One-glance verdict
Overvalued
$138.02 our estimate vs market $249.05
Wall Street consensus: $338.15 (145.0% higher than our fair-value estimate)
80% above our estimate, beyond the bull case
Fundamentals snapshot
Vertiv Holdings Co
VRT · NYQ · Industrials · Electrical Equipment & Parts
Current price
$249.05
52-week range
$133.85 - $379.94
Market cap
$95.88B
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 makes the essential hardware, like cooling systems and power supplies, for data centers (the buildings full of computers that run the internet and AI). The company earns money by selling this physical equipment and offering services to keep it all running smoothly for its customers. As the world's demand for data-heavy services like artificial intelligence grows, so does the need for Vertiv's products to keep these powerful computers from overheating or losing power.
How the company got here
Vertiv's story begins with a company called Liebert Corporation, founded in 1946, which specialized in precision cooling for early computer rooms. For many years, it was part of a larger industrial company, Emerson Electric, under the name Emerson Network Power. A major turning point came in 2016 when a private investment firm bought this division and renamed it Vertiv, making it a standalone business focused on digital infrastructure. In 2020, Vertiv became a publicly traded company on the New York Stock Exchange after merging with a special purpose acquisition company (a shell company set up to buy another business and take it public).
What it actually does
Think of Vertiv as the company that builds and maintains the life-support systems for the internet and the digital world. It makes essential equipment that provides power and cooling for data centers (the huge buildings full of computers that run services like AI, online banking, and video streaming) and communication networks. Their products ensure that these critical systems have a steady flow of electricity and don't overheat, which is crucial because any downtime (a period when a system is unavailable) can be very expensive for their customers. Vertiv provides the foundational hardware that keeps our digital lives 'always on'.
Products
This is the largest part of Vertiv's business, where it makes money by selling physical equipment. This includes things like uninterruptible power supplies or UPS (essentially giant, sophisticated backup batteries that kick in instantly if the main power goes out) and thermal management systems (advanced air conditioners and liquid cooling units that prevent servers from overheating). They also sell racks to hold the computer equipment, and systems that distribute power efficiently within a data center. Customers for these products are businesses building or upgrading data centers and communication networks.
Services
Beyond just selling the hardware, Vertiv also makes money by providing support for that equipment over its entire life. This is a smaller but important part of the company that generates a steady, predictable income. This includes installing and testing new equipment, performing regular preventative maintenance, and offering remote monitoring to spot problems before they cause an outage. Think of it like a service contract for a car; customers pay Vertiv to make sure their critical power and cooling systems are always in top working condition.
What management is betting on now
Management's biggest bet is on the explosive growth of artificial intelligence (AI). AI requires immense computing power, which in turn generates a huge amount of heat, pushing traditional cooling methods to their limits. Vertiv is investing heavily in expanding its factories to build more of the advanced liquid cooling and high-density power systems that these new AI data centers require. The strategy is to become the go-to partner for companies building this next generation of digital infrastructure, selling them integrated packages of power, cooling, and services to help them get up and running faster.
Price history
How the share price has moved
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Loading price history…
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 $138.02 vs current price $249.05
Wall Street consensus is the average analyst price target: $338.15 (145.0% higher than our fair-value estimate).
Our most-likely fair value is $138.02 a share — about 44.6% below today's price of $249.05, 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 $23.88B 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)
56.47x
Forward P/E
27.30x
P/B
20.15x
P/S
8.35x
EV/EBITDA
35.93x
PEG ratio
0.84x
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
4.41
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
2026-09-14