Why Vertiv Holdings Co (VRT) could be 23% undervalued in its AI infrastructure expansion

Vertiv Holdings Co (VRT) has made headlines after announcing the construction of a large-scale manufacturing facility in Malaysia’s Johor state and recent acquisitions that will expand its presence in AI-focused data center power and cooling solutions.

Check out our latest analysis for Vertiv Holdings Co.

Vertiv Holdings’ stock price has been very weak in the short term, with the 1-day stock price return down 3.5% and the 30th stock price return down 7.22%. However, momentum remains strong considering the 90-day stock price return of 15.02%, the year-to-date stock price return of 71.13%, and the three-year total shareholder return of over 11x, which is quite impressive.

If you’re interested in Vertiv’s AI data center story, you might find it helpful to see what else is moving on the same theme and check out these 52 AI infrastructure stocks.

Vertiv is currently trading at $300.53, about 23% below estimates of its intrinsic value, but still comes with the caveat that it is overvalued in terms of earnings and net income. Is this AI infrastructure leader undervalued, or is the market already pricing in years of future growth?

Most Popular Vertiv Stories: 26.5% underrated

Vertiv is trading at $300.53 compared to the story’s fair value of $408.64. This points to a significant gap in the story stemming from the company’s role in AI-centric data center infrastructure.

Vertiv designs and manufactures the power systems, cooling units, and thermal management infrastructure that maintain data centers in 130 countries with approximately 34,000 employees. With fiscal 2025 revenues of $10.2 billion and a backlog of $15 billion, Vertiv is an infrastructure company that delivers what the world already knows it can’t do without.

Read the whole story. Read the whole story.

Want to know how this story reaches a higher fair value? According to pdixit1, this story relies on rapid compound growth, margin expansion, and rich future earnings multiples. Curious about which assumptions actually move the needle in this model and how they tie into Vertiv’s AI data center exposure?

Result: Fair value is $408.64 (undervalued)

Read the full explanation to understand what’s behind the predictions.

However, this Vertiv story could be tested if hyperscale customers rein in spending on AI data centers, or if increased competition in liquid cooling squeezes margins and orders.

Learn about Vertiv Holdings Co’s key risks to this story.

Another look at Vertiv Holdings Co’s valuation

SWS’ DCF model indicates a fair value for Vertiv Holdings Co at $390.92, which is approximately 23.1% above the current share price of $300.53, suggesting that the stock is undervalued from a cash flow perspective. How much weight should you place on this if your growth assumptions don’t turn out as expected?

Find out how the SWS DCF model arrives at fair value.

next step

Given the mixed signals surrounding Vertiv Holdings Co, now is the time to look at the numbers for yourself and decide how confident you are in the company’s AI data center story. To find out exactly what investors are optimistic about, start by looking at four key perks.

Looking for investment ideas other than Vertiv?

If Vertiv is sharpening its focus on what’s next for capital, don’t stop here. Expand your watchlist with some more targeted ideas.

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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