VRT Vertiv Holdings Co

Vertiv Holdings designs, manufactures, and services power, cooling, and IT infrastructure equipment for data centers and communication networks. Sector: Industrials.

Vertiv Holdings Co (VRT) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 25.41%, WACC is 15.71%, and the economic spread is 9.71%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 42.16% and ROA at 11.96%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Valuation currently screens at trailing P/E of 76.62, forward P/E of 42.89, PEG of 1.17. The gap between trailing and forward multiples is wide, suggesting the market is pricing meaningful earnings expansion over the coming year. A PEG below 1.5 implies the company's growth rate is not fully reflected in the current multiple — a constructive signal for growth-adjusted value. The aggregate current ratio of 1.55 reflects a company with workable near-term liquidity positions. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

From gross to free cash flow, gross margin sits at 36.32%, operating margin at 18.55%, and free cash flow margin at 18.48%. At this gross margin level, pricing power is present but not dominant — cost management matters as much as revenue growth. The operating margin reading is healthy — adequate to support reinvestment without sacrificing profitability. The company's FCF margin is above average, pointing to the company with efficient capital deployment and durable cash generation. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of -1.75%, where consensus forward pricing suggests a pullback from current levels, while TTM revenue growth of 22.74% reflecting top-line acceleration that, if sustained, supports the forward earnings case. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental case holds up across most key dimensions — the combination of positive economic spread, reasonable valuation, and analyst support is constructive.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.