Valhi, Inc. engages in the chemicals, component products, waste management, and real estate businesses worldwide. The company was founded in 1932 and is based in Dallas, Texas.
VHI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VHI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Valhi Inc ranked in the 91th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2279.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Valhi Inc ended up being:
27% of the company's capital comes from equity, which is greater than only 12.58% of stocks in our cash flow based forecasting set.
Valhi Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 12.63% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Valhi Inc has a reliance on debt greater than 91.24% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Valhi Inc? See CMC, ZEUS, GMS, RS, and UNVR.
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Valhi, Inc. (NYSE: VHI) announced that at its annual stockholder meeting held today, its stockholders approved a reverse stock split of the company’s common stock and that, following the stockholder approval, its board of directors established a reverse stock split ratio of 1-for-12. The reverse stock split is expected to occur on June 1, 2020, with trading to begin on a split-adjusted basis on the New York Stock Exchange (NYSE) at the market open on June 2, 2020. Trading in the common stock will continue on the NYSE under the symbol “VHI” but the security will be assigned a new CUSIP number.
Valhi, Inc. (NYSE: VHI) announced today that, as disclosed in its proxy statement filed with the Securities and Exchange Commission on April 7, 2020, its stockholders will vote on a proposal to approve a reverse stock split of Valhi’s common stock at a reverse stock split ratio of 1-for-8, 1-for-10 or 1-for-12, as determined by its board of directors following stockholder approval, at its annual meeting of stockholders scheduled to be held on May 28, 2020. As disclosed in the proxy statement, Valhi’s controlling stockholder has indicated its intention to have its shares represented at the meeting and to vote its shares in favor of the reverse stock split proposal, in which case the proposal will be approved. The company expects to effect the reverse stock split promptly following the...