PPG IndustriesFRA:PPQ -0.67%86 Pretax Margin % is 13.16% as of Mar. 2026, which is 21% above its 10-year median of 10.89. GuruFocus rates FRA:PPQ with a GF Score™ of 86/100 and a GF Value™ of €118.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,579 Chemicals companies, PPG Industries ranks better than 75.81% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
PPG Industries Pretax Margin % Related Terms
PPG Industries Pretax Margin % Historical Data
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The historical data trend for PPG Industries's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PPQ vs IFF, DD, LYB: Pretax Margin % Comparison
For the Specialty Chemicals subindustry, PPG Industries's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PPG Industries Pretax Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, PPG Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where PPG Industries's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PPG Industries (FRA:PPQ) has a Pretax Margin % of 13.16% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PPG Industries and its competitors. This is 21% above median its historical median of 10.89. Over the past decade, PPG Industries' Pretax Margin % has ranged from 5.46 to 13.60. According to the industry distribution chart, PPG Industries ranks #382 out of 1579 companies in the Chemicals industry, placing it in the top 24.2%.
Is PPG Industries' Pretax Margin % too high?
PPG Industries' current Pretax Margin % of 13.16% is 21% above median its 10-year median of 10.89. Over the past 10 years, this metric has ranged from a low of 5.46 to a high of 13.60. The Chemicals industry median Pretax Margin % is 5.33. PPG Industries' value of 13.16% is 146.9% above this industry median. Based on the distribution chart, PPG Industries ranks #382 out of 1579 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, PPG Industries has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PPG Industries' Pretax Margin % compare to IFF and DD?
According to the Chemicals industry distribution chart, PPG Industries ranks #382 out of 1579 companies for Pretax Margin %. This places PPG Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.33. PPG Industries' value of 13.16% is 146.9% above this benchmark. Historically, PPG Industries' own Pretax Margin % has ranged from 5.46 to 13.60 over the past decade. While the company's 10-year median is 10.89 vs. the industry median of 5.33, PPG Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Chemicals company?
The median Pretax Margin % among Chemicals companies is 5.33, based on 1,579 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PPG Industries's current Pretax Margin % of 13.16% is 146.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PPG Industries and its competitors. For the Chemicals industry, the median Pretax Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPG Industries's current Pretax Margin % is 13.16%, which is 21% above median its own 10-year median of 10.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPG Industries stock overvalued right now?
Based on GuruFocus' analysis, PPG Industries (FRA:PPQ) is currently considered Modestly Undervalued. The stock's GF Value™ is €118.93, compared to a current price of €104.30 — trading 12.3% below its estimated fair value. The current Pretax Margin % is 13.16%, which is 21% above median its 10-year median of 10.89 and 146.9% above the Chemicals industry median of 5.33. PPG Industries' overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For PPG Industries (FRA:PPQ), the current Pretax Margin % is 13.16% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PPG Industries (FRA:PPQ) Overvalued in 2026?
Based on GuruFocus' analysis, PPG Industries stock appears to be undervalued.
The current stock price of €104.30 is trading 12.3% below its estimated GF Value™ of €118.93.
GuruFocus considers PPG Industries to be Modestly Undervalued.
Key valuation signals for FRA:PPQ:
Pretax Margin %: 13.16% (21% above median its 10-year median of 10.89)
GF Value™: €118.93 vs. price of €104.30 (12.3% below fair value)
Industry Position: 146.9% above the Chemicals median (#382 of 1579)
No single metric tells the full story. See the FRA:PPQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PPG is the world's second-largest producer of paints and coatings. PPG's products are sold to a wide variety of end users, including industrial segments such as automotive, aerospace, and protective and marine, as well as paint contractors and do-it-yourself customers. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years.
86GF Score
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