PPG PEG Ratio Analysis
Higher than 100% of Basic Materials sector peers
Updated 29h ago·SEC filings & market data
Key Takeaway
The PEG ratio (price-to-earnings divided by expected earnings growth) of 6.53x for PPG Industries means the stock trades at a price that is over six times its projected earnings growth rate — well above the threshold of 1.0x that typically indicates a reasonable balance between price and growth.
Sector Performance
100th percentilePPG
6.53x
Sector Median
0.22x
Sector Avg
0.80x
Prior Period
0.57x(Apr 2026)
Deep Analysis
The PEG ratio (price-to-earnings divided by expected earnings growth) of 6.53x for PPG Industries means the stock trades at a price that is over six times its projected earnings growth rate — well above the threshold of 1.0x that typically indicates a reasonable balance between price and growth.
Compared to its Basic Materials sector peers, PPG’s PEG ratio sits at the 100th percentile, vastly exceeding the sector median of 0.22x, which shows it is the most expensive stock in its peer group on a growth-adjusted basis. Trend data is not available — there are no year-over-year or quarter-over-quarter changes to evaluate. The combination of an extremely elevated level (far above the sector norm) and no trend information implies that the stock carries high valuation risk relative to its expected growth, making any potential opportunity dependent on exceptional future performance. This metric directly contradicts the overall NEUTRAL verdict, as a PEG ratio of 6.53x in the 100th percentile among peers is a clear warning sign of overvaluation rather than a balanced risk-reward profile.
Frequently Asked Questions
What does the PEG Ratio tell investors about PPG?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does PPG's PEG Ratio compare to its sector?
PPG's PEG Ratio of 6.53x compares to a Basic Materials sector median of 0.22x, placing it in the 100th percentile.
Who are PPG's closest peers by PEG Ratio?
The closest Basic Materials peers by PEG Ratio include: APD (0.22x), VALE (0.25x), AEM (0.17x), WPM (0.29x), KGC (0.11x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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6.53x
Sector Median
0.22x
Sector Avg
0.80x
How PPG's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.