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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
27.0%
Sector: -1.4%
Dividend Analysis audit
GROWTH
0.10%
Trailing Yield
$0.10
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
9%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Vertiv Holdings Co (VRT) receives a "Hold" rating with a composite score of 51.1/100, ranked #379 out of 4446 stocks. Key factor scores: Quality 50/100, Value 46/100, Momentum 75/100. This is quantitative analysis only — not investment advice.
Vertiv Holdings Co (VRT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Vertiv Holdings Co Do?
Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. It offers AC and DC power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software services. It offers its products primarily under the Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves social media, financial services, healthcare, transportation, retail, education, and government industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Vertiv Holdings Co is headquartered in Columbus, Ohio. Vertiv Holdings Co (VRT) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Robert J. Johnson and employs approximately 27,000 people. With a market capitalization of $99.2B, VRT is one of the prominent companies in the Technology sector.
Vertiv Holdings Co (VRT) Stock Rating — Hold (April 2026)
As of April 2026, Vertiv Holdings Co receives a Hold rating with a composite score of 51.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.VRT ranks #379 out of 4,446 stocks in our coverage universe. Within the Technology sector, Vertiv Holdings Co ranks #21 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
VRT Stock Price and 52-Week Range
Vertiv Holdings Co (VRT) currently trades at $290.64. The stock gained $3.00 (1.0%) in the most recent trading session. The 52-week high for VRT is $276.78, which means the stock is currently trading 5.0% from its annual peak. The 52-week low is $53.60, putting the stock 442.2% above its annual trough. Recent trading volume was 355K shares, suggesting relatively thin trading activity.
Is VRT Overvalued or Undervalued? — Valuation Analysis
Vertiv Holdings Co (VRT) carries a value factor score of 46/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 94.34x, compared to the Technology sector average of 45.27x — a premium of 108%. The price-to-book ratio stands at 25.46x, versus the sector average of 3.16x. The price-to-sales ratio is 10.65x, compared to 1.06x for the average Technology stock. On an enterprise value basis, VRT trades at 63.69x EV/EBITDA, versus 12.79x for the sector.
Overall, VRT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Vertiv Holdings Co Profitability — ROE, Margins, and Quality Score
Vertiv Holdings Co (VRT) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 27.0%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.7% versus the sector average of -1.0%.
On a margin basis, Vertiv Holdings Co reports gross margins of 35.5%, compared to 50.9% for the sector. The operating margin is 17.1% (sector: -0.5%). Net profit margin stands at 10.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 37.0% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
VRT Debt, Balance Sheet, and Financial Health
Vertiv Holdings Co has a debt-to-equity ratio of 74.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.55x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.91B. Cash and equivalents stand at $1.40B.
VRT has a beta of 2.20, meaning it is more volatile than the broader market — a $10,000 investment in VRT would be expected to move 120.2% more than the S&P 500 on any given day. The stability factor score for Vertiv Holdings Co is 33/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Vertiv Holdings Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Vertiv Holdings Co reported revenue of $9.42B and earnings per share (EPS) of $3.49. Net income for the quarter was $1.06B. Gross margin was 35.5%. Operating income came in at $1.62B.
In FY 2025, Vertiv Holdings Co reported revenue of $10.23B and earnings per share (EPS) of $3.49. Net income for the quarter was $1.33B. Gross margin was 36.3%. Revenue grew 27.7% year-over-year compared to FY 2024. Operating income came in at $1.83B.
In Q3 2025, Vertiv Holdings Co reported revenue of $2.68B and earnings per share (EPS) of $1.04. Net income for the quarter was $399M. Gross margin was 37.8%. Revenue grew 29.0% year-over-year compared to Q3 2024. Operating income came in at $517M.
In Q2 2025, Vertiv Holdings Co reported revenue of $2.64B and earnings per share (EPS) of $0.85. Net income for the quarter was $324M. Gross margin was 34.0%. Revenue grew 35.1% year-over-year compared to Q2 2024. Operating income came in at $442M.
Over the past 8 quarters, Vertiv Holdings Co has demonstrated a growth trajectory, with revenue expanding from $1.95B to $9.42B. Investors analyzing VRT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VRT Dividend Yield and Income Analysis
Vertiv Holdings Co (VRT) currently pays a dividend yield of 0.1%. At this yield, a $10,000 investment in VRT stock would generate approximately $$10.00 in annual dividend income. The net margin of 10.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
VRT Momentum and Technical Analysis Profile
Vertiv Holdings Co (VRT) has a momentum factor score of 75/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 47/100 reflects moderate short selling activity.
