PPG FCF Yield Analysis
Higher than 67% of Basic Materials sector peers
Updated 57h ago·SEC filings & market data
Key Takeaway
PPG’s current free cash flow (FCF) yield of 4.5% means that for every $100 you invest in the stock, the company generates roughly $4.50 in cash left over after expenses and capital spending—a measure of how cheaply the market values its cash generation.
Sector Performance
67th percentilePPG
4.6%
Sector Median
4.4%
Sector Avg
3.2%
Prior Period
4.5%(Jul 2026)
Deep Analysis
PPG’s current free cash flow (FCF) yield of 4.5% means that for every $100 you invest in the stock, the company generates roughly $4.50 in cash left over after expenses and capital spending—a measure of how cheaply the market values its cash generation.
This yield sits slightly above the Basic Materials sector median of 4.4%, placing PPG in the 67th percentile among its peers, indicating it offers better cash return than two-thirds of comparable companies. The year-over-year change is not available, but the quarter-over-quarter change shows a 4.7% increase from the prior quarter’s 4.3%, signaling modest improvement in cash-flow valuation. The combination of a yield that is both above the sector median and trending upward suggests a relatively attractive entry point with limited downside risk from valuation compression. This positive metric supports the overall NEUTRAL verdict—it confirms the stock is fairly valued with a cash-flow advantage, but the lack of a longer trend and the sector’s cyclical nature temper any strong bullish case.
Frequently Asked Questions
What does the FCF Yield tell investors about PPG?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does PPG's FCF Yield compare to its sector?
PPG's FCF Yield of 4.6% compares to a Basic Materials sector median of 4.4%, placing it in the 67th percentile.
Who are PPG's closest peers by FCF Yield?
The closest Basic Materials peers by FCF Yield include: AG (4.4%), ALB (4.2%), AEM (5.0%), MAG (-0.7%), SILV (11.3%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PPG's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full PPG research report →PPG
4.6%
Sector Median
4.4%
Sector Avg
3.2%
How PPG's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.