Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 22 Sept 2026
VRT· Industrials
Vertiv
Vertiv Holdings' strong ROIC and financial health are overshadowed by a high valuation and uncertain moat.
Buffett fit
Partial fit
Owner
31
Durability
70
Management
78
Price
0
Score updated 27 Oct 2026 · analysis from 22 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Vertiv Holdings 100% would mean overseeing a business with a strong financial footing, evidenced by a net debt/EBITDA of 0.44 and interest coverage of 33.1.
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The 10-year durability is supported by a consistent net income over the past five years and a of 20.3%.
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Management has shown discipline with a debt/equity of 0.75 and a strong /Net income ratio of 1.42, indicating high earnings quality.
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The current valuation metrics, with an EV/ of 64.2 and a of 77.2, are far above typical entry points, offering an earnings yield of just 1.3%.
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- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1 of 20.3% is top-quintile in its sector.
- 2 of 18.5% exceeds the sector's top-quintile cutoff.
- 3Net debt/EBITDA of 0.44 shows strong financial health.
- 4Interest coverage ratio of 33.1 indicates financial resilience.
Concerns
6- 1 of 77.2 suggests high market expectations.
- 2EV/ of 64.2 indicates significant overvaluation.
- 3 of 36.2% is below the sector's top-quintile.
- 4 5-year average of 8% is below the sector's top-quintile.
Price history
$200+678.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Vertiv Holdings designs and services digital infrastructure technologies, focusing on data centers and communication networks. With a revenue of $10.23B, it offers products under brands like Liebert and NetSure. The of 18.5% is top-quintile in its sector, indicating strong operational efficiency. The unit economics suggest a focus on high-margin lifecycle management services.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 26, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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