PPG
PPG Industries, Inc.
$105.50
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 1.6% above fair value
You pay
$105.50
Bear
$83.04
Fair
$103.80
Bull
$124.56
Bear
$83.04
-21.3%
$6.92 × 12x P/E
Fair
$103.80
-1.6%
$6.92 × 15x P/E
Bull
$124.56
+18.1%
$6.92 × 18x P/E
Adjust Assumptions
15.0x
6.92$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
15.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (38 analysts)
$130.60
Divergence from AlphaVal
21%
Summary
Applying a 15x P/E to adjusted EPS of $6.92, the base-case value is $103.80 per share. DDM cross-check: $69.69.
Warnings
Dividend-based valuation: $69.69 (below our primary estimate by 33%). Large gaps may signal the dividend doesn't reflect full earning power.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples