How Does This Power Equipment Maker Operate?
Vertiv Holdings Co designs and supplies equipment and services that support critical infrastructure for power and thermal management. The business sells hardware, systems, and related support that keep facilities running reliably. Its offering is geared toward customers that need high uptime and controlled operating environments. At today’s scale, it sits in the public markets as a large-cap electrical equipment name.
Are Margins And Cash Strength Sustainable?
FundamentalsFor 2025, reported in USD, revenue reached about USD 10.2 billion, alongside net income of roughly USD 1.33 billion and a 27.7% year-over-year increase in sales. Over the trailing period, gross margin was 36.32%, operating margin 17.03%, and net profit margin 13.03%.
Reinvestment levels were tangible but not heavy: depreciation and amortization totaled about USD 97 million and capital spending was around USD 220 million. The balance sheet showed roughly USD 1.73 billion of cash against about USD 42 million of total debt.
Is The Market Overpaying For Growth?
DCF / MultiplesAt about USD 321.75, the stock trades well above the range implied by discounted cash flow modeling, indicating a wide gap between price and the cash-flow profile suggested by the model. That contrast is echoed in headline multiples, with an 87.59 P/E, 57.80 EV/EBITDA, and 11.41 price-to-sales ratio.
Valuation Leaves Little Cushion
TakeawayThe price already assumes years of strong growth. It also assumes reinvestment keeps converting into real earnings. Margins need to hold while the business scales. If growth cools, the valuation has little cushion. If spending rises faster than sales, cash could disappoint.