it shows what you would have FOR THOSE TROOPS ONLY if you had valahir in your party
the adjust by faction is per troop's original faction, so if a troop doesn't match that faction number, the morale penalty/bonus does not apply TO THAT TROOP
This is how its possible to have most of your troops with "excellent" morale and still have some leave overnight; each troop has faction bonus/ penalty computed independently of the next troop, and they all have some faction they belong to, even if that faction is only "bandit" or some other minor factions (of which there are > 10 minor factions and 11 major factions, in standard Perisno .76/.76r2/.77)