Vertiv Trades at a Premium Valuation: Should You Still Buy the Stock?

Vertiv VRT is currently overvalued, as suggested by a Value Score of F.

In terms of the trailing 12-month Price/Book, Vertiv is currently trading at 24.39X compared with the broader Computer and Technology sector’s 10.26X.

VRT's Valuation

Image Source: Zacks Investment Research

However, VRT’s shares have surged 185.6% in the trailing 12-month period, outperforming the broader Zacks Computer and Technology sector’s increase of 26.8%. The Zacks Computers - IT Services industry declined 26.7% in the same time frame. 

The company has also outperformed its closest peers, Super Micro Computer SMCI and Hewlett-Packard Enterprise HPE. Both Super Micro Computer and Hewlett-Packard Enterprise are expanding their capabilities in the AI infrastructure market. While Hewlett Packard Enterprise shares have rallied 14.1%, Super Micro Computer shares have plunged 16.1% over the trailing 12-month period.

The outperformance of VRT stock can be attributed to its extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions. In the trailing 12 months, organic orders grew approximately 81%, with a book-to-bill of 2.9 times for the fourth quarter of 2025, indicating a strong prospect.

VRT Stock's Performance

Image Source: Zacks Investment Research

Vertiv Benefits From Expanding Portfolio

Vertiv’s expanding portfolio has been noteworthy. In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15.0 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.

Further expanding its portfolio, in February 2026, Vertiv announced a significant change in data center deployment by introducing a high-fidelity Digital Twin platform. This platform aims to speed up AI infrastructure builds using Vertiv OneCore modular solutions. The system combines power, cooling and infrastructure into factory-built blocks. This approach lowers deployment time by up to 50% and reduces total ownership costs by as much as 25%. 

As part of the launch, Hut 8 HUT worked with Vertiv to integrate OneCore into certain AI data center projects. The collaboration between Vertiv and Hut 8 merges power-first infrastructure with modular deployment. The goal of the partnership with Hut 8 is to streamline AI data center construction and enable scalable, high-density computing environments for next-generation workloads.

The global acceleration of AI adoption is driving significant demand for data center infrastructure. Vertiv is capitalizing on this trend, particularly in the Americas, which saw a 46% organic sales growth in the fourth quarter of 2025.

VRT Boosts Data Center Power With Partnership

Vertiv’s strengthening efforts to support rapidly growing AI and high-density data center demand have been a major growth driver. 

Building on this momentum, the company recently announced a partnership with Generate Capital to provide Bring Your Own Power & Cooling solutions for data centers in the United States. 

This collaboration combines Vertiv’s power, cooling, and services infrastructure with Generate Capital’s financing and operational skills. The goal is to help data center operators deploy capacity more quickly in grid-constrained markets. This partnership allows for immediate on-site power solutions while keeping the option to switch to utility power in the future.

VRT Initiates Positive 1Q26 Guidance

Vertiv is benefiting from its strong portfolio and rich partner base, which will continue to benefit the company’s top-line growth.

For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range. The Zacks Consensus Estimate for Vertiv’s first-quarter 2026 revenues is pegged at $2.65 billion, suggesting growth of 30.08% year over year.

VRT expects first-quarter 2026 non-GAAP earnings per share between 95 cents and $1.01. The Zacks Consensus Estimate for first-quarter 2026 earnings is currently pegged at $1 per share, which has increased by a couple of pennies over the past 30 days. The figure indicates a year-over-year increase of 56.25%.

Conclusion

Vertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. These factors justify the company’s premium valuation. 

Vertiv stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.