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Vertiv Holdings Co (Vertiv Holdings Co) Intrinsic Value: Projected FCF : $6.55 (As of May. 19, 2024)


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What is Vertiv Holdings Co Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-19), Vertiv Holdings Co's Intrinsic Value: Projected FCF is $6.55. The stock price of Vertiv Holdings Co is $96.81. Therefore, Vertiv Holdings Co's Price-to-Intrinsic-Value-Projected-FCF of today is 14.8.

The historical rank and industry rank for Vertiv Holdings Co's Intrinsic Value: Projected FCF or its related term are showing as below:

VRT' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 4.17   Med: 6.68   Max: 14.78
Current: 14.78

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Vertiv Holdings Co was 14.78. The lowest was 4.17. And the median was 6.68.

VRT's Price-to-Projected-FCF is ranked worse than
96.04% of 1918 companies
in the Industrial Products industry
Industry Median: 1.56 vs VRT: 14.78

Vertiv Holdings Co Intrinsic Value: Projected FCF Historical Data

The historical data trend for Vertiv Holdings Co's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vertiv Holdings Co Intrinsic Value: Projected FCF Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - - 7.19

Vertiv Holdings Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.43 4.55 5.47 7.19 6.55

Competitive Comparison of Vertiv Holdings Co's Intrinsic Value: Projected FCF

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vertiv Holdings Co's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Vertiv Holdings Co's Price-to-Projected-FCF falls into.



Vertiv Holdings Co Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Vertiv Holdings Co's Free Cash Flow(6 year avg) = $143.92.

Vertiv Holdings Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*143.91952+1393.4*0.8)/379.135
=6.55

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Vertiv Holdings Co  (NYSE:VRT) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Vertiv Holdings Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=96.81/6.5540887333601
=14.77

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Vertiv Holdings Co Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Vertiv Holdings Co's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Vertiv Holdings Co (Vertiv Holdings Co) Business Description

Traded in Other Exchanges
Address
505 N. Cleveland Ave., Westerville, OH, USA, 43082
Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers' vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.
Executives
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Platinum Equity Partners Iv, L.p. director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iv, Llc director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Lim Cheryl H.j. officer: Chief Human Resources Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Joseph J Deangelo director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Michael J. Kitson officer: Chief Procurement Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
John F. Marion officer: EVP, Quality, VOS and Process 1050 DEARBORN DRIVE, COLUMBUS OH 43085
David Joseph Fallon officer: Chief Financial Officer 28213 VAN DYKE AVENUE, WARREN MI 48093