Latest Ratios: P/E Ratio 73.0x · EV/EBITDA 44.2x · ROE 41.8%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $95.8B | $63.3B | $43.9B | $18.6B | $5.2B | $8.9B | $5.7B | $1.3B | $845M | — | — |
| Enterprise Value | $97.5B | $65.0B | $46.0B | $20.9B | $8.3B | $11.6B | $7.5B | $4.7B | $844M | — | — |
| P/E Ratio → | 72.96 | 47.51 | 88.76 | 40.36 | — | 73.44 | — | — | 168.10 | — | — |
| P/S Ratio | 9.36 | 6.19 | 5.48 | 2.70 | 0.91 | 1.78 | 1.31 | 0.29 | 0.20 | — | — |
| P/B Ratio | 24.66 | 16.06 | 18.03 | 9.21 | 3.58 | 6.26 | 11.20 | — | 1.26 | — | — |
| P/FCF | 50.57 | 33.42 | 38.66 | 24.22 | — | 70.29 | 36.70 | 134.16 | 202.56 | — | — |
| P/OCF | 45.31 | 29.94 | 33.27 | 20.60 | — | 42.10 | 27.44 | 134.16 | 202.56 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.35 | 5.74 | 3.04 | 1.45 | 2.31 | 1.71 | 1.05 | 0.20 | — | — |
| EV / EBITDA | 44.18 | 29.45 | 27.77 | 17.73 | 15.75 | 23.29 | 13.88 | 10.92 | 3.50 | — | — |
| EV / EBIT | 51.37 | 35.54 | 50.20 | 27.75 | 26.29 | 45.01 | — | 22.57 | 132.56 | — | — |
| EV / FCF | — | 34.30 | 40.50 | 27.27 | — | 91.52 | 47.97 | 478.36 | 202.36 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.4% | 34.4% | 34.4% | 32.3% | 24.6% | 27.6% | 30.8% | 29.9% | 33.1% | 33.8% | 35.8% |
| Operating Margin | 18.5% | 18.5% | 17.2% | 13.2% | 3.9% | 5.4% | 7.7% | 5.0% | -0.0% | 1.5% | -0.0% |
| Net Profit Margin | 13.0% | 13.0% | 6.2% | 6.7% | 1.3% | 2.4% | -7.5% | -3.2% | 0.1% | 0.0% | -0.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 41.8% | 41.8% | 22.3% | 26.6% | 5.4% | 12.4% | -63.9% | — | 1.5% | -5.2% | -1213.7% |
| ROA | 12.5% | 12.5% | 5.8% | 6.1% | 1.1% | 2.0% | -6.7% | -5.3% | 1.4% | -5.1% | -1213.7% |
| ROIC | 28.1% | 28.1% | 23.3% | 15.3% | 3.9% | 6.3% | 10.3% | 10.1% | -0.2% | 185021.8% | -910.3% |
| ROCE | 27.4% | 27.4% | 23.5% | 16.7% | 4.3% | 6.4% | 8.5% | 8.4% | -0.3% | 253330.0% | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 1.36 | 1.55 | 2.34 | 2.21 | 4.50 | — | — | — | — |
| Debt / EBITDA | 1.54 | 1.54 | 2.00 | 2.65 | 6.42 | 6.30 | 4.27 | 8.41 | — | — | — |
| Net Debt / Equity | — | 0.42 | 0.86 | 1.16 | 2.15 | 1.89 | 3.44 | — | -0.00 | 0.00 | 0.00 |
| Net Debt / EBITDA | 0.76 | 0.76 | 1.26 | 1.98 | 5.90 | 5.40 | 3.26 | 7.86 | -0.00 | 0.00 | 0.00 |
| Debt / FCF | — | 0.88 | 1.84 | 3.05 | — | 21.23 | 11.26 | 344.21 | -0.20 | — | — |
| Interest Coverage | 21.23 | 21.23 | 6.09 | 3.44 | 2.13 | 2.83 | -0.69 | 0.66 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.55 | 1.55 | 1.65 | 1.74 | 1.66 | 1.45 | 1.45 | 65.60 | 0.92 | 19.59 | — |
| Quick Ratio | 1.22 | 1.22 | 1.25 | 1.35 | 1.23 | 1.12 | 1.19 | 52.56 | 0.92 | -316673.20 | — |
| Cash Ratio | 0.41 | 0.41 | 0.40 | 0.34 | 0.14 | 0.24 | 0.31 | 7.60 | 0.65 | — | — |
| Asset Turnover | — | 0.84 | 0.88 | 0.86 | 0.80 | 0.72 | 0.86 | 0.95 | 6.15 | 155176.00 | 157740.00 |
| Inventory Turnover | 4.61 | 4.61 | 4.23 | 5.25 | 5.22 | 5.87 | 6.77 | 7.75 | — | 6.35 | — |
| Days Sales Outstanding | — | 110.93 | 107.64 | 116.21 | 121.13 | 112.20 | 113.11 | 99.85 | 106.61 | 0.00 | 0.00 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | 0.1% | 100.0% | 0.6% | — | — |
| Payout Ratio | 5.0% | 5.0% | 8.5% | 2.1% | 5.0% | 3.2% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 2.1% | 1.1% | 2.5% | — | 1.4% | — | — | 0.6% | — | — |
| FCF Yield | 2.0% | 3.0% | 2.6% | 4.1% | — | 1.4% | 2.7% | 0.7% | 0.5% | — | — |
| Buyback Yield | 0.0% | 0.0% | 1.4% | 0.0% | 0.0% | 0.0% | 6.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.1% | 0.1% | 1.5% | 0.1% | 0.1% | 0.0% | 6.0% | 100.0% | 0.6% | — | — |
| Shares Outstanding | — | $391M | $386M | $386M | $378M | $356M | $307M | $118M | $86M | $86M | $69M |
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying VRT stock.
