Valhi, Inc.

VHI

Basic MaterialsChemicalsNYSE

$13.80

Market Cap: $390.57M

Valhi, Inc. (VHI) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$3.32 – $126.90	$34.58	+150.1%
Revenue DCF 10Y	$2.63 – $102.58	$25.10	+81.5%
▸ Trading Multiples
EV/Revenue	$49.86 – $104.37	$50.21	+263.1%

Valuation History

DCF Analysis

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

REVENUE DCF FAIR VALUE

$25.10

Market Price

$13.80

Upside / Downside

+81.9%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.1% to a target of 12.9% over 5 years, discounted at a WACC of 9.2%, Valhi, Inc. (VHI) has an intrinsic value of $25.10 per share (range: $2.63 – $102.58).

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

12.9%

WACC

9.2%

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%	2.5%	53	39	60	(57)	490	-449	-430
2027	2,065	-0.3%	5.1%	106	78	59	(65)	-2	75	65
2028	2,014	-2.5%	7.7%	155	115	58	(70)	-14	117	93
2029	1,964	-2.5%	10.3%	203	149	57	(76)	-14	144	106
2030	1,915	-2.5%	12.9%	247	182	55	(81)	-14	170	114
2031	1,885	-1.6%	12.9%	243	179	54	(86)	-8	156	96
2032	1,873	-0.7%	12.9%	242	178	54	(92)	-3	143	81
2033	1,878	0.3%	12.9%	242	179	54	(99)	1	132	68
2034	1,900	1.2%	12.9%	245	181	55	(107)	6	122	58
2035	1,939	2.1%	12.9%	250	184	56	(116)	11	113	49

Enterprise Value Bridge

Sum of PV(FCFF)300

Terminal Value (Gordon Growth at 3.0%)1,862

PV of Terminal Value804

Enterprise Value1,104

(–) Net Debt389

Equity Value715

(÷) Shares Outstanding29

Fair Value per Share$25.10

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.2%	$-5	$22	$49	$76	$103
8.2%	$-9	$13	$35	$56	$78
9.2%	$-11	$7	$25	$43	$61
10.2%	$-13	$3	$18	$34	$49
11.2%	$-14	$-1	$13	$26	$40

Current price: $13.80. 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

$34.58

Market Price

$13.80

Upside / Downside

+150.6%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.1% to a target of 12.9% over 5 years, discounted at a WACC of 9.2%, Valhi, Inc. (VHI) has an intrinsic value of $34.58 per share (range: $3.32 – $126.90).

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

12.9%

WACC

9.2%

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%	2.5%	53	39	60	(65)	490	-457	-437
2027	2,065	-0.3%	5.1%	106	78	59	(79)	-2	60	52
2028	2,014	-2.5%	7.7%	155	115	58	(92)	-14	95	76
2029	1,964	-2.5%	10.3%	203	149	57	(104)	-14	116	85
2030	1,915	-2.5%	12.9%	247	182	55	(115)	-14	136	91

Enterprise Value Bridge

Sum of PV(FCFF)-132

Terminal Value (Gordon Growth at 3.0%)2,243

PV of Terminal Value1,507

Enterprise Value1,375

(–) Net Debt389

Equity Value986

(÷) Shares Outstanding29

Fair Value per Share$34.58

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.2%	$7	$37	$67	$97	$127
8.2%	$-1	$24	$48	$72	$96
9.2%	$-5	$15	$35	$55	$75
10.2%	$-9	$8	$25	$42	$59
11.2%	$-12	$3	$18	$33	$48

Current price: $13.80. 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

$50.21

Market Price

$13.80

Upside / Downside

+263.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Valhi, Inc. (VHI) has a fair value of $50.21 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	393	0.4x	0.4x
Tronox Holdings plcTROX	1,465	1.7x	1.6x
AdvanSix Inc.ASIX	662	0.7x	0.7x
Rayonier Advanced Materials Inc.RYAM	655	0.9x	0.9x
Intrepid Potash, Inc.IPI	563	1.6x	2.2x
Hudson Technologies, Inc.HDSN	251	0.9x	0.8x
Industry Median		0.9x	0.9x
(*) Revenue		2,077	2,017
= Enterprise Value		1,925	1,715
(-) Net Debt		389	389
Equity Value		1,536	1,326
(/) Outstanding shares		29	29
Fair Price		$54	$47

Selected Fair Value (avg of trailing + forward)

$50.21

+263.8%

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

$3.32 – $126.90

$34.58

+150.1%

Revenue DCF 10Y

$2.63 – $102.58

$25.10

+81.5%

▸ Trading Multiples

EV/Revenue

$49.86 – $104.37

$50.21

+263.1%

DCF Analysis

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

REVENUE DCF FAIR VALUE

$25.10

Market Price

$13.80

Upside / Downside

+81.9%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.1%

Target Operating Margin

12.9%

WACC

9.2%

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%	2.5%	53	39	60	(57)	490	-449	-430
2027	2,065	-0.3%	5.1%	106	78	59	(65)	-2	75	65
2028	2,014	-2.5%	7.7%	155	115	58	(70)	-14	117	93
2029	1,964	-2.5%	10.3%	203	149	57	(76)	-14	144	106
2030	1,915	-2.5%	12.9%	247	182	55	(81)	-14	170	114
2031	1,885	-1.6%	12.9%	243	179	54	(86)	-8	156	96
2032	1,873	-0.7%	12.9%	242	178	54	(92)	-3	143	81
2033	1,878	0.3%	12.9%	242	179	54	(99)	1	132	68
2034	1,900	1.2%	12.9%	245	181	55	(107)	6	122	58
2035	1,939	2.1%	12.9%	250	184	56	(116)	11	113	49

Enterprise Value Bridge

Sum of PV(FCFF)300

Terminal Value (Gordon Growth at 3.0%)1,862

PV of Terminal Value804

Enterprise Value1,104

(–) Net Debt389

Equity Value715

(÷) Shares Outstanding29

Fair Value per Share$25.10

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.2%	$-5	$22	$49	$76	$103
8.2%	$-9	$13	$35	$56	$78
9.2%	$-11	$7	$25	$43	$61
10.2%	$-13	$3	$18	$34	$49
11.2%	$-14	$-1	$13	$26	$40

Current price: $13.80. 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

$50.21

Market Price

$13.80

Upside / Downside

+263.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Valhi, Inc. (VHI) has a fair value of $50.21 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	393	0.4x	0.4x
Tronox Holdings plcTROX	1,465	1.7x	1.6x
AdvanSix Inc.ASIX	662	0.7x	0.7x
Rayonier Advanced Materials Inc.RYAM	655	0.9x	0.9x
Intrepid Potash, Inc.IPI	563	1.6x	2.2x
Hudson Technologies, Inc.HDSN	251	0.9x	0.8x
Industry Median		0.9x	0.9x
(*) Revenue		2,077	2,017
= Enterprise Value		1,925	1,715
(-) Net Debt		389	389
Equity Value		1,536	1,326
(/) Outstanding shares		29	29
Fair Price		$54	$47

Selected Fair Value (avg of trailing + forward)

$50.21

+263.8%