Vertiv Holdings Co (VRT) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Vertiv Holdings Co

Updated on October 29, 2026 · accounts published on October 28, 2026

A fast-growing industrial business with record margins and a light balance sheet

Vertiv trades at a P/E of 43.5 over the last 12 months, 68 % above its sector median, after revenue grew 28 % and EPS 166 %.

• Is Vertiv expensive or cheap? Vertiv's P/E of 43.5 over the last 12 months is 68 % above its sector median, yet 45 % below its own five-year average.
• How is the business doing? Operating margin of 19 % over the last 12 months is more than double the 7 % decade average, with revenue up 28 %.
• How strong is the balance sheet? Net debt was 0.8× EBITDA in fiscal 2025, equal to just 1.9 % of the share price; the dividend yields 0.1 %.
• What to expect from the next earnings? Analysts expect EPS of $2.20 in the report due February 10, 2027; Vertiv beat estimates in each of the last 8 quarters.
• Does Vertiv turn its margin into cash, and what cycle multiple does it trade at? Free cash flow was 142 % of net income in fiscal 2025, well above the 85 % that industrials treat as healthy.

Is Vertiv expensive or cheap?

Over the last 12 months Vertiv trades at a P/E of 43.5. That is 68 % above the 25.8 median of 297 industrial peers. Its own history gives a different reading: the five-year average P/E is 82.7, so today's multiple sits 45 % below it. EV/EBITDA of 31.2 is close to its seven-year average of 30.3, in line with its usual level. The earnings yield is 1.5 % and the free cash flow yield 2.2 %, so the price relies heavily on future growth. The stock is up 24 % over 12 months but 35 % below its 52-week high of $376.23.

How is the business doing?

Over the last 12 months revenue grew 28 % and EPS rose 166 %, so profit is growing far faster than sales. The margin shows the same leverage. Operating margin was 19 % over the last 12 months against a 7 % average for fiscal 2016-2025, and fiscal 2025 was the best of those ten years. ROIC of 21 % is 12 points above the 9 % sector median, and ROE reaches 42 %. History is the caution: ROIC cleared 10 % in only 3 of the last 9 fiscal years, with a low of −0.1 % in 2018. This level of profitability is recent and has not yet been tested over a full cycle.

How strong is the balance sheet?

Debt is a small issue on the fiscal 2025 numbers. Net debt was $4.35 per share ($9.14 of debt minus $4.79 of cash). That is 0.8× EBITDA, well under the 3× the sector treats as healthy, and only 1.9 % of the current share price. Over the last 12 months debt to equity is 0.70 and the current ratio 1.38. The Altman Z-score of 6.2 sits well inside the safe zone above 2.99. Shareholder payouts are minor: the dividend yields 0.1 %, took 5 % of fiscal 2025 earnings and has risen for three straight years. Almost all profit stays in the business.

What to expect from the next earnings?

On October 28, 2026 Vertiv reported EPS of $2.21 against $1.82 expected, a 21 % beat. It has topped EPS estimates in 8 of the last 8 quarters. For the next report, due February 10, 2027, analysts expect $2.20, about level with the quarter just reported. Analysts are almost all positive: 20 of 21 recommend buying, one says hold and none say sell. The 2026 EPS consensus barely moved in 30 days, from $6.72 to $6.73 across 16 analysts, despite the latest beat. With a P/E of 43.5 over the last 12 months, expectations are already high.

Does Vertiv turn its margin into cash, and what cycle multiple does it trade at?

Industrials are semi-cyclical, so one strong year can flatter earnings. The sector is judged on its order backlog, its operating margin and whether profit turns into cash. Vertiv passes most of these tests. Its fiscal 2025 operating margin of 18.5 % beats the 12 % healthy line. Revenue per share grew 13.5 % a year over fiscal 2020-2025, against a 6 % bar. Free cash flow reached 142 % of net income. The one miss is capex: 2.2 % of revenue in fiscal 2025, below the 4-8 % range, and that low spending lifts cash conversion. Adjusted for the cycle, EV/EBITDA of 31.2 is within 10 % of its seven-year average.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.