A Fresh Look at nVent Electric's Valuation Following Second Data Center Manufacturing Expansion Announcement

nVent Electric (NVT) just unveiled plans to lease a new 117,000 square foot manufacturing space in Blaine, Minnesota, aimed at expanding its production capabilities for data center solutions, especially liquid cooling products. This move comes as the company continues to ride a wave of demand for advanced cooling technologies in the growing data center industry. It is the second such expansion in two years, and it will bring over 175 new jobs to the region once the facility is fully operational in early 2026. This signals that management sees more runway ahead for the business. This fresh expansion follows on the heels of nVent Electric’s previous capacity addition in Anoka, Minnesota. Together, the two sites will account for over 325 new jobs. Investors have noticed the momentum as the company’s share price has climbed 51% over the past year, with strong gains in recent months that build a narrative of sustained upside. Recent financial results show annual revenue and net income growth, giving further fuel to bullish case discussions. After such a sustained run, the key question is whether these expansion moves are still underappreciated by the market or if the current share price has already priced in nVent Electric’s future growth potential. Is there a real buying opportunity here, or are investors chasing a stock that is already fully valued?

Most Popular Narrative: 4.6% Undervalued

According to the most widely followed narrative, nVent Electric is seen as slightly undervalued, with the stock trading below its estimated fair value based on anticipated earnings and revenue growth.

Significant investments in capacity, new product launches (notably in liquid cooling and modular data center solutions), and digital sales channels position nVent to capitalize on recurring upgrade cycles and rising demand for turnkey, advanced electrical solutions. This is likely to support future increases in both revenues and net margins.

Curious how nVent's next phase of growth is being valued? The heart of this narrative lies in bold estimates for future sales, expanding profit margins, and a financial multiple usually reserved for high-flyers. Want to see the real numbers behind that price target? Dig deeper and you might be surprised by what is driving this calculation.

Result: Fair Value of $97.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain if AI data center spending slows or if recent acquisitions do not deliver the expected operational and margin benefits.

Find out about the key risks to this nVent Electric narrative.

Another View: Challenging the Story from a Different Angle

While some see nVent Electric as undervalued by future earnings, a look through the lens of its earnings multiple compared to the industry suggests the shares may actually be expensive. Can both views be right?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding nVent Electric to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own nVent Electric Narrative

If you see things differently or want to dig into the numbers yourself, you can assemble your own take in just a few minutes. Do it your way

A great starting point for your nVent Electric research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.

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