Vertiv Holdings Co's current P/E ratio is 73.0x. The historical average is 83.6x. This places it at the 40th percentile of its historical range.
Vertiv Holdings Co's current EV/EBITDA is 44.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
Vertiv Holdings Co's return on equity (ROE) is 41.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 5.1%.
Based on historical data, Vertiv Holdings Co is trading at a P/E of 73.0x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Vertiv Holdings Co's current dividend yield is 0.07% with a payout ratio of 5.0%.
Vertiv Holdings Co has 34.4% gross margin and 18.5% operating margin. Operating margin between 10-20% is typical for established companies.
Vertiv Holdings Co's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Hyperscaler concentration and supply chain
Metrics are mathematically derived from official filings.
Margin Expansion on Mix Shift
Gross margin expanded 620 basis points to 37.7% by 2026Q2, as per financial statements, driven by liquid cooling and services mix, while operating margin reached 19.5%, indicating strong pricing power and operational leverage.
The sequential improvement in operating margin from 16.6% in 2026Q1 to 19.5% in 2026Q2, despite a slight dip in gross margin, suggests that SG&A leverage is amplifying the mix shift. However, the recent EPS miss against raised guidance implies that margin sustainability may be challenged by supply chain constraints or customer mix shifts, warranting close monitoring of cost pass-through and backlog conversion.
ROIC Inflection on AI Demand
ROIC improved from 3.5% in 2024Q1 to 9.1% in 2026Q2, as reported in SEC filings, reflecting a fundamental profitability inflection driven by margin expansion and asset efficiency, though still below peer Eaton's 13.6%.
The doubling of ROIC over ten quarters is primarily margin-driven, as asset turnover remained relatively stable around 0.22-0.25. This suggests that Vertiv is not yet generating incremental returns from asset efficiency, but rather from pricing and mix. The gap to Eaton's ROIC indicates room for improvement, but the rapid pace of improvement suggests the company is compounding returns on invested capital as it scales.
Working Capital Stretch on Growth
Cash conversion cycle lengthened from 115 days in 2024Q1 to 94 days in 2026Q2, per financial statements, as DSO improved to 96 days but DIO rose to 97 days, indicating inventory build-up to meet AI-driven demand.
The modest improvement in CCC masks a significant inventory build, with DIO increasing from 76 to 97 days over the period. This suggests Vertiv is stocking components ahead of order fulfillment, which may strain liquidity if demand normalizes. However, the concurrent rise in deferred revenue to $3.6B indicates strong advance payments, partially offsetting the working capital drag.
Rapid Deleveraging via Equity Growth
Debt-to-equity fell from 2.25 in 2024Q1 to 0.68 in 2026Q2, as reported in balance sheet data, while interest coverage improved to 36.6x, indicating a dramatically more comfortable debt service position.
The deleveraging is driven by equity expansion (from $1.4B to $4.8B) rather than debt reduction, as total debt remained near $3.3B. This implies that retained earnings and possibly equity issuance are funding growth, reducing financial risk. However, the low absolute debt level may also reflect a recent recapitalization, and investors should verify the sustainability of this capital structure.
Liquidity Buffer Strengthens
Current ratio improved to 1.38 in 2026Q2 from 1.34 in 2024Q1, while cash more than doubled to $2.8B, as per filings, providing a robust buffer against supply chain disruptions and customer concentration.
The quick ratio of 1.03 indicates that inventory is a significant component of current assets, but the strong cash position and deferred revenue growth suggest that liquidity is adequate even under stress. The improvement in the current ratio, despite rising inventory, reflects a deliberate strategy to secure components for record backlog, which may be prudent given supply chain constraints.
Misapplied P/E on Cyclical Growth
The trailing P/E of 81.5x, as per current valuation multiples, is misleading for a company with accelerating earnings, as it fails to capture the forward earnings power implied by raised guidance and a 41.8x forward P/E.
The market often applies a cyclical multiple to Vertiv, but the AI-driven demand surge may be secular, making forward earnings more relevant. The EV/EBITDA of 49.3x also appears elevated, but it may be justified if the company sustains 20%+ growth. Investors should focus on forward multiples and the durability of the order book rather than trailing earnings, which include the 2024 trough.