Explain this page
Arphra AIPlain-English read on PPG Industries, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +38.78% | +36.12% | +40.41% | +41.61% | +37.99% | +40.14% | +41.20% | +39.46% | +41.20% |
| Operating margin | +10.03% | +10.67% | +12.53% | +14.43% | +13.66% | +13.24% | +13.38% | +13.59% | +13.59% |
| EBITDA margin | +14.86% | +12.96% | +15.09% | +16.31% | +17.73% | +16.38% | +16.07% | +16.55% | +16.00% |
| EBIT margin | +11.52% | +9.75% | +11.93% | +13.21% | +14.40% | +13.13% | +13.25% | +13.51% | +12.81% |
| Pre-tax margin | +10.80% | +8.68% | +10.41% | +11.69% | +12.88% | +11.92% | +12.00% | +11.51% | +11.61% |
| Net margin | +8.56% | +6.57% | +7.82% | +7.04% | +9.93% | +8.33% | +8.24% | +8.42% | +8.03% |
| Cost structure | |||||||||
| Cost of revenue / sales | +61.22% | +63.88% | +59.59% | +58.39% | +62.01% | +59.57% | +58.40% | +58.95% | +58.46% |
| R&D intensity | +2.61% | +2.78% | +2.61% | +2.67% | +2.66% | +2.65% | +2.58% | +2.66% | +2.66% |
| SG&A intensity | +22.79% | +19.45% | +22.11% | +21.40% | +21.66% | +22.05% | +21.62% | +21.55% | +22.12% |
| Effective tax rate | +20.61% | +23.62% | +25.33% | +25.65% | +22.40% | +23.95% | +24.43% | +25.32% | +24.48% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +22.45% | +15.29% | +15.83% | +16.03% | -44.48% | +84.13% | +84.33% | +86.45% | +85.49% |
| Return on assets (ROA) | +6.74% | +4.95% | +5.87% | +5.74% | +19.80% | +7.98% | +8.01% | +8.21% | +7.66% |
| Return on capital (ROC) | +12.15% | +11.61% | +13.92% | +17.12% | +55.57% | +24.93% | +25.11% | +25.72% | +26.10% |
| Return on invested capital (ROIC) | +10.37% | +7.15% | +8.69% | +8.36% | +40.38% | +15.69% | +15.48% | +15.93% | +15.42% |
| Asset turnover | +78.69% | +75.27% | +75.03% | +81.54% | +199.46% | +95.81% | +97.16% | +97.52% | +95.44% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +8.56% | +6.57% | +7.82% | +7.04% | +9.93% | +8.33% | +8.24% | +8.42% | +8.03% |
| Asset turnover (× revenue / assets) | +78.69% | +75.27% | +75.03% | +81.54% | +199.46% | +95.81% | +97.16% | +97.52% | +95.44% |
| Equity multiplier (× assets / equity) | +333.04% | +309.20% | +269.81% | +279.13% | -224.64% | +1053.89% | +1052.67% | +1053.32% | +1116.11% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.79 | 0.75 | 0.75 | 0.82 | 1.99 | 0.96 | 0.97 | 0.98 | 0.95 |
| Fixed-asset turnover | 3.88 | 3.76 | 4.04 | 3.90 | — | — | — | — | — |
| Inventory turnover | 4.74 | 4.39 | 5.00 | 5.01 | 4.93 | — | — | — | — |
| Receivables turnover | 5.33 | 4.73 | 5.40 | 5.31 | 4.76 | — | — | — | — |
| Payables turnover | 2.75 | 2.87 | 2.93 | 3.05 | 2.49 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 68.47 | 77.21 | 67.58 | 68.76 | 76.70 | — | — | — | — |
| Days inventory outstanding (DIO) | 77.04 | 83.14 | 72.94 | 72.83 | 74.01 | — | — | — | — |
| Days payables outstanding (DPO) | 132.54 | 127.05 | 124.72 | 119.73 | 146.72 | — | — | — | — |
| Cash conversion cycle | 12.97 | 33.30 | 15.79 | 21.85 | 3.99 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.09 | 0.94 | 1.90 | 1.27 | 1.23 | 1.42 | 1.50 | 1.40 | 1.51 |
| FCF / Net income | 0.83 | 0.46 | 1.49 | 0.63 | 0.74 | 0.93 | 0.96 | 0.94 | 0.98 |
| FCF margin | +7.09% | +3.05% | +11.67% | +4.41% | +7.33% | +7.76% | +7.90% | +7.92% | +7.90% |
| OCF margin | +9.30% | +6.17% | +14.84% | +8.96% | +12.23% | +11.85% | +12.35% | +11.81% | +12.11% |
| CapEx / Revenue | +2.21% | +3.11% | +3.18% | +4.55% | +4.90% | +4.31% | +4.22% | +4.26% | +4.10% |