VRT vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing VRT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VRT vs S&P 500 (SPY) comparison to assess how Vertiv Holdings Co stacks up against the broader market across all factor dimensions.
VRT Next Earnings Date
No upcoming earnings date has been announced for Vertiv Holdings Co (VRT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VRT? — Investment Thesis Summary
Vertiv Holdings Co presents a balanced picture with arguments on both sides. Price momentum is positive at 75/100, suggesting the trend favors buyers. High volatility (stability score 33/100) increases portfolio risk.
In summary, Vertiv Holdings Co (VRT) earns a Hold rating with a composite score of 51.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on VRT stock.
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Institutional Research Dossier
Vertiv Holdings Co (VRT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Vertiv Holdings Co (VRT). While the company benefits from strong secular tailwinds in data center infrastructure driven by AI and cloud computing, its current valuation appears stretched relative to its historical performance and sector peers. The company's impressive revenue growth and margin expansion are encouraging, but the high P/E ratio and significant debt burden warrant caution.
Vertiv's ability to sustain its high growth rate and further improve profitability will be crucial for justifying its current market capitalization. The company's success hinges on its ability to navigate supply chain challenges, manage competition, and effectively deploy capital to meet the increasing demand for its products and services. Investors should closely monitor Vertiv's execution and financial performance before considering a more bullish stance.
Business Strategy & Overview
Vertiv Holdings Co operates in the critical digital infrastructure and life cycle services market, primarily serving data centers, communication networks, and commercial and industrial environments. The company's core business revolves around designing, manufacturing, and servicing power management, thermal management, and integrated IT infrastructure solutions. Vertiv's product portfolio includes AC and DC power systems, cooling solutions, racks, and monitoring systems, all essential for maintaining the uptime and efficiency of digital infrastructure.
Vertiv's strategic positioning is centered on providing comprehensive solutions that address the evolving needs of its customers. The company focuses on delivering reliable, energy-efficient, and scalable infrastructure solutions that support the growing demand for digital services. Vertiv's lifecycle services, including maintenance, monitoring, and optimization, contribute to recurring revenue streams and enhance customer relationships. The company's diverse customer base spans various industries, including social media, financial services, healthcare, and transportation, reducing its reliance on any single sector.
The company's growth strategy involves expanding its product offerings, increasing its geographic reach, and enhancing its service capabilities. Vertiv invests in research and development to innovate new products and improve existing ones, focusing on energy efficiency, sustainability, and automation. The company also pursues strategic acquisitions to expand its market presence and acquire new technologies. Vertiv's channel partner program plays a crucial role in reaching a broader customer base and expanding its sales network.
The industry context for Vertiv is characterized by strong secular tailwinds, including the increasing adoption of cloud computing, the growth of data centers, and the proliferation of IoT devices. These trends are driving demand for critical digital infrastructure solutions, creating significant growth opportunities for Vertiv. However, the industry is also highly competitive, with numerous players vying for market share. Vertiv faces competition from established companies and emerging players, requiring it to differentiate itself through innovation, service, and customer relationships.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
37.0%
Sector: 14.2%
+160% VS SCTR
Economic Moat Analysis
Vertiv possesses a Narrow economic moat, primarily derived from switching costs and intangible assets. The company's critical infrastructure solutions are deeply embedded in its customers' operations, creating significant switching costs. Data centers and communication networks rely heavily on Vertiv's products to ensure uptime and reliability, making it costly and disruptive to switch to alternative providers. The risk of downtime and data loss associated with switching infrastructure vendors incentivizes customers to maintain their existing relationships with Vertiv.
Vertiv's established brand reputation and technical expertise also contribute to its narrow moat. The company's Liebert, NetSure, and Avocent brands are well-recognized in the industry, representing quality and reliability. Vertiv's extensive experience in designing and servicing critical infrastructure solutions provides it with a competitive advantage over less experienced players. The company's intellectual property, including patents and proprietary technologies, further strengthens its moat.
However, Vertiv's moat is not particularly wide due to the presence of numerous competitors and the commoditization of certain products. While Vertiv offers differentiated solutions, some of its products, such as racks and power distribution units, face intense competition from lower-cost providers. The company's reliance on third-party suppliers also exposes it to supply chain disruptions and pricing pressures, potentially eroding its competitive advantage.
Furthermore, the rapid pace of technological change in the digital infrastructure market poses a threat to Vertiv's moat. New technologies and architectures, such as liquid cooling and modular data centers, could disrupt the existing market landscape and reduce the switching costs associated with Vertiv's products. The company must continuously innovate and adapt to these changes to maintain its competitive position and defend its moat.
