Latest Ratios: P/E Ratio -8.1x · EV/EBITDA 17.2x · ROE -4.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $462M | $343M | $667M | $433M | $627M | $819M | $433M | $640M | $660M | $2.1B | $1.2B |
| Enterprise Value | $851M | $732M | $902M | $595M | $729M | $793M | $729M | $939M | $961M | $2.7B | $2.0B |
| P/E Ratio → | -8.08 | — | 6.17 | — | 6.96 | 6.45 | 7.84 | 8.19 | 2.52 | 10.11 | — |
| P/S Ratio | 0.22 | 0.17 | 0.32 | 0.23 | 0.28 | 0.36 | 0.23 | 0.34 | 0.36 | 1.12 | 0.76 |
| P/B Ratio | 0.34 | 0.25 | 0.48 | 0.34 | 0.48 | 0.71 | 0.43 | 0.65 | 0.67 | 2.75 | 2.66 |
| P/FCF | — | — | 50.89 | — | — | 2.07 | 5.00 | 5.45 | 6.34 | 11.36 | 61.00 |
| P/OCF | — | — | 15.15 | 111.00 | 17.97 | 1.78 | 2.85 | 3.61 | 3.99 | 8.14 | 14.83 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.35 | 0.43 | 0.31 | 0.33 | 0.35 | 0.39 | 0.49 | 0.53 | 1.45 | 1.27 |
| EV / EBITDA | 17.20 | 14.80 | 3.88 | 58.90 | 2.98 | 2.42 | 3.70 | 5.81 | 2.24 | 1.18 | 14.87 |
| EV / EBIT | — | 51.95 | 3.07 | 67.60 | 3.69 | 2.73 | 5.33 | 7.05 | 3.29 | 7.75 | 20.35 |
| EV / FCF | — | — | 68.88 | — | — | 2.01 | 8.40 | 8.00 | 9.23 | 14.63 | 102.50 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.2% | 14.2% | 20.2% | 12.8% | 22.1% | 25.3% | 22.3% | 22.9% | 33.5% | 32.0% | 18.6% |
| Operating Margin | -0.8% | -0.8% | 7.9% | -2.3% | 8.4% | 11.7% | 6.9% | 5.6% | 20.4% | 119.0% | 4.2% |
| Net Profit Margin | -2.8% | -2.8% | 5.1% | -0.5% | 3.9% | 5.5% | 3.0% | 2.6% | 14.4% | 11.0% | -1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -4.2% | -4.2% | 8.2% | -0.8% | 7.1% | 11.7% | 5.6% | 5.0% | 29.9% | 34.3% | -3.3% |
| ROA | -2.1% | -2.1% | 3.9% | -0.4% | 3.0% | 4.3% | 1.9% | 1.8% | 9.3% | 7.8% | -0.6% |
| ROIC | -0.8% | -0.8% | 8.2% | -2.3% | 11.0% | 16.5% | 7.5% | 6.2% | 20.9% | 127.9% | 3.9% |
| ROCE | -0.8% | -0.8% | 7.6% | -1.9% | 7.6% | 10.5% | 5.1% | 4.4% | 15.0% | 94.7% | 3.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.45 | 0.45 | 0.42 | 0.45 | 0.44 | 0.58 | 0.81 | 0.84 | 0.81 | 1.36 | 2.17 |
| Debt / EBITDA | 12.36 | 12.36 | 2.51 | 56.34 | 2.37 | 2.05 | 4.13 | 5.09 | 1.87 | 0.45 | 7.22 |
| Net Debt / Equity | — | 0.29 | 0.17 | 0.13 | 0.08 | -0.02 | 0.29 | 0.30 | 0.30 | 0.79 | 1.81 |
| Net Debt / EBITDA | 7.86 | 7.86 | 1.01 | 16.04 | 0.42 | -0.08 | 1.50 | 1.85 | 0.70 | 0.26 | 6.02 |
| Debt / FCF | — | — | 17.99 | — | — | -0.07 | 3.41 | 2.55 | 2.89 | 3.27 | 41.51 |
| Interest Coverage | 0.25 | 0.25 | 5.89 | 0.31 | 7.09 | 8.93 | 3.78 | 3.26 | 5.24 | 5.95 | 1.68 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.80 | 2.80 | 2.26 | 2.91 | 3.23 | 3.61 | 4.57 | 4.42 | 4.01 | 3.81 | 2.85 |
| Quick Ratio | 1.33 | 1.33 | 1.19 | 1.73 | 1.93 | 2.62 | 2.88 | 2.80 | 2.54 | 2.61 | 1.62 |
| Cash Ratio | 0.50 | 0.50 | 0.54 | 0.91 | 1.12 | 1.51 | 1.64 | 1.63 | 1.43 | 1.32 | 0.56 |
| Asset Turnover | — | 0.79 | 0.75 | 0.70 | 0.78 | 0.76 | 0.64 | 0.68 | 0.67 | 0.65 | 0.64 |
| Inventory Turnover | 2.70 | 2.70 | 2.45 | 2.81 | 2.70 | 3.74 | 2.67 | 2.80 | 2.35 | 3.21 | 3.53 |
| Days Sales Outstanding | — | 56.04 | 56.84 | 64.65 | 46.30 | 64.17 | 67.55 | 63.32 | 67.70 | 71.04 | 55.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 2.6% | 1.4% | 2.1% | 1.4% | 1.1% | 3.1% | 4.2% | 4.1% | 1.3% | 2.3% |
| Payout Ratio | — | — | 8.4% | — | 10.3% | 7.1% | 24.6% | 55.1% | 10.3% | 13.1% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 16.2% | — | 14.4% | 15.5% | 12.8% | 12.2% | 39.7% | 9.9% | — |
| FCF Yield | — | — | 2.0% | — | — | 48.3% | 20.0% | 18.3% | 15.8% | 8.8% | 1.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.7% | 0.6% | 0.2% | 0.2% | 0.5% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.0% | 2.6% | 1.4% | 2.8% | 2.1% | 1.3% | 3.4% | 4.7% | 4.1% | 1.3% | 2.3% |
| Shares Outstanding | — | $29M | $29M | $29M | $29M | $29M | $29M | $29M | $29M | $28M | $28M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VHI stock.
