Ever wondered if Vertiv Holdings Co stock is attractive at today’s price? You are not alone, and this is the place to dig into what the numbers and the market are saying about its value.
After a staggering 1,121.5% gain over the last three years and a recent 51.9% surge year-to-date, Vertiv’s share price just jumped 12.5% in the past week. Even so, it has dipped 9.8% over the last month, so there is plenty to unpack about where it is heading.
Vertiv has been making headlines with strategic moves and fresh partnerships, which are propelling investor optimism for its role in next-generation infrastructure. This kind of news flow helps explain the big swings seen in the stock recently and is shaping perceptions as investors look for long-term winners.
The company currently scores just 1 out of 6 on our core valuation checks. This suggests there is more to the story than meets the eye. We will walk through how analysts typically value companies like Vertiv and end the article with a perspective that goes beyond the usual metrics.
Vertiv Holdings Co scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. This approach helps investors understand what the business is really worth based on the money it is expected to generate over time.
For Vertiv Holdings Co, analysts used a 2 Stage Free Cash Flow to Equity model. The company’s latest twelve months Free Cash Flow stands at $1.36 Billion. According to projections, Free Cash Flow is expected to grow steadily over the next decade, reaching about $4.02 Billion by the end of 2029. It is important to note that analyst estimates extend up to five years. Beyond that, numbers are extrapolated to provide a full picture up to ten years ahead.
Based on this model, the estimated intrinsic value per share is $215.55. This calculation implies that Vertiv stock is currently trading at a 16.6% discount, suggesting it is undervalued based on these cash flow projections.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Vertiv Holdings Co is undervalued by 16.6%. Track this in your watchlist or portfolio, or discover 920 more undervalued stocks based on cash flows.
VRT Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Vertiv Holdings Co.
The Price-to-Earnings (PE) ratio is widely used to value profitable companies because it shows how much investors are willing to pay for each dollar of earnings. For businesses generating steady profits like Vertiv Holdings Co, the PE ratio provides a quick comparison to peers and historical standards.
Generally, companies with faster earnings growth or lower risk tend to have higher PE ratios, while those with greater uncertainty or slower growth typically trade at lower multiples. Finding the right benchmark is key, as a “normal” PE varies between sectors and business types.
Vertiv’s current PE ratio stands at 66.45x, which is noticeably higher than both the industry average of 31.02x and the average for its peers at 37.31x. At first glance, this suggests Vertiv is priced at a premium relative to similar companies in the electrical industry.
Simply Wall St’s Fair Ratio for Vertiv is calculated at 62.73x. This proprietary metric offers a further level of analysis beyond basic peer and industry comparisons. It takes into account factors such as Vertiv’s profit margins, future earnings growth expectations, market capitalization, and specific risks unique to the business and its sector, resulting in a more tailored benchmark for fair value.
Comparing the Fair Ratio (62.73x) to Vertiv’s actual PE (66.45x), the stock trades at a small premium. Since the difference is within a reasonable range, the valuation appears to be about right for Vertiv given its current fundamentals and outlook.
Result: ABOUT RIGHT
NYSE:VRT PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply the story you believe about a company: how you see its future, what you expect for revenue and profits, and your estimate of fair value, wrapped up into an actionable forecast.
Narratives connect the dots between a company’s story, the financial numbers you expect, and the fair value that comes out of that forecast. On Simply Wall St, Narratives are easy to create and follow right from the Community page, making professional-level tools accessible to everyone and used by millions of investors globally.
With Narratives, you can decide when to buy or sell Vertiv Holdings Co by comparing the fair value set by your Narrative to the market price. Your Narrative will automatically update as new news or quarterly results are released, so your investment thesis always stays current.
For example, some investors on Simply Wall St currently expect Vertiv’s fair value to be as high as $194.63 if rapid data center growth and margin expansion continue. Others place it as low as $119.00 if operational risks or industry changes slow earnings growth. Narratives spell out these different stories, so you can see exactly what assumptions drive those price targets and decide which fits your outlook best.
Do you think there’s more to the story for Vertiv Holdings Co? Head over to our Community to see what others are saying!
NYSE:VRT Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include VRT.
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