Financial Health & Profitability
Vertiv's financial health has improved significantly in recent years, driven by strong revenue growth and margin expansion. The company's revenue increased by 37.0% year-over-year to $10.23 billion, reflecting strong demand for its products and services. The company's gross margin improved to 35.5%, while its operating margin reached 17.1%, indicating improved profitability. The net margin also saw a substantial increase to 10.9%.
The company's return on equity (ROE) is a robust 27.0%, significantly higher than the sector average of -1.5%, demonstrating efficient utilization of shareholder equity. However, the company's debt-to-equity ratio is relatively high at 74.00, compared to the sector average of 43.00, indicating a higher level of financial leverage. The current ratio of 1.55 suggests adequate liquidity to meet short-term obligations.
Analyzing the quarterly financial history reveals a consistent trend of revenue growth and margin improvement. The company's revenue has increased sequentially in each of the past four quarters, with Q3 FY2025 revenue reaching $2.68 billion. The gross margin has also shown a steady increase, reaching 37.8% in Q3 FY2025. The operating margin has followed a similar trend, reaching 19.3% in Q3 FY2025. Net income has also increased significantly, reaching $398.50 million in Q3 FY2025.
However, the absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. Investors should closely monitor the company's cash flow performance in future quarters to ensure that it can sustain its growth and meet its debt obligations. The high debt level remains a concern, and the company's ability to deleverage its balance sheet will be crucial for improving its financial flexibility.
Valuation Assessment
Vertiv's valuation appears stretched based on several key metrics. The company's P/E ratio is 73.3x, significantly higher than the sector average of 45.3x, suggesting that the stock is trading at a premium to its earnings. The EV/EBITDA ratio is 13.8x, slightly above the sector average of 13.0x, indicating that the company is relatively expensive compared to its peers.
While Vertiv's revenue growth of 37.0% is significantly higher than the sector average of 14.0%, the high valuation multiples suggest that the market has already priced in much of the company's future growth potential. The company's ability to sustain its high growth rate and further improve profitability will be crucial for justifying its current valuation.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock. However, the absence of free cash flow data makes it difficult to perform a DCF analysis. Investors should closely monitor the company's cash flow performance in future quarters to assess its long-term valuation potential.
Given the high valuation multiples and the lack of free cash flow data, we believe that Vertiv's stock is currently fairly valued. While the company's strong growth and margin expansion are encouraging, the high P/E ratio and significant debt burden warrant caution. Investors should closely monitor Vertiv's execution and financial performance before considering a more bullish stance.
Risk & Uncertainty
Vertiv faces several specific risks that could impact its business and financial performance. One of the primary risks is supply chain disruptions. The company relies on a global network of suppliers for components and materials, making it vulnerable to disruptions caused by geopolitical events, natural disasters, and other unforeseen circumstances. Supply chain disruptions could lead to increased costs, delays in production, and reduced revenue.
Competition is another significant risk for Vertiv. The digital infrastructure market is highly competitive, with numerous players vying for market share. Vertiv faces competition from established companies and emerging players, requiring it to continuously innovate and differentiate itself to maintain its competitive position. Increased competition could lead to pricing pressures and reduced profitability.
The company's high debt level also poses a risk. Vertiv has a significant amount of debt on its balance sheet, which could limit its financial flexibility and increase its vulnerability to economic downturns. The company's ability to deleverage its balance sheet will be crucial for improving its financial health and reducing its risk profile.
Technological obsolescence is another risk factor. The digital infrastructure market is characterized by rapid technological change, and Vertiv must continuously invest in research and development to stay ahead of the curve. Failure to adapt to new technologies and architectures could render its products obsolete and reduce its competitive advantage.
Bulls Say / Bears Say
The Bull Case
BULL VIEWVertiv is perfectly positioned to capitalize on the explosive growth of AI and data centers, making its current revenue growth sustainable for the foreseeable future.
BULL VIEWThe company's focus on energy-efficient solutions will drive increased demand as sustainability becomes a more critical factor in data center operations.
The Bear Case
BEAR VIEWVertiv's high debt load and premium valuation leave little room for error, making it vulnerable to any slowdown in data center spending.
BEAR VIEWThe company's reliance on third-party suppliers exposes it to supply chain disruptions and pricing pressures, potentially eroding its profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score VRT and 4,400+ other equities.
Vertiv Holdings Co exhibits a 529% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.7%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
35.5%
Sector: 50.9%
Operating Margin
Core business profitability
17.1%
Sector: -0.5%
Net Margin
Bottom-line profitability
10.9%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $10 annually in dividends at the current trailing rate.
