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PPG Industries, Inc. (PPG) — WACC Analysis

WACC Breakdown

PPG Industries, Inc. (PPG) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 9.0%, derived from a beta of 1.02 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.0%. The capital structure is 79.7% equity and 20.3% debt.

Interpretation

A WACC of 7.8% suggests that the market views PPG Industries, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare PPG's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 1.02 reflects the stock's volatility relative to the broader market.

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VALUATION

PPG WACC: 7.80% for PPG Industries, Inc.

Current inputs imply a 9.02% cost of equity and a 3.82% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

PPG Industries, Inc. Common Stock (PPG) WACC Results
Weighted Average Cost of Capital
7.80%
Cost of Equity
9.02%
Risk-Free Rate4.73%
Beta1.02
Market Risk Premium4.23%
Cost of Debt
3.01%
Pre-Tax Cost of Debt3.82%
Tax Rate21.00%
Tax Shield0.80%
Capital Structure
Equity: 79.75%($25.39B)
Debt: 20.25%($6448.00M)
Equity Component
7.19%
79.75% × 9.02%
Debt Component
0.61%
20.25% × 3.01%

PPG Industries, Inc. (PPG) WACC in context

PPG Industries, Inc. (PPG) currently screens with an estimated WACC of 7.80%. That blends a 9.02% cost of equity, a 3.82% pre-tax cost of debt, and a 79.75% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What PPG WACC implies

A 7.80% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates PPG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.02 and equity accounts for 79.75% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.