PPG
PPG Industries, Inc.Basic Materials / Specialty ChemicalsINTACTPPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings. The Global Architectural Coatings segment supplies a variety of decorative coatings, adhesives, sealants, and finishes, as well as paint strippers, stains, and related chemicals. Its Performance Coatings segment offers aerospace coatings, automotive refinishing coatings, protective and marine coatings, and traffic solutions comprising paints, thermoplastics, raised pavement markers, and other technologies for pavement marking. The Industrial Coatings segment provides automotive OEM coatings, industrial coatings, and packaging coatings, as well as specialty products, such as optical monomers and coatings, low-friction coatings, and other specialty products. The company delivers its products to company-owned stores, home centers and other consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
Price vs. Intrinsic Value Corridor
Overvalued vs DCF ($75.03)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $1,182 | $1,265 | $1,354 | $1,448 | $1,550 | $1,620 | $1,692 | $1,769 | $1,848 | $1,931 |
| Present Value (PV) | $1,085 | $1,065 | $1,045 | $1,026 | $1,007 | $966 | $926 | $888 | $851 | $816 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
MODEST BARRIERAt the current price of $105.84, the market is assuming the business will compound Free Cash Flow at 6.5% per year for the next decade with a 9% hurdle rate.
Surveil PPG with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for PPG Industries, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 14% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: PPG Industries, Inc. (PPG) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for PPG Industries, Inc..
Related Basic Materials Value Stocks & Sector Peers
Compare PPG Industries, Inc. with audited intrinsic valuation models across the Basic Materials sector.
Linde plc
Specialty Chemicals
The Sherwin-Williams Company
Specialty Chemicals
Air Products and Chemicals, Inc.
Specialty Chemicals
Freeport-McMoRan Inc.
Copper
Ecolab Inc.
Specialty Chemicals
Nucor Corporation
Steel