VRT Value Scorecard - Vertiv

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

48/60

high value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: $0.04 (2022), $1.19 (2023), $1.28 (2024), $3.41 (2025). It rose every year; the framework scores that as 5.

ROE Trend

5/5

ROE (net income / common equity): 5.3% (2022), 22.8% (2023), 20.4% (2024), 33.8% (2025). Median 21.6%, lowest 5.3%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 23.4%: operating income of $1.83B divided by $7.81B of capital (total assets $12.21B minus current liabilities $4.41B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

4/5

Net margin of 15.1%; the framework scores 10-20% as 4; gross margin 38.0%, operating margin 20.4%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.70; the framework scores 0.3-0.8 as 4 (total debt $3.34B, total cash $3.11B).

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): -$263.80M (2022), $765.90M (2023), $1.14B (2024), $1.89B (2025). It rose every year; the framework scores that as 5.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$1.14B (2022), -$691.90M (2023), -$238.30M (2024), $1.03B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

3/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $4.42 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $209.61 (EPS CAGR 69.3% capped at 20%). Current price $206.42; price is 1.5% below the model value.

DCF Value

3/5

FCF/share = $7.004, stage 1 growth = 20.0% (revenue CAGR 22.1% capped at 20%) for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $45.81, PV of terminal value = $159.24, DCF value = $205.05. Current price $206.42; price is 0.7% above the model value.

Margin of Safety

3/5

Graham value $209.61 (price is 1.5% below the model value); DCF value $205.05 (price is 0.7% above the model value).

Price-to-Book

1/5

P/B of 16.70; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 3 of 8 years (2018-2025); lowest 2.6%, highest 23.4%.

Gross margin, each year

Between 28.4% and 36.6% over 8 years (a range of 8.2 points).

Competition, in the company’s own words · 10-K filed Feb 13, 2026

The majority of our competitors target a specific offering or a specific geographic location. Competition in our markets is primarily on the basis of reliability, quality, price, service and customer relationships. Across our three geographic segments, we encounter two principal types of competitors: niche players (e.g., Delta Electronics, Inc., Stulz GmbH, Johnson Controls International PLC, and Socomec Holding SA)

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. For a year whose 10-K financial data has no standard operating income figure, earnings before interest and taxes (pre-tax income plus interest expense) is used. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $722.00M paid out against $3.52B of free cash flow (pass); total debt $3.37B to $3.23B, down 4.2%, 1.5x EBITDA (pass: not up more than 10%); shares outstanding 0.38B to 0.38B, up 1.4% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $4.42, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 69.3%)
    IV = $209.61
    Current price $206.42 vs Graham value $209.61 — price is 1.5% below the model value.

  DCF:
    FCF/share = $7.004
    Stage 1 growth = 20.0% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
    Stage 1 g capped at 20.0% (3-year revenue CAGR was 22.1%)
      Y1: $8.405 → PV $7.641
      Y2: $10.086 → PV $8.336
      Y3: $12.103 → PV $9.093
      Y4: $14.524 → PV $9.920
      Y5: $17.429 → PV $10.822
    Stage 1 PV sum = $45.81
    Terminal value at end of Y5 = $256.45
    PV of terminal value = $159.24
    DCF value = $205.05
    Current price $206.42 vs DCF value $205.05 — price is 0.7% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $206.42. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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