Is Valhi, Inc. overvalued or undervalued?

As of 7 August 2025, Valhi, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued, given its low P/E ratio of 2, a price-to-book value of 0.40, and an EV to EBITDA ratio of 2.83. In comparison to peers, Westlake Chemical Partners LP has a P/E of 2.42, while Kronos Worldwide, Inc. shows a significantly higher P/E of 10.01, indicating that Valhi, Inc. may be trading at a discount relative to its industry.
Despite the attractive valuation metrics, Valhi, Inc. has struggled in terms of stock performance, with a year-to-date return of -28.47% compared to the S&P 500's 12.22%. This underperformance over multiple periods, including a one-year return of -38.31% versus the S&P 500's 17.14%, reinforces the notion that the stock may be undervalued, presenting a potential opportunity for investors.