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Is PPG Industries (PPG) Undervalued Following Its New Low VOC Coating Launch?

Simply Wall St · 1d ago

PPG Industries (PPG) drew fresh attention after Pittsburgh Paints introduced Pitthane Ultra Waterborne Polyurethane, a low VOC, LEED v4 approved coating positioned as an alternative to high gloss solvent based urethanes.

PPG Industries has paired this product launch with steady trading interest, with the US$107.77 share price up 2.7% on a 1-day basis and modestly higher year to date. However, the 90-day share price return is down 10.9% and the 3-year total shareholder return is also lower, which suggests recent momentum is trying to rebuild after a weaker stretch.

Scan how PPG Industries compares with other materials players that are leaning into coatings and infrastructure demand by reviewing our curated list of 40 power grid technology and infrastructure stocks today.

PPG Industries is trying to shake off a weak 3 year stretch just as the shares tick higher on fresh product news. Is this a reasonable entry point, or does patience make more sense until valuation looks clearer?

Most Popular Narrative: 15% Undervalued

On the most followed narrative, PPG Industries screens as undervalued, with a fair value estimate of $126.29 against the recent $107.77 close, and that gap rests on concrete capacity projects and cost actions rather than broad growth hopes.

PPG Industries is building out its aerospace and protective and marine coatings capacity, supported by a roughly US$300 million aerospace backlog and more than US$0.5 billion of related investments. This activity can support higher revenue and segment earnings as orders are fulfilled and converted into shipments.

See why 38 investors see PPG Industries as 15% undervalued.

Result: Fair Value of $126.29 (UNDERVALUED)

Still, PPG Industries faces pressure if auto production stays weak in the U.S. and Europe, and if index-linked pricing lags rising raw material costs.

Find out about the key risks to this PPG Industries narrative.

Next Steps

Sentiment on PPG Industries is mixed, with clear risks on one side and real upside arguments on the other. Move quickly to check the underlying data and decide where you land by reviewing the 5 key rewards and 1 important warning sign.

Looking for more investment ideas beyond PPG Industries?

If you only stop at PPG Industries, you might miss opportunities that better fit your goals, risk comfort, and time horizon across sectors and market caps.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.