Latest Ratios: P/E Ratio 17.4x · EV/EBITDA 11.9x · ROE 92.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.9B | $23.3B | $28.1B | $35.5B | $29.8B | $41.3B | $34.3B | $31.8B | $25.1B | $30.1B | $25.3B |
| Enterprise Value | $32.2B | $28.6B | $33.2B | $40.6B | $36.4B | $47.7B | $39.1B | $36.4B | $29.2B | $32.8B | $27.9B |
| P/E Ratio → | 17.37 | 14.81 | 25.15 | 27.95 | 29.11 | 28.69 | 32.41 | 25.57 | 18.72 | 18.90 | 28.89 |
| P/S Ratio | 1.69 | 1.47 | 1.77 | 2.18 | 1.91 | 2.46 | 2.48 | 2.10 | 1.63 | 2.04 | 1.78 |
| P/B Ratio | — | — | 4.03 | 4.42 | 4.45 | 6.44 | 5.90 | 5.89 | 5.30 | 5.31 | 5.16 |
| P/FCF | 23.13 | 20.01 | 40.14 | 18.72 | 62.55 | 34.66 | 18.79 | 19.07 | 23.76 | 24.93 | 27.45 |
| P/OCF | 13.86 | 11.99 | 19.76 | 14.71 | 30.98 | 26.43 | 16.11 | 15.29 | 17.10 | 19.21 | 19.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.80 | 2.09 | 2.50 | 2.33 | 2.84 | 2.83 | 2.40 | 1.90 | 2.23 | 1.96 |
| EV / EBITDA | 11.93 | 10.59 | 11.94 | 15.92 | 16.78 | 21.25 | 17.08 | 14.83 | 12.38 | 13.27 | 17.15 |
| EV / EBIT | 14.84 | 12.49 | 15.85 | 20.95 | 23.90 | 24.66 | 26.06 | 20.32 | 16.12 | 15.56 | 30.90 |
| EV / FCF | — | 24.55 | 47.47 | 21.41 | 76.26 | 40.09 | 21.41 | 21.85 | 27.65 | 27.17 | 30.27 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.0% | 38.0% | 41.6% | 40.4% | 36.1% | 38.8% | 43.8% | 42.9% | 41.5% | 44.3% | 46.3% |
| Operating Margin | 13.7% | 13.7% | 14.4% | 12.5% | 10.7% | 10.0% | 12.9% | 12.8% | 12.1% | 13.7% | 8.3% |
| Net Profit Margin | 9.9% | 9.9% | 7.0% | 7.8% | 6.6% | 8.6% | 7.7% | 8.2% | 8.7% | 10.8% | 6.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 92.2% | 92.2% | 14.9% | 17.2% | 15.6% | 23.5% | 18.9% | 24.5% | 25.8% | 30.1% | 17.5% |
| ROA | 11.5% | 11.5% | 5.4% | 6.0% | 4.9% | 7.0% | 5.7% | 7.4% | 8.2% | 9.9% | 5.3% |
| ROIC | 23.5% | 23.5% | 13.6% | 11.6% | 9.6% | 10.8% | 12.9% | 15.5% | 16.2% | 19.0% | 11.5% |
| ROCE | 24.8% | 24.8% | 14.7% | 12.5% | 10.2% | 10.8% | 12.7% | 15.6% | 15.3% | 16.7% | 10.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | 0.92 | 0.82 | 1.14 | 1.16 | 1.14 | 1.08 | 1.06 | 0.73 | 0.90 |
| Debt / EBITDA | 2.76 | 2.76 | 2.30 | 2.59 | 3.52 | 3.32 | 2.89 | 2.38 | 2.13 | 1.68 | 2.71 |
| Net Debt / Equity | — | — | 0.74 | 0.64 | 0.97 | 1.01 | 0.82 | 0.86 | 0.87 | 0.48 | 0.53 |
| Net Debt / EBITDA | 1.96 | 1.96 | 1.84 | 2.00 | 3.01 | 2.88 | 2.09 | 1.88 | 1.74 | 1.10 | 1.59 |
| Debt / FCF | — | 4.54 | 7.33 | 2.69 | 13.70 | 5.42 | 2.62 | 2.78 | 3.90 | 2.24 | 2.81 |
| Interest Coverage | 9.49 | 9.49 | 8.68 | 7.84 | 9.11 | 16.00 | 10.87 | 13.58 | 15.35 | 20.10 | 7.23 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.62 | 1.62 | 1.31 | 1.47 | 1.52 | 1.42 | 1.41 | 1.41 | 1.36 | 1.66 | 1.55 |
| Quick Ratio | 1.22 | 1.22 | 0.94 | 1.09 | 1.04 | 0.97 | 1.05 | 1.02 | 0.96 | 1.22 | 1.19 |
| Cash Ratio | 0.45 | 0.45 | 0.27 | 0.31 | 0.24 | 0.22 | 0.40 | 0.29 | 0.22 | 0.38 | 0.44 |
| Asset Turnover | — | 1.99 | 0.82 | 0.75 | 0.75 | 0.79 | 0.71 | 0.86 | 0.96 | 0.89 | 0.90 |
| Inventory Turnover | 4.93 | 4.93 | 5.01 | 5.00 | 4.39 | 4.74 | 4.48 | 5.06 | 5.05 | 4.75 | 5.06 |
| Days Sales Outstanding | — | 76.70 | 68.76 | 67.58 | 77.21 | 68.47 | 71.92 | 66.42 | 67.54 | 71.85 | 67.88 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.7% | 2.2% | 1.7% | 1.9% | 1.3% | 1.4% | 1.5% | 1.8% | 1.4% | 1.6% |
| Payout Ratio | 39.8% | 39.8% | 55.7% | 47.1% | 55.6% | 37.2% | 46.8% | 37.7% | 33.8% | 27.2% | 47.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.8% | 6.8% | 4.0% | 3.6% | 3.4% | 3.5% | 3.1% | 3.9% | 5.3% | 5.3% | 3.5% |
| FCF Yield | 4.3% | 5.0% | 2.5% | 5.3% | 1.6% | 2.9% | 5.3% | 5.2% | 4.2% | 4.0% | 3.6% |
| Buyback Yield | 2.9% | 3.4% | 2.7% | 0.2% | 0.6% | 0.5% | 0.0% | 1.0% | 6.9% | 2.7% | 4.1% |
| Total Shareholder Yield | 5.2% | 6.1% | 4.9% | 1.9% | 2.5% | 1.8% | 1.4% | 2.5% | 8.7% | 4.1% | 5.8% |
| Shares Outstanding | — | $227M | $235M | $237M | $237M | $239M | $238M | $238M | $245M | $258M | $267M |
Cyclical Margin Compression
