"At $281.03, Vertiv trades at a trailing P/E of 83x and a forward P/E of 46x based on analyst estimates. Those numbers will make any value investor wince."
"The most compelling reason this move may not be over is Vertiv's order book. Q4 2025 organic orders grew 252% year over year - the strongest order quarter in company history."
"The backlog now stands at $15 billion, up 109% year over year, with a book-to-bill ratio of approximately 2.9x. That ratio means for every dollar of product shipped, Vertiv is booking nearly three dollars in new orders."
"Our record backlog provides clear visibility into what we expect to be another year of significant growth."
Vertiv Holdings has experienced a significant stock price increase of 347% over the past year, reaching $281.03. The current valuation shows a trailing P/E of 83x and a forward P/E of 46x, indicating elevated but not irrational pricing given expected earnings growth. The company anticipates adjusted diluted EPS growth of 42% to 45% by 2026. Additionally, a record backlog of $15 billion and a strong book-to-bill ratio suggest continued growth potential, despite current prices exceeding analyst targets.
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