Using the PEG framework with analyst consensus forward EPS growth of 11.9% plus 2.7% dividend yield, PPG Industries, Inc. has a fair value of $94.65 based on NTM EPS (FY2026) of $7.94. The current PEG ratio is 1.11.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 9.2% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 11.9% |
| Fair P/E | 11.9x |
| NTM EPS (FY2026) | $7.94 |
| Fair Value | $94.65 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.92 | — | — |
| FY2026E | $7.94 | +14.8% | 16 |
| FY2027E | $8.67 | +9.1% | 15 |
| FY2028E | $9.52 | +9.8% | 12 |
| FY2029E | $9.86 | +3.5% | 11 |
4Y Forward EPS CAGR: 9.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.4B | $6.01 | — |
| FY2022 | $1.0B | $4.32 | -28.1% |
| FY2023 | $1.3B | $5.35 | +23.8% |
| FY2024 | $1.1B | $4.75 | -11.2% |
| FY2025 | $1.6B | $6.92 | +45.7% |
4Y Historical EPS CAGR: 3.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.