Market Pulse50Neutral

Vertiv Holdings CoOpportunity Rank #234(VRT) Intrinsic Value & DCF Analysis (2026)

Sector: Industrials

Current Price

$256.00

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$256.00
Price
$94.71
Intrinsic Value
Overvalued by 63%MOS: $75.77

Fundamental Score

43/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

The intrinsic value of Vertiv Holdings Co (VRT) is estimated at $94.71 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $256.00, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 9.60% long-term growth rate and an 11.86% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Vertiv Holdings Co (VRT) is estimated at $94.71 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $256.00, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 9.60% long-term growth rate and an 11.86% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$94.71
-63.00% downside
20% margin of safety: $75.77
Years: 10Growth Rate: 9.60%
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Capital Efficiency

Average Quarterly ROIC
7.61%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

43/100
BearishWeighted across 6 signals
DCF Discount
63.0% premium to price
0
FCF Yield
2.4% trailing FCF yield
10
ROIC vs WACC
ROIC 7.6% vs WACC 10.0% (0.8x)
38
Net Debt / FCF
0.6x net debt to FCF
89
Buybacks
Share count growing
30
FCF CAGR (5Y)
55.3% 5Y FCF CAGR
100
Strengths: Net Debt / FCF, FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:Average (50th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 2h ago
Sources: 185 (178 News · 7 Analyst)
Drivers(last 30 days)
137 news sentiment+4.1
35 regulatory scrutiny+1.9
Downgrade headlines+0.2
3 earnings beat+0.1
2 upgrade headlines+0.0
Analyst upgrades+0.0

Investment Coach

Updated 22h ago
AVOIDConfidence: 76%
Thesis
Vertiv Holdings Co is significantly overvalued with its current price approximately 62% above the estimated fair value, supported by weak fundamentals and returns trailing its cost of capital. Despite a stable but weak narrative score, the company's financial metrics indicate bearish conditions.
Key Risk
The primary risk is that the company's returns on invested capital remain below its weighted average cost of capital, undermining value creation.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • Sustained improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 21.41%5 Year CAGR: 51.52%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016
$2,360$2,334$1,503$1,035-$42$296$262$57$4-$13$34

How Intrinziq Estimates Fair Value

Intrinziq estimates Vertiv Holdings Co's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Vertiv Holdings CoIndustrials

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. It offers AC and DC power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software services. It offers its products primarily under the Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves social media, financial services, healthcare, transportation, retail, education, and government industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Vertiv Holdings Co is headquartered in Columbus, Ohio.