Is Vertiv Holdings (VRT) a Buy, Hold or Sell?

Vertiv Holdings — our independent, AI-built valuation and rating, in brief.

HOLD (trim into strength)

12-mo fair value

$254.00

To fair value

+4%

By José Luis Pascual, CFA · report dated 2026-08-05 · fair value derived independently of the market price.

The thesis, in brief

At $277.94 Vertiv already discounts ~20%+ annual FCF growth through 2032 at a 9% cost of capital while its 169% TTM cash conversion is customer-advance float (deferred revenue +$1.17bn in Q2'26 alone vs $925m reported FCF), so the shares should de-rate toward $254 unless Q3'26 revenue clears the guided $3.75bn with adjusted operating margin at or above 24.5%, proving the Q2 "timing shift" was genuinely temporary rather than a structural limit on converting the $15bn backlog

How we value it

We value Vertiv Holdings using Primary: 27x justified P/E on Aug-27 NTM EPS of $9.40 (consensus $9.89 haircut 5% for execution risk); disciplined by a 7-yr FCF/DCF at 9-11% WACC giving $135-234.. The 12-month fair value is set from that intrinsic estimate first, then compared to the market to read the upside or downside — never anchored to the current price.

What the full report covers

Business & moat + industry cycle
Earnings quality & normalized EPS
Returns on capital (ROIC vs WACC)
Balance-sheet safety
Two independent valuations (DCF + multiples)
Bear / base / bull fair values
Earnings-call analysis
Insider activity & positioning
Technicals (RSI / ADX)
A falsifiable thesis

Read the full Vertiv Holdings report

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