Vertiv Holdings (VRT): Evaluating Valuation After Strong Momentum and Big Gains in 2024

Simply Wall St
Vertiv Holdings Co (VRT) stock has shown strong momentum, climbing about 20% over the past month and jumping 81% in the past year. Investors are sizing up these returns in light of solid revenue and earnings growth.

See our latest analysis for Vertiv Holdings Co.

Vertiv’s momentum shows no sign of fading, with a strong 20% share price return over the past month building on already impressive gains. The big-picture view is even more striking, as its total shareholder return has soared over 80% for the year and more than 1,200% in the last three years. This underlines robust investor confidence tied to growth prospects and positive recent developments.

If Vertiv’s surge has you thinking bigger, now’s a great moment to broaden your search and discover fast growing stocks with high insider ownership

But with shares near recent highs, investors must ask if Vertiv is undervalued and presents a buying opportunity, or if the stellar growth has already been fully reflected in the price.

Most Popular Narrative: 11.4% Overvalued

With Vertiv shares trading at $192.86, the most widely followed narrative assigns a fair value of $173.11, suggesting the stock price is notably above that calculation. This valuation is shaped by upbeat growth forecasts and ongoing corporate developments worth a closer look.

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 approach creates recurring upgrade opportunities and helps sustain top-line and earnings growth.

Read the complete narrative.

Want to know the secret sauce behind this premium price tag? It all comes down to game-changing projections around future revenues, margins, and just how far earnings can stretch. What figures fuel this ambitious outlook? Dive in to see what’s driving analyst conviction and if this valuation holds up under scrutiny.

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 risk of key customers moving operations in house could challenge Vertiv’s ability to sustain its current growth trajectory.

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

Build Your Own Vertiv Holdings Co Narrative

If you see things differently, or want to dig into the data yourself, it’s quick and easy to build your own take in just a few 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.

Valuation is complex, but we're here to simplify it.

Discover if Vertiv Holdings Co might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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