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Valhi, Inc (VHI) Fair Value & Analysis

Basic Materials · US · Market cap $381M

VI Valhi, Inc logo Valhi, Inc VHI · US
Price$15.89
Fair Value$7.50
Upside-52.8%
Quality41/100
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Expensive Growth
Loss-making · -3.5% net margin
Moderate debt · negative free cash flow
2.39% dividend yield
Trails peers (5/13)
Narrow moat 23/100
Evidence: Low Range $5.04 – $16.24 Share as image

Fair value as of: Jul 22, 2026

From 4 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from $13.83 to $7.50 (−45.8%) since Jun 25, 2026. Share price +16.0% over the past month.

Below-average quality, and screening another 53% overvalued on our models.

What matters now

  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide ($5.04 to $16.24). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

$49.77 $10.43 Fair Value $7.50 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range $10.43 – $49.77 · fair‑value band $5.04 – $16.24 · the $15.89 price screens above the $7.50 fair value. Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Valhi, Inc (VHI) currently trades at $15.89, while our model-based Fair Value estimate is $7.50, implying the stock looks roughly 52.8% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Valhi, Inc generated revenue of $2.1B at a net margin of -3.5%. Revenue grew 4.0% year over year. It earns a return on equity of -5.0%. Net debt stands at $389M. Fundamentals as of Jul 22, 2026

Our scenario range runs from $5.04 (bear case) to $16.24 (bull case); at $15.89, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at -53%, VHI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM $2.50 $3.02 $3.53 70
DDM Multi-Stage $2.50 $3.19 $3.94 61
EV/EBITDA $0.1000 $4.48 $8.85 54
All 4 models by family
Dividend Discount
Gordon GGM $2.50 $3.02 $3.53 70
DDM Multi-Stage $2.50 $3.19 $3.94 61
Multiples
EV/EBITDA $0.1000 $4.48 $8.85 54
Asset-Based
NCAV (Graham) $18.08 $24.22 $36.15 50

Widest divergence: Asset-Based ($24.22) versus Dividend Discount ($3.02). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) $2.1B
Revenue growth (YoY) +4.0%
Net margin -3.5%
Return on equity -5.0%
Free cash flow −$82.1M FY2025
Operating margin 5.4%
More key figures
EPS (TTM) $-2.54
Dividend yield 2.4%
EPS growth (YoY) -88.1%
Net debt $389M FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 38 · Market factors (momentum, volatility) 45

Profitability 18
Margins and returns on capital today
Quality Growth 16
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally.

Full company description

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, paper, fibers and ceramics, decorative laminate, and paper manufacturers. This segment also provides TiO2 under the KRONOS name through agents and distributors. The Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, medical cabinetry security, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, and vending and cash containment machine applications. This segment also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The Real Estate Management and Development segment offers utility services to industrial customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. This segment also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Valhi, Inc reported revenue of $2.1B in FY2025 versus $2.3B in FY2021, a compound −2.5%/yr. Reported net income was −$57.6M in FY2025.

Growth Quality 10/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$2.1B
Latest YoY
−1.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.3%
Avg. growth/yr (38Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Revenue −2.5%/yr
FY21 $2.3B
FY22 $2.2B
FY23 $1.9B
FY24 $2.1B
FY25 $2.1B
Net income
FY21 $127M
FY22 $87.2M
FY23 −$9.9M
FY24 $108M
FY25 −$57.6M

VHI screens 53% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "Valhi, Inc Fair Value". https://www.fairvalue-calculator.com/stock/VHI

Peer Group

Chemicals · 333 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside −53% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) -3% · Bottom 25%
Operating margin (TTM) 5% · Below median
Revenue growth 4% · Above median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.58× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/B 0.37× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
EV/EBITDA 15.0× · Pricier than median
PEG 0.32× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 20 · sector 20
PAST 0 · sector 19
HEALTH 71 · sector 94
DIVIDEND 48 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%
Navin Fluorine International Limited NAVINFLUOR ₹8,650 ₹2,146 -75%

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Frequently asked questions

Is Valhi, Inc (VHI) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of $7.50 versus a price of $15.89, about −53% (overvalued).
What is the fair value of VHI?
Our model-based fair value for Valhi, Inc is $7.50 (as of Jul 22, 2026), built from audited fundamentals. The current price is $15.89.
What is the quality score of VHI?
Valhi, Inc has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Valhi, Inc (VHI)?
Valhi, Inc reported trailing-twelve-month revenue of about $2.1B (latest available figure, as of Jul 22, 2026).
What is the net profit margin of VHI?
The net profit margin of Valhi, Inc is about -3.5%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Valhi, Inc pay a dividend?
Valhi, Inc currently shows a dividend yield of about 2.39% relative to its recent price (as of Jul 22, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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