VRT
Vertiv Holdings Co
$327.46
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 50.4% above fair value
You pay
$327.46
Bear
$124.15
Fair
$217.67
Bull
$330.45
Bear
$124.15
-62.1%
11% stage 1 growth, 12% discount
Fair
$217.67
-33.5%
19% stage 1 growth, 12% discount
Bull
$330.45
+0.9%
24% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (19% base case)
Terminal Value % of EV
41%
Implied Market Multiple
68.5x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $371.67 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $217.67 per share.
Warnings
Wall Street's average price target is $371.67 (from 19 analysts). Our estimate is 55% below the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions