Vertiv Holdings Co (VRT) is in focus after announcing a major manufacturing facility in Johor, Malaysia, along with recent acquisitions that deepen its presence in AI focused data center power and cooling solutions.

Vertiv Holdings Co’s share price has softened in the very short term, with the 1-day share price return declining 3.5% and the 30-day share price return down 7.22%. However, momentum remains strong given the 90-day share price return of 15.02%, a year-to-date share price return of 71.13%, and a very large 3-year total shareholder return that is more than 11x.

If Vertiv’s AI data center story has your attention, it can be useful to see what else is moving in the same theme and review the 52 AI infrastructure stocks.

With Vertiv now trading at $300.53, sitting about 23% below one intrinsic value estimate yet still flagged as expensive on earnings and book multiples, is this AI infrastructure leader undervalued, or is the market already pricing in years of future growth?

Most Popular Vertiv Narrative: 26.5% Undervalued

Vertiv is trading at $300.53 against a narrative fair value of $408.64, which points to a meaningful gap that the narrative attributes to its role in AI centric data center infrastructure.

Vertiv designs and manufactures the power systems, cooling units, and thermal management infrastructure that keeps data centres running across 130 countries and roughly 34,000 employees. With FY2025 revenue of $10.2 billion and a $15 billion backlog, Vertiv is an infrastructure company supplying something the world has already decided it cannot do without.

Read the complete narrative. Read the complete narrative.

Want to see how this story gets to that higher fair value? According to pdixit1, the narrative leans on fast compound growth, expanding margins, and a rich future earnings multiple. Curious which assumptions really move the needle in this model and how they tie back to Vertiv's AI data center exposure?

Result: Fair Value of $408.64 (UNDERVALUED)

However, this Vertiv narrative could be tested if hyperscale customers slow AI data center spending, or if rising competition in liquid cooling pressures margins and orders.

Another View on Vertiv Holdings Co’s Valuation

The SWS DCF model points to a fair value of $390.92 for Vertiv Holdings Co, which is about 23.1% above the current $300.53 share price and suggests the stock is undervalued on cash flows. How much weight should you put on this if the growth assumptions do not play out as expected?

Next Steps

Given the mixed signals around Vertiv Holdings Co, this is the moment to look through the numbers yourself and decide how confident you feel about its AI data center story. To see exactly what investors are optimistic about, start by reviewing the 4 key rewards.

Looking for more investment ideas beyond Vertiv?

If Vertiv has sharpened your focus on where capital goes next, do not stop here. Broaden your watchlist with a few more targeted ideas.

• Spot potential value candidates early by scanning the 44 high quality undervalued stocks that pair strong fundamentals with prices that may not fully reflect them.
• Strengthen your income stream by checking out the 7 dividend fortresses that offer higher yields alongside an emphasis on resilience.
• Tighten your focus on stability by reviewing the 74 resilient stocks with low risk scores that score well on financial health and consistency.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.