Valhi, Inc.'s current P/E ratio is -8.1x. The historical average is 11.0x.
Valhi, Inc.'s current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Valhi, Inc.'s return on equity (ROE) is -4.2%. The historical average is 8.6%.
Based on historical data, Valhi, Inc. is trading at a P/E of -8.1x. Compare with industry peers and growth rates for a complete picture.
Valhi, Inc.'s current dividend yield is 1.96%.
Valhi, Inc. has 14.2% gross margin and -0.8% operating margin.
Valhi, Inc.'s Debt/EBITDA ratio is 12.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Extreme working capital volatility
Metrics are mathematically derived from official filings.
Deep Value Pricing Amid Cyclical Recovery
Valhi trades at a significant discount to peers with a P/B of 0.37 and P/S of 0.24, suggesting the market is pricing in a severe cyclical downturn that has not fully materialized in its recent financial performance.
The forward P/E of 5.14 and forward EV/EBITDA of 3.83 indicate the market expects a sharp earnings recovery, yet the current P/E of -8.83 reflects the trailing losses from the 2025 trough. This valuation disconnect, especially versus peers like Huntsman (P/B 0.56) and Chemours (P/B 9.18), implies investors are either skeptical of the recovery's sustainability or are applying a deep cyclical discount to the entire chemical sector.
Margin Recovery Driven by Cyclical Rebound
Gross margin expanded to 19.8% in 2026Q2 from a trough of 6.9% in 2025Q4, driving a swing to a 5.9% net margin, which suggests the company's core earning power is re-emerging as industry conditions improve.
The operating margin recovery to 4.3% from -8.7% demonstrates strong operating leverage, as SG&A costs appear relatively fixed. However, the net margin remains below the 10.8% peak seen in 2024Q3, indicating that the full benefit of the cyclical upturn has not yet flowed to the bottom line, possibly due to higher interest or tax expenses.
Returns on Capital Just Turning Positive
ROIC has improved to 1.1% in 2026Q2 from a negative -1.8% in 2025Q4, but remains well below the 2.8% peak in 2024Q4, indicating the business is only beginning to generate returns above its cost of capital.
The modest ROIC recovery is driven by margin expansion rather than asset efficiency, as asset turnover has only slightly improved to 0.23 from 0.18. This suggests the company's capital base is still underutilized, and achieving a sustainable return above its weighted average cost of capital will require both continued margin improvement and better asset productivity.
Working Capital Swings Dominate Cash Cycle
The cash conversion cycle shortened to 115 days in 2026Q2 from a peak of 177 days in 2025Q3, primarily due to a reduction in days inventory outstanding, which signals improving inventory management as demand recovers.
Despite the improvement, the CCC remains highly volatile, having swung from 135 days in 2024Q2 to 177 days and back. This volatility, driven by large swings in DIO and DPO, indicates that working capital is a major source of cash flow unpredictability and suggests the company has limited control over its cash conversion cycle in a cyclical market.
Conservative Leverage Provides Cyclical Buffer
Valhi's debt-to-equity ratio of 0.43 and interest coverage of 4.22x in 2026Q2 indicate a comfortable leverage position, especially compared to peers like Huntsman (D/E 0.92) and Chemours (D/E 18.27).
The interest coverage ratio has recovered sharply from a concerning 0.49x in 2025Q3, suggesting the company's debt serviceability has improved dramatically with the return to profitability. This conservative balance sheet provides a crucial buffer against another cyclical downturn, allowing the company to avoid the financial distress seen at more leveraged peers.
The Misleading Signal of Low P/B
The price-to-book ratio of 0.37 is the most commonly misapplied metric for Valhi, as it obscures the significant goodwill impairment risk and the capital-intensive nature of its chemical manufacturing assets.
Investors often interpret a P/B below 1.0 as a deep value signal, but for Valhi, this metric is distorted by $382.3M of goodwill (15% of assets) and $732.4M of PP&E. In a cyclical downturn, the book value could be written down significantly, making the current P/B appear artificially low. A more appropriate metric would be EV/EBITDA, which better reflects the company's cash-generating ability and capital structure.