| CapEx / D&A | 0.66 | 0.97 | 1.00 | 1.47 | 1.42 | — | — | — | — |
| Stock-based comp / Revenue | +0.34% | +0.22% | +0.34% | +0.27% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 6.01 | 4.32 | 5.35 | 4.75 | 6.92 | 7.87 | 8.64 | 9.48 | 10.47 |
| EPS · basic | 6.06 | 4.35 | 5.38 | 4.77 | 6.96 | 7.83 | 8.67 | 9.43 | 10.42 |
| Book value / share | 26.78 | 28.27 | 33.82 | 29.64 | -15.60 | 7.27 | 7.46 | 7.57 | 7.49 |
| Tangible BV / share | -10.94 | -7.51 | -1.49 | -2.77 | -15.60 | 7.27 | 7.46 | 7.57 | 7.49 |
| Sales / share | 70.18 | 65.80 | 68.47 | 67.45 | 69.90 | 73.41 | 76.35 | 77.73 | 79.83 |
| Operating CF / share | 6.52 | 4.06 | 10.16 | 6.05 | 8.55 | 8.70 | 9.43 | 9.18 | 9.67 |
| Free cash flow / share | 4.97 | 2.01 | 7.99 | 2.98 | 5.12 | 5.70 | 6.03 | 6.16 | 6.31 |
| Dividends / share | 2.24 | 2.40 | 2.52 | 2.65 | 2.77 | 2.85 | 2.99 | 3.07 | 3.15 |
| Payout ratio | +37.25% | +55.56% | +47.09% | +55.73% | +39.85% | +46.59% | +47.49% | +46.98% | +49.21% |
| Retention ratio | +62.75% | +44.44% | +52.91% | +44.27% | +60.15% | +53.41% | +52.51% | +53.02% | +50.79% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | -7.07% | +4.02% | -2.44% | +0.19% | +4.98% | +3.45% | +2.74% | +1.37% | +0.83% |
| Gross profit · YoY | — | -13.46% | +16.40% | +0.44% | -8.52% | +10.92% | +6.18% | -1.61% | +5.83% | +1.60% |
| Profit | ||||||||||
| Operating income · YoY | — | -1.19% | +22.15% | +12.38% | -5.16% | +1.75% | +4.50% | +4.39% | +1.34% | +4.73% |
| EBITDA · YoY | — | -18.94% | +21.10% | +5.47% | +8.86% | -2.99% | +1.50% | +5.79% | -1.98% | +1.77% |
| Net income · YoY | — | -28.70% | +23.78% | -12.13% | +41.22% | -11.89% | +2.37% | +4.87% | -3.33% | +0.02% |
| Operating | ||||||||||
| EBIT · YoY | — | -21.38% | +27.27% | +8.05% | +9.22% | -4.29% | +4.40% | +4.76% | -3.86% | +2.18% |
| R&D · YoY | — | -1.14% | -2.30% | -0.24% | 0.00% | +4.31% | +0.66% | +6.01% | +1.61% | +1.08% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -28.12% | +23.84% | -11.21% | +45.68% | +13.77% | +9.76% | +9.73% | +10.41% | +7.18% |
| EPS · basic · YoY | — | -28.22% | +23.68% | -11.34% | +45.91% | +12.44% | +10.85% | +8.69% | +10.56% | +7.01% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $7.47B | $7.64B | $6.6B | $6.4B | $7.45B | $7.2B | $7.5B | $7.64B | $7.66B |
| Net debt | $6.46B | $6.54B | $5.11B | $5.13B | $5.28B | $5.47B | $5.73B | $5.79B | $5.83B |
| Net debt / EBITDA | 2.59 | 3.23 | 2.08 | 1.98 | 1.88 | 2.00 | 2.07 | 1.98 | 2.03 |
| Debt / equity | 1.16 | 1.14 | 0.82 | 0.92 | -2.10 | 4.36 | 4.45 | 4.43 | 4.55 |
| Debt / assets | +34.97% | +36.81% | +30.48% | +32.91% | +93.55% | +41.41% | +42.26% | +42.04% | +40.73% |
| Equity / assets | +30.03% | +32.34% | +37.06% | +35.83% | -44.52% | +9.49% | +9.50% | +9.49% | +8.96% |
| Coverage | |||||||||
| EBITDA / interest expense | 20.64 | 12.12 | 9.92 | 10.73 | 11.68 | 10.97 | 10.32 | 11.18 | 10.78 |
| Operating income / interest | 13.93 | 9.98 | 8.24 | 9.49 | 9.00 | 8.86 | 8.59 | 9.19 | 9.15 |
| Interest expense | $121M | $167M | $247M | $241M | $241M | $248.96M | $268.57M | $262.11M | $266.59M |
| Liquidity | |||||||||
| Current ratio | 1.42 | 1.52 | 1.47 | 1.31 | 1.62 | — | — | — | — |
| Quick ratio | 0.89 | 0.94 | 0.91 | 0.87 | 1.13 | — | — | — | — |
| Cash ratio | 0.21 | 0.23 | 0.30 | 0.25 | 0.44 | — | — | — | — |
| Working capital | $2.01B | $2.45B | $2.38B | $1.54B | $3.06B | — | — | — | — |
| Working capital / revenue | +11.95% | +15.70% | +14.63% | +9.74% | +19.27% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).