PPG Industries Current Valuation vs. Price To Earning
| PPG Stock | USD 124.37 0.92 0.75% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.31 | 0.4136 |
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| Net Profit Margin | 0.059 | 0.0696 |
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| Operating Profit Margin | 0.14 | 0.1526 |
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| Pretax Profit Margin | 0.12 | 0.0958 |
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| Return On Assets | 0.0606 | 0.0587 |
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| Return On Equity | 0.14 | 0.1622 |
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For PPG Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PPG Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PPG Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PPG Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PPG Industries over time as well as its relative position and ranking within its peers.
PPG |
PPG Industries' Revenue Breakdown by Earning Segment
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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PPG Industries. If investors know PPG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PPG Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.117 | Dividend Share 2.63 | Earnings Share 6.31 | Revenue Per Share 76.764 | Quarterly Revenue Growth (0.01) |
The market value of PPG Industries is measured differently than its book value, which is the value of PPG that is recorded on the company's balance sheet. Investors also form their own opinion of PPG Industries' value that differs from its market value or its book value, called intrinsic value, which is PPG Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PPG Industries' market value can be influenced by many factors that don't directly affect PPG Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PPG Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if PPG Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PPG Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
PPG Industries Price To Earning vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PPG Industries's current stock value. Our valuation model uses many indicators to compare PPG Industries value to that of its competitors to determine the firm's financial worth. PPG Industries is rated below average in current valuation category among its peers. It also is rated below average in price to earning category among its peers . The ratio of Current Valuation to Price To Earning for PPG Industries is about 1,154,067,401 . Comparative valuation analysis is a catch-all technique that is used if you cannot value PPG Industries by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.PPG Current Valuation vs. Competition
PPG Industries is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is at this time estimated at about 647.92 Billion. PPG Industries holds roughly 34.59 Billion in current valuation claiming about 5% of all equities under Materials industry.
PPG Price To Earning vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
PPG Industries |
| = | 34.59 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
PPG Industries |
| = | 29.97 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
PPG Price To Earning Comparison
PPG Industries is currently under evaluation in price to earning category among its peers.
PPG Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PPG Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PPG Industries will eventually generate negative long term returns. The profitability progress is the general direction of PPG Industries' change in net profit over the period of time. It can combine multiple indicators of PPG Industries, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.2 B | -2.1 B | |
| Operating Income | 2.8 B | 1.4 B | |
| Income Before Tax | 1.7 B | 1.2 B | |
| Total Other Income Expense Net | -1 B | -984.2 M | |
| Net Income | 1.3 B | 861.3 M | |
| Income Tax Expense | 439 M | 354.4 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.2 B | |
| Net Income From Continuing Ops | 1.3 B | 1.3 B | |
| Non Operating Income Net Other | 131.1 M | 137.7 M | |
| Interest Income | 140 M | 147 M | |
| Net Interest Income | -107 M | -112.3 M | |
| Change To Netincome | -81.9 M | -77.8 M | |
| Net Income Per Share | 5.38 | 5.65 | |
| Income Quality | 1.90 | 1.02 | |
| Net Income Per E B T | 0.73 | 0.61 |
PPG Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PPG Industries. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PPG Industries position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PPG Industries' important profitability drivers and their relationship over time.
Use PPG Industries in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PPG Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PPG Industries will appreciate offsetting losses from the drop in the long position's value.PPG Industries Pair Trading
PPG Industries Pair Trading Analysis
The ability to find closely correlated positions to PPG Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PPG Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PPG Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PPG Industries to buy it.
The correlation of PPG Industries is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PPG Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PPG Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PPG Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your PPG Industries position
In addition to having PPG Industries in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center. For more detail on how to invest in PPG Stock please use our How to Invest in PPG Industries guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project PPG Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PPG Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PPG Industries' income statement, its balance sheet, and the statement of cash flows.