Using the industry peer median P/E multiple (trailing + forward), PPG Industries, Inc. (PPG) has a fair value of $152.41 based on 1 comparable companies in the Chemicals - Specialty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| PPG Industries, Inc.PPG | 23,923 | 15.2x | 13.8x |
| Steel Dynamics, Inc.STLD | 25,341 | 21.7x | 21.8x |
| Industry Median | 21.7x | 21.8x | |
| (*) Profit after tax | 1,576 | 1,736 | |
| Equity Value | 34,236 | 34,990 | |
| (/) Outstanding shares | 227 | 227 | |
| Fair Price | $151 | $154 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.