Is Vertiv Holdings Co (VRT) overvalued?
On Equity Rank's model estimate, VRT trades 23% above its fair value. Vertiv Holdings Co (VRT) last closed at $182.86; the multi-method model fair value is $148.26.
| Price | Model fair value | Price vs model |
|---|---|---|
| $182.86 | $148.26 | 23% above |
What the answer rests on
- 2 of 9 valuation methods put VRT's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, VRT's free cash flow would need to grow about 20.6% a year for ten years (a reverse discounted cash flow).
- VRT trades at 44.1 times its last year's earnings, against a median of 24.8 for 187 profitable Industrials companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 8% above to 280% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind VRT's fair value · What prices assume · Other companies