If you are wondering whether Vertiv Holdings Co is still a smart buy after its massive run, or if the easy money has already been made, you are not alone. This breakdown focuses squarely on what the current price really implies about its value.
Even after a rough patch recently, with the stock down 14.7% over the last week and 7.0% over the last month, Vertiv is still up 36.3% year to date and an eye catching 1131.2% over three years.
Those swings have come as Vertiv continues to ride long term themes such as data center build outs, AI infrastructure demand, and power management upgrades across big tech and cloud customers. The market is constantly repricing how durable those tailwinds are, which is why the stock can feel both unstoppable and fragile at the same time.
On our numbers, Vertiv scores a 3/6 valuation check. This suggests it looks undervalued on some measures but stretched on others. We will unpack what different valuation approaches say about the stock today and then finish with a more complete way to think about what Vertiv is really worth.
A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future and then discounting those cash flows back to today using a required rate of return.
For Vertiv Holdings Co, the model starts with last twelve months free cash flow of about $1.36 billion and uses analyst forecasts for the next few years, then extrapolates further out. On this basis, Simply Wall St projects free cash flow rising to around $4.03 billion by 2029, with further growth implied over the following years as data center and AI infrastructure spending expand.
Aggregating and discounting these projected cash flows using a 2 Stage Free Cash Flow to Equity approach yields an estimated intrinsic value of roughly $215.17 per share. Compared with the current share price, this implies the stock is about 25.0% undervalued, which suggests the market is not fully pricing in Vertiv’s expected cash generation.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Vertiv Holdings Co is undervalued by 25.0%. Track this in your watchlist or portfolio, or discover 907 more undervalued stocks based on cash flows.
VRT Discounted Cash Flow as at Dec 2025
For profitable companies like Vertiv, the price to earnings, or PE, ratio is a useful way to check whether investors are paying a reasonable price for each dollar of current earnings. In simple terms, faster and more reliable earnings growth, and lower perceived risk, usually justify a higher PE multiple, while slower growth and higher risk argue for a lower one.
Story Continues
Vertiv currently trades on a PE of about 59.6x, which is well above both the Electrical industry average of roughly 31.6x and the peer group average of around 37.6x. That premium suggests investors are already baking in strong growth and durable competitive advantages.
Simply Wall St’s Fair Ratio framework refines this comparison by estimating what PE multiple Vertiv should trade on, given its specific earnings growth outlook, profitability, industry, market cap and risk profile. For Vertiv, the Fair Ratio comes out at about 58.4x, only slightly below the current PE. This indicates that, while the stock screens expensive on simple peer and industry comparisons, it looks broadly in line with what its fundamentals and risk profile warrant.
Result: ABOUT RIGHT
NYSE:VRT PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1448 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect the story you believe about a company with the numbers behind its future revenue, earnings, margins and, ultimately, its fair value.
A Narrative on Simply Wall St is your own structured storyline for a company, where you spell out what you think will drive the business, translate that into a financial forecast, and then see the fair value those assumptions imply, all in one place on the Community page used by millions of investors.
Because each Narrative links your view of Vertiv’s data center and AI opportunity, competitive position and risks to explicit forecasts and a fair value estimate, it becomes a tool to help you compare that fair value to the current price and consider whether the stock looks attractive or stretched.
Narratives also update dynamically when new information, such as earnings results, major contracts or executive changes is released. As a result, a bullish Vertiv Narrative that targets fair value near about $196.83 and a more cautious view anchored closer to $119.0 will both automatically adjust as the facts change, helping each investor stay aligned with their own perspective.
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 1-Year Stock Price Chart
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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