Is Vertiv Stock's 15.43X P/B Still Worth it? Buy, Sell, or Hold?

Vertiv VRT shares are overvalued, as suggested by a Value Score of D. In terms of the trailing 12-month Price/Book, Vertiv is currently trading at 15.43X compared with the broader Zacks Computer and Technology sector’s 9.33X.Price/Book RatioImage Source: Zacks Investment ResearchIn terms of share price performance, Vertiv shares have plunged 5% year to date (YTD), underperforming the broader sector’s 1.7% decline. The company’s share price has declined due to increasing macroeconomic challenges and uncertainty attributed to higher tariffs. However, Vertiv shares have outperformed the Zacks Computers - IT Services industry, which declined 7.5% YTD. Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, is noteworthy. In the trailing 12 months, organic orders grew approximately 20%, with a book-to-bill of 1.4 times for the first quarter of 2025, which suggests a strong prospect. Backlog grew 10% sequentially and 25% year over year to $7.9 billion.YTD PerformanceImage Source: Zacks Investment ResearchCan Vertiv stock overcome macroeconomic challenges driven by its strong product portfolio? What should investors do with VRT shares at the current valuation? Let’s find out.VRT Expands Portfolio With NVIDIA for AI Power SolutionsVertiv’s expanding portfolio has been noteworthy. In May 2025, the company confirmed its alignment with NVIDIA’s NVDA AI roadmap to deploy 800 VDC power architectures ahead of NVIDIA Kyber and Rubin Ultra platforms. Vertiv aims to stay one GPU generation ahead of NVIDIA, enabling efficient, scalable power solutions for next-gen AI data centers. The partnership highlights Vertiv’s commitment to supporting NVIDIA’s evolving compute demands with advanced power and cooling infrastructure.Vertiv Benefits From Rich Partner BaseVertiv’s rich partner base, which includes Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen TGEN, is a key catalyst.In March 2025, Vertiv announced a collaboration with Tecogen to offer advanced natural gas-powered chiller technology to data centers worldwide. This technology addresses power constraints and facilitates AI deployment at scale. Tecogen’s proven 40-year expertise in clean energy solutions enhances Vertiv’s portfolio of cooling solutions.VRT Raises 2025 GuidanceFor 2025, revenues are now expected to be between $9.325 billion and $9.575 billion. Organic net sales growth is likely to be between 16.5% and 19.5%. VRT expects 2025 non-GAAP earnings between $3.45 and $3.65 per share. Previously, revenues were projected to be between $9.125 billion and $9.275 billion for 2025. Organic net sales growth is expected to be between 15% and 17%. VRT projected 2025 non-GAAP earnings per share between $3.50 and $3.60. For second-quarter 2025, revenues are expected to be between $2.325 billion and $2.375 billion. Organic net sales are expected to increase in the 19% to 23% range.VRT expects second-quarter 2025 non-GAAP earnings per share between 77 cents and 85 cents.VRT’s Earnings Estimates Revisions Are SteadyThe Zacks Consensus Estimate for Vertiv’s second-quarter 2025 revenues is $2.27 billion, suggesting growth of 16.48% year over year.The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 82 cents per share, which has been unchanged in the past 30 days. The figure indicates a year-over-year increase of 22.39%.The Zacks Consensus Estimate for Vertiv’s 2025 revenues is pegged at $9.51 billion, suggesting growth of 18.71% year over year.The Zacks Consensus Estimate for 2025 earnings is pegged at $3.55 per share, which has been unchanged over the past 30 days. This indicates a 24.56% increase from the 2024 reported figure.Vertiv Holdings Co. Price and Consensus Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. QuoteVRT Suffers From Stiff CompetitionDespite Vertiv’s expanding portfolio and partner base, the company is suffering from stiff competition from its closest peer, Eaton ETN, which is making strong efforts to advance its sustainable energy solutions and expand its market presence. Eaton has invested more than $8 billion in transformative portfolio management, further strengthening its position in the industry.Further intensifying the pressure on Vertiv, Eaton continued to expand its portfolio by showcasing its latest intelligent power management innovations at Elecrama 2025. In April 2025, the company introduced advanced Uninterruptible Power Supply (UPS) systems and smart switchgear solutions designed to enhance energy efficiency and support sustainable power infrastructure.Conclusion: Hold Vertiv Stock for NowVertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. However, macroeconomic uncertainties, stiff competition and stretched valuation are headwinds that make VRT stock a risky bet.VRT currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eaton Corporation, PLC (ETN): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tecogen Inc. (TGEN): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks