PPG Industries (PPG) has been back in focus after better than expected first quarter earnings, fresh industrial coatings expansion in EMEA, new product launches, and updated sustainability progress drew renewed attention to the stock.

Despite the recent catalyst of stronger than expected Q1 results and new coatings launches, PPG’s share price return is still down over the past quarter. The 1-year total shareholder return of 0.52% and 3-year total shareholder return decline of 13.69% point to weak longer term momentum.

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So with PPG’s shares lagging over 3 and 5 years despite revenue and net income growth and an indicated 37% intrinsic discount, are you looking at an underappreciated coatings giant, or a stock that already reflects future gains?

Most Popular Narrative: 29.4% Undervalued

According to Dman, the most followed valuation view puts PPG Industries at a fair value of $152.76 versus the last close at $107.78, a sizeable gap that turns recent share price weakness into a key part of the story.

PPG Industries, Inc. (NYSE: PPG), a global leader in paints, coatings, and specialty materials, presents a complex investment profile as of February 2025. The company’s stock has underperformed the broader market over the past year, declining 16% compared to the S&P 500’s 22.5% gain1. Mixed quarterly results, strategic pivots toward high-growth technologies, and diverging analyst opinions create a nuanced landscape for investors. This report synthesizes financial data, market trends, and strategic developments to evaluate PPG’s investment potential, balancing near-term headwinds against long-term opportunities in the evolving coatings industry.

Curious what sits behind that valuation gap? This narrative leans heavily on a specific mix of revenue growth, margins and future earnings multiples. The balance between slower near term forecasts and longer term earnings power is not what headline numbers suggest. The full story is in how those assumptions compound over time.

Result: Fair Value of $152.76 (UNDERVALUED)

However, this depends on assumptions of 16% revenue growth and future P/E multiples, which could be pressured if end markets remain soft or input costs rise again.

Next Steps

With mixed signals on value and sentiment, it makes sense to look at the underlying data yourself and decide how convincing this setup really is. To weigh both the potential upside and the concerns already flagged, start by checking the 5 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.