Valhi, Inc.

VHI

Basic MaterialsChemicalsNYSE

$14.55

Market Cap: $411.80M

Valhi, Inc. (VHI) Valuation Summary

Updated May 11, 2026 07:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.64 – $126.02	$35.11	+141.3%
Revenue DCF 10Y	$3.38 – $102.11	$25.70	+76.6%
▸ Trading Multiples
EV/Revenue	$41.53 – $90.83	$48.42	+232.8%

Valuation History

DCF Analysis

Valhi, Inc. (VHI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$25.70

Market Price

$14.55

Upside / Downside

+76.6%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.1% to a target of 13.1% over 5 years, discounted at a WACC of 9.3%, Valhi, Inc. (VHI) has an intrinsic value of $25.70 per share (range: $3.38 – $102.11).

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.4%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

26.3%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,071	-0.3%	2.6%	53	39	60	(57)	490	-449	-429
2027	2,065	-0.3%	5.2%	108	79	59	(65)	-2	76	66
2028	2,014	-2.5%	7.8%	158	116	58	(70)	-14	118	95
2029	1,964	-2.5%	10.5%	206	152	57	(76)	-14	146	107
2030	1,915	-2.5%	13.1%	251	185	55	(81)	-14	173	116
2031	1,885	-1.6%	13.1%	247	182	54	(86)	-8	159	97
2032	1,873	-0.7%	13.1%	245	181	54	(92)	-3	146	82
2033	1,878	0.3%	13.1%	246	181	54	(99)	1	135	69
2034	1,900	1.2%	13.1%	249	183	55	(107)	6	125	59
2035	1,939	2.1%	13.1%	254	187	56	(116)	11	116	50

Enterprise Value Bridge

Sum of PV(FCFF)312

Terminal Value (Gordon Growth at 3.0%)1,888

PV of Terminal Value810

Enterprise Value1,121

(–) Net Debt389

Equity Value732

(÷) Shares Outstanding29

Fair Value per Share$25.70

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$-4	$23	$49	$76	$102
8.3%	$-7	$14	$35	$57	$78
9.3%	$-10	$8	$26	$44	$61
10.3%	$-12	$3	$19	$34	$49
11.3%	$-13	$-0	$13	$27	$40

Current price: $14.55. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Valhi, Inc. (VHI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$35.11

Market Price

$14.55

Upside / Downside

+141.3%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.1% to a target of 13.1% over 5 years, discounted at a WACC of 9.3%, Valhi, Inc. (VHI) has an intrinsic value of $35.11 per share (range: $0.64 – $126.02).

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.4%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

26.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,071	-0.3%	2.6%	53	39	60	(65)	490	-456	-436
2027	2,065	-0.3%	5.2%	108	79	59	(79)	-2	61	53
2028	2,014	-2.5%	7.8%	158	116	58	(92)	-14	97	77
2029	1,964	-2.5%	10.5%	206	152	57	(104)	-14	118	87
2030	1,915	-2.5%	13.1%	251	185	55	(115)	-14	139	93

Enterprise Value Bridge

Sum of PV(FCFF)-126

Terminal Value (Gordon Growth at 3.0%)2,263

PV of Terminal Value1,515

Enterprise Value1,390

(–) Net Debt389

Equity Value1,001

(÷) Shares Outstanding29

Fair Value per Share$35.11

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$8	$38	$67	$97	$126
8.3%	$1	$24	$48	$72	$95
9.3%	$-4	$15	$35	$55	$75
10.3%	$-8	$9	$26	$43	$59
11.3%	$-11	$4	$19	$33	$48

Current price: $14.55. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$48.42

Market Price

$14.55

Upside / Downside

+232.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Valhi, Inc. (VHI) has a fair value of $48.42 based on 5 comparable companies in the Chemicals industry.

EV/Revenue Valuation — Chemicals

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Valhi, Inc.VHI	415	0.4x	0.4x
Tronox Holdings plcTROX	1,343	1.6x	1.5x
Rayonier Advanced Materials Inc.RYAM	617	0.9x	0.8x
AdvanSix Inc.ASIX	546	0.6x	0.6x
Intrepid Potash, Inc.IPI	508	1.4x	2.0x
Hudson Technologies, Inc.HDSN	223	0.8x	0.7x
Industry Median		0.9x	0.8x
(*) Revenue		2,077	2,017
= Enterprise Value		1,871	1,667
(-) Net Debt		389	389
Equity Value		1,482	1,278
(/) Outstanding shares		29	29
Fair Price		$52	$45

Selected Fair Value (avg of trailing + forward)

$48.42

+232.8%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.64 – $126.02

$35.11

+141.3%

Revenue DCF 10Y

$3.38 – $102.11

$25.70

+76.6%

▸ Trading Multiples

EV/Revenue

$41.53 – $90.83

$48.42

+232.8%

DCF Analysis

Valhi, Inc. (VHI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$25.70

Market Price

$14.55

Upside / Downside

+76.6%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.4%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

26.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,071	-0.3%	2.6%	53	39	60	(57)	490	-449	-429
2027	2,065	-0.3%	5.2%	108	79	59	(65)	-2	76	66
2028	2,014	-2.5%	7.8%	158	116	58	(70)	-14	118	95
2029	1,964	-2.5%	10.5%	206	152	57	(76)	-14	146	107
2030	1,915	-2.5%	13.1%	251	185	55	(81)	-14	173	116
2031	1,885	-1.6%	13.1%	247	182	54	(86)	-8	159	97
2032	1,873	-0.7%	13.1%	245	181	54	(92)	-3	146	82
2033	1,878	0.3%	13.1%	246	181	54	(99)	1	135	69
2034	1,900	1.2%	13.1%	249	183	55	(107)	6	125	59
2035	1,939	2.1%	13.1%	254	187	56	(116)	11	116	50

Enterprise Value Bridge

Sum of PV(FCFF)312

Terminal Value (Gordon Growth at 3.0%)1,888

PV of Terminal Value810

Enterprise Value1,121

(–) Net Debt389

Equity Value732

(÷) Shares Outstanding29

Fair Value per Share$25.70

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$-4	$23	$49	$76	$102
8.3%	$-7	$14	$35	$57	$78
9.3%	$-10	$8	$26	$44	$61
10.3%	$-12	$3	$19	$34	$49
11.3%	$-13	$-0	$13	$27	$40

Current price: $14.55. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$48.42

Market Price

$14.55

Upside / Downside

+232.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Valhi, Inc. (VHI) has a fair value of $48.42 based on 5 comparable companies in the Chemicals industry.

EV/Revenue Valuation — Chemicals

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Valhi, Inc.VHI	415	0.4x	0.4x
Tronox Holdings plcTROX	1,343	1.6x	1.5x
Rayonier Advanced Materials Inc.RYAM	617	0.9x	0.8x
AdvanSix Inc.ASIX	546	0.6x	0.6x
Intrepid Potash, Inc.IPI	508	1.4x	2.0x
Hudson Technologies, Inc.HDSN	223	0.8x	0.7x
Industry Median		0.9x	0.8x
(*) Revenue		2,077	2,017
= Enterprise Value		1,871	1,667
(-) Net Debt		389	389
Equity Value		1,482	1,278
(/) Outstanding shares		29	29
Fair Price		$52	$45

Selected Fair Value (avg of trailing + forward)

$48.42

+232.8%