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Valhi, Inc. (VHI) — WACC Analysis

WACC Breakdown

Valhi, Inc. (VHI) has a weighted average cost of capital (WACC) of 9.9%. The cost of equity is 9.5%, derived from a beta of 1.03 and a risk-free rate of 5.2%. The after-tax cost of debt is 10.1%. The capital structure is 40.8% equity and 59.2% debt.

Interpretation

A WACC of 9.9% is moderate, reflecting the market's balanced risk assessment of Valhi, Inc..

Investors can compare VHI's WACC of 9.9% against industry peers to gauge its relative financing costs. A beta of 1.03 reflects the stock's volatility relative to the broader market.

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VALUATION

VHI WACC: 9.89% for Valhi, Inc.

Current inputs imply a 9.53% cost of equity and a 10.13% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Valhi, Inc. Common Stock (VHI) WACC Results
Weighted Average Cost of Capital
9.89%
Cost of Equity
9.53%
Risk-Free Rate5.22%
Beta1.03
Market Risk Premium4.23%
Cost of Debt
10.13%
Pre-Tax Cost of Debt10.13%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 40.81%($404.99M)
Debt: 59.19%($587.50M)
Equity Component
3.89%
40.81% × 9.53%
Debt Component
6.00%
59.19% × 10.13%

Valhi, Inc. (VHI) WACC in context

Valhi, Inc. (VHI) currently screens with an estimated WACC of 9.89%. That blends a 9.53% cost of equity, a 10.13% pre-tax cost of debt, and a 40.81% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What VHI WACC implies

A 9.89% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates VHI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.03 and equity accounts for 40.81% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.