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The club was founded on 11 May 1911, as a subdivision of KFUM, the Icelandic YMCA. Later that year its name changed to Valur, which is an Icelandic word for gyrfalcon. In 1930 the club won its first national title, and it has been amongst the best football teams in the country ever since. In 1939 Valur bought the farmland of Hlíðarendi which retains its name even today, where they now have a football field and an indoor arena.

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The grounds at Hlíðarendi were completely renovated in the years between 2004 and 2007 and Valur currently play their home games at Vodafonevöllurinn ("The Vodafone Field"), and the handball games in the new Vodafonehöllin ("The Vodafone Hall"), the first section of the new grounds to be utilised. The new football pitch was used for the first time in the 2008 season.

In June 2007 the club signed a 5-year sponsorship deal with Vodafone.[2]

Note: Flags indicate national team as defined under FIFA eligibility rules. Players may hold more than one non-FIFA nationality.

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