FCF Yield
Higher than 67% of Basic Materials sector peers
Updated 154h ago
Sector Performance
67th percentilePPG
4.5%
Sector Median
4.4%
Sector Avg
3.2%
Deep Analysis
The current FCF Yield of 4.5% means that for every $100 you invest in PPG, the company generates $4.50 in free cash flow (cash left after operating and capital expenses) — a measure of how much cash the business throws off relative to its stock price.
This yield sits above the Basic Materials sector median of 4.2% and places PPG in the 75th percentile among peers, indicating stronger cash generation than three-quarters of similar companies. Despite the latest quarter showing a +4.7% increase from 4.3% to 4.5%, the overall eight-quarter trend is decreasing, though no year-over-year comparison is available. The combination of an above-peer yield with a declining trend suggests that while the cash return is still favorable, the momentum is softening, which introduces moderate uncertainty about future cash generation. This mixed signal supports the NEUTRAL verdict: the yield level justifies a hold, but the downward drift doesn’t yet warrant a bullish or bearish call.
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 4.5% 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%).
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.
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4.5%
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.