Stock analysis · Bull Rankings model

PPG analysis

PPG Industries, Inc.Specialty Chemicals. Scored on the same transparent model behind the daily rankings.

PPG
PPG Industries, Inc. · Specialty Chemicals
FCF$1.2bC+
Rev+2.8%C
D/E0.87C
P/E16.1xB+
PEG1.74C+
59.9Score
$115.81$25.7B
1Y Target$125.65Analyst consensus · 20 analysts
5Y Target$183.96Compound horizon
10Y Target$272.90Long-dated conviction
FCF$1.2bTTM
C+
FCF $1.2b — respectable but not differentiating
Rev+2.8%TTM YoY
C
Revenue +2.8% — flat, mature phase or headwinds present
D/E0.87
C
D/E 0.87 — more levered than most Basic Materials peers (≈90th pctile)
P/E16.1x
B+
P/E 16.1 — below the Basic Materials median (≈40th pctile)
PEG1.74
C+
PEG 1.74 — modest premium; above fair value

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 59.9
Quality0.72
Growth0.50
Value0.59
Why this score
  • Durable high returns
  • Cyclical growth
Entry · Margin of safety
52-week rangeMid-range
13% off the 12-month high
vs DCF fair value28% aboveest. fair value ~$91
What the price assumes: free cash flow compounding at ~13% a year for the next decade — vs the ~10% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability30% · B+gross profit ÷ total assets (Novy-Marx)
ROIC13.9% · B+return on invested capital — not score-weighted
Why now
Specialty Chemicals · market cap $25.7b. 13% off the 52-week high of $133.43. 20 sell-side analysts rate this a Buy with a mean 1-yr target of $125.65 (implying +8% upside).
Moat
ROE 20% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $125.65 (20-analyst consensus) — fundamentals + valuation re-rating. 5 yr $183.96 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $272.90 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

PPG vs the Top Picks average

PillarPPGBook avgDiff
Quality0.720.83-0.10
Growth0.500.91-0.41
Value0.590.75-0.15

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+0.3 over 32 daily scores
From 59.6 (Jun 22) → 59.9 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
17
Position size
$1,969
3.9% of portfolio
Stop price
$86.86
25% below $115.81
$ at risk if stopped
$492.19
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

PPG Industries, Inc. (PPG): score, valuation & FAQ

PPG Industries, Inc. (PPG) is a Specialty Chemicals company that scores 59.9 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (B+). On valuation, PPG sits about 28% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade.

Is PPG a good stock to buy?

Bull Rankings scores PPG 59.9 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (B+). A score is a quantitative screen of PPG Industries, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does PPG score 59.9 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PPG earns its highest marks on P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is PPG overvalued or undervalued?

Based on $115.81, PPG sits about 28% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade. It trades at a 16.1x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in PPG?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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