VALVOLINE INC
$34.62
−0.21 (−0.60%) · delayed · Nov 13, 2026
Five-year price
52w $26.21 to $41.08
- Market cap
- $4.4B
- Enterprise value
- $5.4B
- P/E
- 21.1×
- 8.7× on 3y avg EPS
- EV / EBIT
- 14.0×
- FCF yield
- 0.9%
- ROIC
- 21.1%
- Debt / equity
- 3.17
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 15.7%
- ●ROE > 15% (5y avg)5y avg ROE 265.2%
- ●Stable operating marginsMargin volatility 2.7% (σ, 5y)
- ○Earnings convert to cashFCF / net income 26% (5y avg)
- ●Growing revenueRevenue CAGR 5y 18.7%
- ●Shrinking share countDiluted shares -31.4% over 5y
Value
0
- ○P/E below 15P/E 21.1
- ○EV/EBIT below 12EV/EBIT 14.0
- ○FCF yield above 6%FCF yield 0.9%
- ○Price below Graham NumberGraham Number $9.89
- ○P/B below 3P/B 13.0
Safety
20
- ○Debt / equity below 0.5D/E 3.17
- ○Debt payable in < 4 yrs of earningsNet debt $1.0B
- ○Interest coverage > 8xCoverage 7.0x
- ○Current ratio > 1.5Current ratio 0.70
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
43
- ○Adequate size (revenue > $2B)Revenue $1.7B
- ○Strong condition (current ratio ≥ 2)Current ratio 0.70
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 205%
- ●Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 8.7
- ○P/E × P/B ≤ 22.5Product 113.1
Valuation lab
What do you have to believe?
At $34.62, the market is pricing in about 32.3% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $1.0B · 128M shares · 5y revenue CAGR 18.7%
Intrinsic value
$8.27
Price
$34.62
Premium paid
319%
What the price implies
The market is paying for 32.3% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
69% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,929 | 2,084 | 2,285 | 2,390 | 727 | 1,037 | 1,236 | 1,444 | 1,619 | 1,710 |
| Gross profit | 748 | 776 | 806 | 810 | 301 | 432 | 476 | 545 | 619 | 659 |
| Operating income | 396 | 394 | 395 | 398 | 160 | 240 | 220 | 247 | 367 | 390 |
| Operating margin | 20.5% | 18.9% | 17.3% | 16.7% | 22.0% | 23.1% | 17.8% | 17.1% | 22.7% | 22.8% |
| Pre-tax income | 421 | 490 | 332 | 265 | 123 | 260 | 144 | 237 | 284 | 292 |
| Income tax | 148 | 186 | 166 | 57 | 53 | 60 | 35 | 37 | 69 | 78 |
| Net income | 273 | 304 | 166 | 208 | 317 | 420 | 424 | 1,420 | 212 | 211 |
| EPS (diluted) | 1.60 | 1.49 | 0.84 | 1.10 | 1.69 | 2.29 | 2.35 | 8.73 | 1.61 | 1.64 |
| Diluted shares | 170 | 204 | 197 | 189 | 188 | 184 | 180 | 163 | 131 | 129 |
Who owns it