Q4 earnings trigger fresh focus on PPG Industries (PPG)

PPG Industries (PPG) is back in the spotlight after Q4 2025 results highlighted 3% organic sales growth, broad based volume and pricing gains, and cost savings alongside 2026 adjusted EPS guidance.

The Q4 update and the recent launch of the PPG STEELGUARD 652 fire protection coating have coincided with strong momentum, with a 30 day share price return of 20.97% and a 35.36% return over 90 days. Meanwhile, the 1 year total shareholder return of 14.49% and 5 year total shareholder return of 5.62% indicate steadier long term compounding.

If recent gains in PPG have you thinking about other industrial themed opportunities, it could be worth scanning 25 power grid technology and infrastructure stocks as a starting point for ideas beyond coatings.

With PPG now trading near a 52 week high after double digit recent gains, the key question is whether its 17.8% intrinsic discount hints at value, or if the market is already paying up for future growth potential.

Most Popular Narrative: 6.1% Overvalued

PPG Industries last closed at $131.34, compared with a widely followed fair value narrative of $123.75 that is built around detailed long term forecasts.

Analysts expect earnings to reach $2.0 billion (and earnings per share of $9.2) by about September 2028, up from $1.3 billion today. The analysts are largely in agreement about this estimate.

Curious what sits behind that fair value gap? The narrative leans on measured revenue growth, higher margins and a lower future earnings multiple than many peers. The mix might surprise you.

Result: Fair Value of $123.75 (OVERVALUED)

However, some of the key risks in that story are hard to ignore, including weaker automotive production and currency pressure that could squeeze revenue and margins.

Another View: Multiples Point To A Different Story

The fair value narrative says PPG Industries at $131.34 is 6.1% above its $123.75 estimate, yet the current P/E of 18.8x sits well below peers at 33.3x, the broader US Chemicals group at 26.9x, and even its own 22.3x fair ratio. Is that a margin of safety or a warning sign?

Build Your Own PPG Industries Narrative

If parts of this narrative do not sit right with you, or you would rather rely on your own view of the numbers, you can build a complete version yourself in just a few minutes: Do it your way.

A great starting point for your PPG Industries research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas beyond PPG?

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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.