PPG Industries, Inc. logo PPG - PPG Industries, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 20
HOLD 16
SELL 2
STRONG
SELL
0
| PRICE TARGET: $127.67 DETAILS
HIGH: $135.00
LOW: $119.00
MEDIAN: $129.00
CONSENSUS: $127.67
UPSIDE: 18.45%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 2.9% below fair value
Current Price $107.78
Bear Case $88.77 17.6% downside ($88.77 - $107.78) / $107.78 = -17.6% $6.92 × 12x P/E
Fair Value $110.96 3.0% upside ($110.96 - $107.78) / $107.78 = 3.0% $6.92 × 15x P/E
Bull Case $133.15 23.5% upside ($133.15 - $107.78) / $107.78 = 23.5% $6.92 × 18x P/E

Adjust Assumptions

15.0x
6.92$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 15.6x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $127.67 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $110.96 per share.

Warnings

Dividend-based valuation: $69.71 (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