Valhi, Inc. (VHI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+150.6%

$37.33

vs $14.90 price

Levered DCF

$7.26

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.77

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-5.97×	6.17×	-36.17×	6.96×	6.45×	7.84×	8.19×	2.52×
P/B	0.34×	0.64×	0.46×	0.65×	0.99×	0.63×	1×	1.04×
P/S	0.17×	0.32×	0.23×	0.28×	0.36×	0.23×	0.34×	0.36×
EV / EBITDA	9.1×	2.5×	9.46×	2.85×	2.27×	3.55×	4.94×	2.74×
Gross margin	14.2%	20.2%	12.8%	22.1%	25.3%	22.3%	22.9%	33.5%
Operating margin	-0.8%	7.9%	-2.3%	8.4%	11.7%	6.9%	5.6%	20.4%
Net margin	-2.8%	5.1%	-0.5%	3.9%	5.5%	3.0%	2.6%	14.4%
Current ratio	2.8×	2.26×	2.91×	3.23×	3.61×	4.57×	4.42×	4.01×
Debt / equity	0.6×	0.56×	0.61×	0.61×	0.81×	1.19×	1.29×	1.26×
Interest coverage	-0.3×	3.32×	-1.55×	6.68×	8.26×	3.55×	2.62×	6.66×
Dividend yield	2.6%	1.4%	2.1%	1.4%	1.1%	3.1%	4.2%	4.1%
Payout ratio	-15.8%	8.4%	-91.9%	10.3%	7.1%	24.6%	55.1%	10.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-5.6%	10.4%	-1.1%	9.1%	15.3%	8.1%	7.7%	41.3%
Return on invested capital	-0.8%	4.9%	0.5%	6.2%	8.1%	4.2%	3.2%	15.7%
Return on assets	-2.2%	3.9%	-0.4%	3.1%	4.2%	1.9%	1.8%	9.7%
Free cash flow yield	-23.9%	2.0%	-10.3%	-5.2%	48.3%	20.0%	18.3%	15.8%
Earnings yield	-16.8%	16.2%	-2.3%	13.9%	15.5%	12.7%	7.7%	39.7%
Enterprise value	$732.4M	$902.3M	$594.9M	$729.2M	$793.5M	$728.7M	$938.6M	$960.7M
Net debt / EBITDA	4.83×	0.65×	2.58×	0.4×	-0.07×	1.44×	1.57×	0.86×
Cash conversion cycle (days)	144	152	138	139	129	174	157	190