Based on current market data, PPG trades at a forward P/E of 15.65, which appears to discount the company as a mature industrial entity rather than a high-growth specialty chemical firm, especially when compared to the premium multiples commanded by retail-integrated peers like The Sherwin-Williams Company.
The current EV/EBITDA multiple of 12.19 suggests that investors are pricing in moderate growth expectations, likely tempered by the company's exposure to volatile global industrial production indices. This valuation warrants further investigation into whether the market is adequately accounting for the potential margin expansion from the strategic review of the architectural business.
As reported in financial statements, PPG's ROIC has struggled to gain momentum, hovering between 2.3% and 4.9% over the last ten quarters, which indicates that the company is currently failing to consistently generate returns that exceed its likely weighted average cost of capital in the current environment.
The persistent gap between ROIC and historical performance suggests that the integration of past acquisitions, coupled with significant goodwill on the balance sheet, continues to weigh on capital efficiency. Investors should monitor whether management's shift toward portfolio optimization can improve these returns by shedding lower-margin, capital-intensive assets.
According to recent quarterly filings, PPG's asset turnover remains low at 0.26, reflecting a capital-intensive manufacturing base that appears to struggle with inventory management, as evidenced by the cash conversion cycle fluctuating significantly from 5 to 77 days over the observed ten-quarter period.
The high variability in the cash conversion cycle suggests that the company faces challenges in aligning its supply chain with fluctuating demand in the automotive and industrial segments. This inefficiency may indicate that PPG is carrying excess inventory to mitigate supply chain risks, which negatively impacts overall operational leverage.
Based on reported figures, PPG's debt-to-EBITDA ratio has fluctuated between 8.79 and 14.54, suggesting that while the company maintains a healthy balance sheet, its ability to service debt is highly sensitive to the cyclical swings in operating income inherent in the specialty chemicals industry.
The interest coverage ratio, which has dipped as low as 1.18 in recent periods, indicates that the company's debt service capacity is vulnerable during cyclical downturns. Investors should monitor the company's reliance on external financing, as the current debt-to-equity ratio of 0.94 leaves limited room for further balance sheet expansion.
The P/E ratio is frequently misapplied to PPG because it fails to account for the significant non-recurring restructuring charges and amortization of intangibles that distort net income, making the EV/EBITDA metric a more reliable indicator of the company's underlying cash-generating capability and operational performance.
Relying solely on P/E ratios obscures the impact of PPG's aggressive acquisition strategy and the resulting accounting noise. Analysts should instead focus on normalized EBITDA and free cash flow to better understand the company's true earning power and its ability to sustain its dividend commitment.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PPG stock.
PPG Industries, Inc.'s current P/E ratio is 17.4x. The historical average is 19.6x. This places it at the 45th percentile of its historical range.
PPG Industries, Inc.'s current EV/EBITDA is 11.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
PPG Industries, Inc.'s return on equity (ROE) is 92.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 27.0%.
Based on historical data, PPG Industries, Inc. is trading at a P/E of 17.4x. This is at the 45th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PPG Industries, Inc.'s current dividend yield is 2.30% with a payout ratio of 39.8%.
PPG Industries, Inc. has 38.0% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
PPG Industries, Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.