One-glance verdict
Overvalued
$112.70 our estimate vs market $275.17
Wall Street consensus: $337.50 (199.5% higher than our fair-value estimate)
144% above our estimate, beyond the bull case
Fundamentals snapshot
Vertiv Holdings Co
VRT · NYQ · Industrials · Electrical Equipment & Parts
Current price
$275.17
52-week range
$118.70 - $379.94
Market cap
$105.94B
Balance sheet
Healthy
22.02x Strong cushion
Net debt $227.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 12.2% last year.
- Reward Returns 43.9% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
Vertiv Holdings Co
Vertiv sells the crucial power and cooling systems that prevent data centers, the buildings that power the internet and AI, from overheating or losing electricity. The company makes money selling this hardware and also by providing ongoing maintenance services, which creates recurring revenue (predictable sales from service contracts). This matters because as demand for powerful technologies like artificial intelligence grows, so does the need for Vertiv's specialized equipment to keep everything running smoothly.
How the company got here
Vertiv's story begins with the Liebert Corporation, founded in 1946 to create specialized cooling systems for the new world of mainframe computers. For decades, it operated as a division of Emerson Electric called Emerson Network Power. In 2016, a private investment firm named Platinum Equity bought the division for over $4 billion and renamed it Vertiv. A key turning point came in early 2020 when Vertiv became a publicly traded company on the New York Stock Exchange through a merger with a special purpose acquisition company (a 'blank check' company created to buy another business and take it public).
What it actually does
Think of a massive data center that powers things like artificial intelligence, online banking, and video streaming; Vertiv makes the essential equipment that keeps it running. The company provides the critical, behind-the-scenes hardware for power and cooling, like uninterruptible power supply (UPS) systems that act as a backup battery during an outage, and advanced cooling systems that prevent the powerful computers from overheating. It also provides the racks that hold the computer servers and software to manage and monitor this entire physical infrastructure. Essentially, Vertiv sells the crucial support systems that ensure the digital world stays on, 24/7.
Products
This is the larger of Vertiv's two main business lines, making up the majority of its sales. It involves the design, manufacturing, and sale of the physical hardware that data centers and communication networks need to function. This includes a wide range of power equipment, from large-scale backup power systems to smaller units that manage power flow within a server rack. It also includes sophisticated thermal management, or cooling, systems, which are increasingly important as artificial intelligence (AI) requires more and more powerful, heat-generating computer chips.
Services
This segment, while smaller than the product side, is a significant and recurring source of income for the company. After Vertiv's equipment is installed, this part of the business provides ongoing support to keep it running smoothly. This includes preventative maintenance (regular check-ups to prevent problems), installation, performance assessments, and remote monitoring. Think of it like the service and repair department for a car; customers pay for expert help to maintain and optimize their critical infrastructure over its entire lifespan.
What management is betting on now
The company's main focus is on the explosive growth of artificial intelligence (AI) and the massive data centers required to support it. Management is investing heavily in developing advanced liquid cooling technologies, as traditional air cooling is not enough for the powerful, heat-intensive computer chips used in AI. They are also focused on creating integrated and modular solutions, which are like pre-built, all-in-one data center systems that can be deployed much faster for customers. Another key priority is growing their high-margin (meaning, very profitable) services business by securing long-term contracts to maintain the growing amount of Vertiv equipment being installed worldwide.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$341.80M
FY2024 Q4
$364.50M
FY2025 Q1
$266.80M
FY2025 Q2
$277.90M
FY2025 Q3
$463.50M
FY2025 Q4
$885.60M
FY2026 Q1
$654.20M
FY2026 Q2
$926.50M
Revenue
$3.27B
Net income
$497.80M
Diluted EPS
1.27
Operating cash flow
$1.10B
Free cash flow
$926.50M
Fetching…
Sources
Revenue
$2.65B
Net income
$390.10M
Diluted EPS
0.99
Operating cash flow
$766.80M
Free cash flow
$654.20M
Fetching…
Sources
Revenue
$2.88B
Net income
$445.60M
Diluted EPS
1.14
Operating cash flow
$978.90M
Free cash flow
$885.60M
Fetching…
Sources
Revenue
$2.68B
Net income
$398.50M
Diluted EPS
1.02
Operating cash flow
$508.70M
Free cash flow
$463.50M
Fetching…
Sources
Revenue
$2.64B
Net income
$324.20M
Diluted EPS
0.83
Operating cash flow
$322.90M
Free cash flow
$277.90M
Fetching…
Sources
Revenue
$2.04B
Net income
$164.50M
Diluted EPS
0.42
Operating cash flow
$303.30M
Free cash flow
$266.80M
Fetching…
Sources
Revenue
$2.35B
Net income
$147.00M
Diluted EPS
0.38
Operating cash flow
$425.20M
Free cash flow
$364.50M
Fetching…
Sources
Revenue
$2.07B
Net income
$176.60M
Diluted EPS
0.46
Operating cash flow
$378.20M
Free cash flow
$341.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $112.70 vs current price $275.17
Wall Street consensus is the average analyst price target: $337.50 (199.5% higher than our fair-value estimate).
Our most-likely fair value is $112.70 a share — about 59.0% below today's price of $275.17, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $227.6M. Interest coverage 22.0x.
Net debt
$227.60M
Interest coverage
22.02x
Vertiv Holdings Co's profit covers its interest bill about 22.0 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
VRT
BASELINE
Vertiv Holdings Co
Total debt $3.34B Interest coverage 22.02x This is the baseline the peer rows are being compared against.
Total debt $21.33B Interest coverage 21.61x -2% vs VRT Has roughly the same debt cushion as VRT.
Total debt $23.98B Interest coverage 12.98x -41% vs VRT Carries about 1.7x less debt cushion than VRT.
Total debt $13.80B Interest coverage 9.13x -59% vs VRT Carries about 2.4x less debt cushion than VRT.
Total debt $9.48B Interest coverage 12.46x -43% vs VRT Carries about 1.8x less debt cushion than VRT.
What you should know
The case for and against VRT
3 Rewards
0 Risks
Rewards
-
Revenue grew 12.2% last year.
-
Returns 43.9% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
62.26x
Forward P/E
30.29x
P/B
24.89x
P/S
9.23x
EV/EBITDA
39.63x
PEG ratio
1.24x
Profitability
How much profit each dollar creates
Gross margin
38.0%
Operating margin
20.4%
Net margin
15.1%
ROE
43.9%
ROA
10.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
1.38x
Quick ratio
0.95x
Total debt
$3.34B
Total cash
$3.11B
Growth
How the business has been compounding
Revenue TTM
$11.48B
Revenue 5Y CAGR
19.6%
EPS TTM
4.42
EPS 5Y CAGR
340.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.35B
Free CF TTM
$1.89B
FCF margin
16.5%
Dividend
Shareholder payout
Yield
0.1%
Payout ratio
5.1%
Last ex-div date
2026-06-15