Latest Ratios: P/E Ratio 34.2x · EV/EBITDA 23.7x · 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 | $70.4B | $63.3B | $43.9B | $18.6B | $5.2B | $8.9B | $5.7B | $1.3B | $845M | — | — |
| Enterprise Value | $71.9B | $64.8B | $45.8B | $20.9B | $8.3B | $11.6B | $7.5B | $4.7B | $844M | — | — |
| P/E Ratio → | 34.23 | 47.51 | 88.76 | 40.36 | — | 73.44 | — | — | 168.10 | — | — |
| P/S Ratio | 5.37 | 6.19 | 5.48 | 2.70 | 0.91 | 1.78 | 1.31 | 0.29 | 0.20 | — | — |
| P/B Ratio | 18.12 | 16.06 | 18.03 | 9.21 | 3.58 | 6.26 | 11.20 | — | 1.26 | — | — |
| P/FCF | 22.59 | 33.53 | 38.66 | 24.22 | — | 70.29 | 36.70 | 134.16 | 202.56 | — | — |
| P/OCF | 33.30 | 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 | — | 6.33 | 5.72 | 3.04 | 1.45 | 2.31 | 1.72 | 1.05 | 0.20 | — | — |
| EV / EBITDA | 23.66 | 29.39 | 27.61 | 17.59 | 15.61 | 23.76 | 18.00 | 10.92 | 3.50 | — | — |
| EV / EBIT | 37.92 | 35.44 | 50.02 | 29.27 | 26.33 | 45.05 | — | 22.57 | 132.56 | — | — |
| EV / FCF | — | 34.33 | 40.35 | 27.28 | — | 91.60 | 48.02 | 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 | 36.3% | 36.3% | 36.6% | 35.0% | 28.4% | 30.5% | 33.7% | 29.9% | 33.1% | 33.8% | 35.8% |
| Operating Margin | 18.5% | 18.5% | 17.2% | 13.4% | 4.0% | 5.2% | 4.9% | 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 | 29.0% | 29.0% | 23.8% | 15.4% | 3.9% | 6.1% | 6.5% | 10.1% | -0.2% | 185021.8% | -910.3% |
| ROCE | 27.4% | 27.4% | 23.6% | 16.8% | 4.4% | 6.2% | 5.4% | 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 | 0.82 | 0.82 | 1.29 | 1.55 | 2.34 | 2.21 | 4.50 | — | — | — | — |
| Debt / EBITDA | 1.46 | 1.46 | 1.90 | 2.63 | 6.35 | 6.43 | 5.53 | 8.41 | — | — | — |
| Net Debt / Equity | — | 0.38 | 0.79 | 1.16 | 2.16 | 1.90 | 3.45 | — | -0.00 | 0.00 | 0.00 |
| Net Debt / EBITDA | 0.68 | 0.68 | 1.16 | 1.98 | 5.86 | 5.53 | 4.24 | 7.86 | -0.00 | 0.00 | 0.00 |
| Debt / FCF | — | 0.79 | 1.69 | 3.06 | — | 21.30 | 11.32 | 344.21 | -0.20 | — | — |
| Interest Coverage | 21.23 | 21.23 | 6.09 | 3.96 | 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 | 19.59 | — |
| 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 | 4.47 | 4.47 | 4.08 | 5.05 | 4.96 | 5.64 | 6.49 | 7.75 | — | — | — |
| Days Sales Outstanding | — | 110.93 | 107.64 | 112.65 | 121.13 | 112.20 | 113.11 | 99.85 | — | 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 | 2.9% | 2.1% | 1.1% | 2.5% | — | 1.4% | — | — | 0.6% | — | — |
| FCF Yield | 4.4% | 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 34.2x. The historical average is 83.6x.
Vertiv Holdings Co's current EV/EBITDA is 23.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.3x.
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 34.2x. Compare with industry peers and growth rates for a complete picture.
Vertiv Holdings Co's current dividend yield is 0.09% with a payout ratio of 5.0%.
Vertiv Holdings Co has 36.3% 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 capex concentration risk
Metrics are mathematically derived from official filings.
Premium Multiples Pricing Sustained AI Growth
Based on reported figures, VRT trades at 51.8x trailing P/E and 25.0x forward P/E, a steep compression that implies the market expects earnings to roughly double over the next year if the premium is to be justified.
The gap between trailing and forward P/E suggests investors are capitalizing a growth trajectory well beyond current reported earnings rather than paying for present profitability. Against the peer set, VRT's 15.4x forward EV/EBITDA sits below its trailing 31.6x and in line with Eaton's 23.0x trailing multiple, indicating the premium is concentrated in near-term earnings expectations. Investors should monitor whether forward estimates hold, since a slowdown in order conversion would leave the 6.65x P/S and 17.5x P/B multiples with little earnings support.
Margin Expansion Driven by Operating Scale
As reported in the income statements, operating margin climbed from 14.2% in 2025Q1 to 22.8% in 2026Q3 while gross margin reached 38.1%, suggesting overhead is being absorbed as revenue scales.
The expansion in operating margin outpacing net margin growth points to operating leverage rather than financial engineering. The 17.7% net margin trails the 22.8% operating margin, which appears to reflect a normal tax and interest drag rather than a one-time item. The key question is whether the 2026 pricing and mix gains persist once supply constraints ease, since the quarterly net margin has ranged from 6.3% to 17.7% over the period.
Returns Recovering From Low Base Unevenly
Based on Vertiv's reported quarterly figures, ROIC rose from 5.0% in 2025Q1 to 14.1% in 2026Q3 while ROE reached 14.9%, a recovery that remains uneven across the ten-quarter window.
The ROIC trajectory is more informative than ROE here, because ROE is inflated relative to ROIC by the thin pre-2026 equity base and recent equity rebuild. The rise in ROIC appears driven primarily by margin improvement rather than asset turnover, which remains near 0.25x per quarter. Investors should monitor whether ROIC can hold above 10% as acquired goodwill of $2.3B weighs on invested capital.
Deleveraging Through Equity Base Expansion
According to reported balance sheets, the debt-to-equity ratio fell from 2.03 in 2024Q2 to 0.59 in 2026Q3 while interest coverage moved from 6.9x to 156.4x, indicating debt service has become far more comfortable.
The decline in D/E appears to reflect equity growth from earnings retention rather than debt repayment, since total debt has held near $3.3B. Interest coverage at elevated levels suggests minimal financing strain, though the quarterly coverage figures are volatile and the 2026Q3 reading may be distorted by a low interest expense base. Refinancing risk appears low relative to the expanded equity, though this conclusion depends on the reported debt figures remaining accurate.
Working Capital Timing Obscures Cash Conversion
As reported in the quarterly figures, the cash conversion cycle swung from 80 days in 2025Q4 to 88 days in 2026Q3 while free cash flow margin moved between 10.5% and 30.7%, making underlying cash generation difficult to read.
The wide free cash flow margin range suggests reported cash generation depends heavily on working capital timing, with deferred revenue rising to $4.1B potentially flattering recent cash flows. Acquisition outflows of roughly $1.5B over the period may also limit comparability with prior periods. Investors may wish to weight cumulative multi-quarter cash flow over single-quarter readings when assessing sustainability.