Air Products & Chemicals Inc (APD) is overvalued and PPG Industries Inc (PPG) is slightly overvalued.
Both trade above our estimate of their intrinsic value. PPG is the closer of the two: -16%, against -449% for APD.
Values as of the 22 Sept 2026 close.
Its through-the-cycle earnings (22.1% median margin), capitalised at 8.3% with no growth, values the shares at $52.43; the price of $287.86 is 449% above that value.
Leak Score 33/100 on 8 of 12 signals
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $92.86; the price of $107.77 is 16% above that value, and 76% of that value comes from beyond year five.
Leak Score 53/100 on 9 of 12 signals
| Metric | APD | PPG |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $287.86 | $107.77 |
| Intrinsic value | $52.43 | $92.86 |
| Margin of safety | -449% | -16% |
| Leak Score | 33/100 (8/12) | 53/100 (9/12) |
| Market cap | $64.1B | $24.0B |
| Revenue growth, 5 years | 6.3% | 2.8% |
| Operating margin | 24.3% | 13.2% |
| Net margin | -0.4% | 9.5% |
| Return on equity | -0.3% | 19.6% |
| Debt to equity | 1.31 | 0.88 |
| P/E | — | 15.5x |
| Forward P/E | 19.9x | 12.5x |
| P/B | 4.6x | 2.8x |
| Dividend yield | 2.5% | 2.7% |