Latest Ratios: P/E Ratio 93.4x · EV/EBITDA 56.2x · 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 | $122.3B | $63.3B | $43.9B | $18.6B | $5.2B | $8.9B | $5.7B | $1.3B | $845M | — | — |
| Enterprise Value | $124.0B | $65.0B | $46.0B | $20.9B | $8.3B | $11.6B | $7.5B | $4.7B | $844M | — | — |
| P/E Ratio → | 93.39 | 47.51 | 88.76 | 40.36 | — | 73.44 | — | — | 168.10 | — | — |
| P/S Ratio | 11.96 | 6.19 | 5.48 | 2.70 | 0.91 | 1.78 | 1.31 | 0.29 | 0.20 | — | — |
| P/B Ratio | 31.57 | 16.06 | 18.03 | 9.21 | 3.58 | 6.26 | 11.20 | — | 1.26 | — | — |
| P/FCF | 64.59 | 33.42 | 38.66 | 24.22 | — | 70.29 | 36.70 | 134.16 | 202.56 | — | — |
| P/OCF | 57.87 | 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 | 56.22 | 29.45 | 27.77 | 17.73 | 15.75 | 23.29 | 13.88 | 10.92 | 132.56 | — | — |
| EV / EBIT | 65.37 | 34.25 | 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 | -0.13 | — | — |
| Debt / FCF | — | 0.88 | 1.84 | 3.05 | — | 21.23 | 11.26 | 344.21 | -0.20 | — | — |
| Interest Coverage | 22.03 | 22.03 | 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 | 1.1% | 2.1% | 1.1% | 2.5% | — | 1.4% | — | — | 0.6% | — | — |
| FCF Yield | 1.5% | 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 |
Hyperscale customer concentration risk
According to current market data, Vertiv trades at a forward P/E of 46.86, which suggests that investors are pricing in significant long-term earnings growth that exceeds the multiples of more diversified industrial peers like Eaton, which currently trades at a forward P/E of approximately 38.50.
The elevated P/S ratio of 11.41 indicates that the market is assigning a 'pure-play' data center premium to Vertiv, likely driven by the rapid adoption of liquid cooling technologies. Investors should monitor whether this valuation remains sustainable if the current pace of hyperscale capital expenditure begins to normalize or if growth rates decelerate from current levels.
Based on reported financial statements, Vertiv's ROIC has trended upward from 3.5% in 2024Q1 to 6.1% in 2026Q1, reflecting a successful transition toward higher-margin, proprietary thermal management solutions that require less capital intensity than the company's legacy power distribution hardware business.
The expansion in ROIC appears to be driven by both improved operating margins and a more disciplined approach to asset utilization. While the current return levels remain below those of established industrial conglomerates, the trajectory suggests that the company is effectively compounding capital as it scales its high-density cooling portfolio.
As reported in recent filings, Vertiv's cash conversion cycle has fluctuated significantly, reaching 95 days in 2026Q1, which indicates that the company's project-based revenue model necessitates careful management of receivables and inventory to maintain liquidity during periods of rapid top-line expansion.
The DSO of 106 days suggests that the company's payment terms are heavily influenced by the long-cycle nature of hyperscale data center builds. Investors should monitor whether these turnover metrics stabilize as the company shifts toward a more recurring, service-heavy revenue mix, which could improve overall working capital efficiency.
Data from peer comparisons indicates that Vertiv maintains a unique risk-reward profile, with a higher P/E multiple than Eaton or Ingersoll Rand, justified by its specialized focus on the high-density cooling stack that is critical for modern AI-driven data center infrastructure.
While Vertiv leads in growth-oriented metrics, its lower ROE compared to Eaton suggests that the company is still in the process of optimizing its capital structure and operational margins. The gap in valuation multiples appears structural, reflecting the market's view that Vertiv is a direct beneficiary of the AI infrastructure super-cycle.
The P/E ratio is frequently misapplied to Vertiv, as it obscures the company's transition from a cyclical hardware manufacturer to a service-oriented provider of mission-critical thermal infrastructure, which warrants a valuation framework more aligned with software-enabled industrial services rather than pure-play electrical equipment manufacturing.
Investors relying solely on P/E multiples may fail to account for the 'service tail' associated with liquid cooling, which provides higher-margin, recurring revenue that is less sensitive to the cyclicality of new data center construction. A more appropriate metric for this business model would be EV/EBITDA adjusted for the growth in the service backlog.
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Quick answers to the most common questions about buying VRT stock.
Vertiv Holdings Co's current P/E ratio is 93.4x. The historical average is 83.6x. This places it at the 80th percentile of its historical range.
Vertiv Holdings Co's current EV/EBITDA is 56.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.8x.
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 93.4x. This is at the 80th 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 0.05% 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.