Vertiv overvalued at 15.43X P/B ratio, faces competition, advised hold

From Nasdaq: 2025-06-02 10:24:00

Vertiv (VRT) shares are overvalued with a Value Score of D and a Price/Book ratio of 15.43X, higher than the sector’s 9.33X. YTD, VRT shares dropped 5%, underperforming the sector. However, VRT outperformed the Computers – IT Services industry, showing potential growth with organic orders up 20% in the past year. Backlog is at $7.9 billion.

Vertiv aligns with NVIDIA (NVDA) for AI power solutions, deploying power architectures ahead of NVIDIA’s platforms. The partnership highlights Vertiv’s commitment to supporting NVIDIA’s compute demands with advanced infrastructure. Vertiv’s rich partner base includes Ballard Power Systems, NVIDIA, and Tecogen (TGEN), enhancing its offerings.

VRT raises 2025 guidance with revenues expected between $9.325 billion and $9.575 billion, and non-GAAP earnings projected between $3.45 and $3.65 per share. Estimates for Q2 2025 show revenues between $2.325 billion and $2.375 billion, with strong organic net sales growth. Zacks Consensus Estimates indicate steady growth for VRT.

Vertiv faces stiff competition from Eaton (ETN), impacting its performance despite a strong portfolio and partner base. Eaton’s investments in sustainable energy solutions pose a challenge. Vertiv is advised as a risky bet due to macroeconomic uncertainties and competition. Hold VRT stock for now, as it has a Zacks Rank #3.

Zacks names a top semiconductor stock with significant growth potential. With expanding customer base and strong earnings, this stock is positioned to meet the growing demand for AI, ML, and IoT. Global semiconductor manufacturing is projected to reach $803 billion by 2028. Investors can access the stock recommendation for free.



Read more at Nasdaq: Is Vertiv Stock’s 15.43X P/B Still Worth it? Buy, Sell, or Hold?