A Look at Vertiv (VRT) Valuation Following Raised Guidance and Strong Quarterly Performance

Vertiv Holdings (NYSE:VRT) just delivered strong third-quarter results, increasing its full-year guidance after organic sales surged and all key metrics came in above prior expectations. The company’s positive outlook reflects ongoing demand for AI-focused digital infrastructure.

See our latest analysis for Vertiv Holdings Co.

Vertiv’s momentum continues to impress, with a 34% 1-month share price return and a massive 57% gain so far this year. A string of upbeat results, new AI-centered collaborations, and management changes has captivated investors. However, it is the incredible 1-year total shareholder return of 66% and an eye-popping 1,148% total return over three years that puts Vertiv in rare company. Growth expectations are clearly building as the data center boom drives optimism around the stock’s long-term prospects.

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Yet with shares near record highs after such a dramatic run, investors face a critical question: does Vertiv remain undervalued given its surging fundamentals, or has the market already priced in the next phase of AI-fueled growth?

Most Popular Narrative: 7.5% Overvalued

Vertiv Holdings' most widely followed narrative reveals a fair value of $173.11, while the latest share price closed at $186.06. The focus now turns to the assumptions and drivers analysts used to reach this conclusion.

Ongoing investments in R&D and engineering, highlighted by collaborations with industry leaders (e.g., CoreWeave, Dell, Oklo), position Vertiv to deliver next-generation solutions ahead of technology refresh cycles. This creates recurring upgrade opportunities and sustains top-line and earnings growth.

Read the complete narrative.

Curious about the numbers underlying this ambitious valuation? The secret lies in the narrative’s aggressive assumptions on margin expansion and relentless revenue momentum. Find out which future targets and bold expectations are moving this price forecast to new heights.

Result: Fair Value of $173.11 (OVERVALUED)

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

However, ongoing supply chain disruptions and the possibility of large customers pivoting to in-house solutions could still challenge Vertiv’s ambitious growth narrative.

Find out about the key risks to this Vertiv Holdings Co narrative.

Build Your Own Vertiv Holdings Co Narrative

If you’re keen to draw your own conclusions or prefer a personal approach, you can easily craft your own Vertiv narrative in just minutes. Do it your way

A great starting point for your Vertiv Holdings Co research is our analysis highlighting 2 key rewards and 1 important warning sign 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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