Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Vertiv Holdings Co (VRT)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$40.92 - $76.44$55.42
Multi-Stage$35.55 - $38.90$37.19
Blended Fair Value$46.30
Current Price$150.86
Upside-69.31%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS-83.64%0.00%0.110.020.010.010.01925.620.002.630.000.00
YoY Growth--344.21%150.00%0.00%15.15%-100.00%0.00%-100.00%0.00%0.00%0.00%
Dividend Yield--0.15%0.03%0.07%0.07%0.04%10,700.86%0.00%26.71%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,034.20
(-) Cash Dividends Paid (M)56.70
(=) Cash Retained (M)977.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)206.84129.2877.57
Cash Retained (M)977.50977.50977.50
(-) Cash Required (M)-206.84-129.28-77.57
(=) Excess Retained (M)770.66848.23899.94
(/) Shares Outstanding (M)389.17389.17389.17
(=) Excess Retained per Share1.982.182.31
LTM Dividend per Share0.150.150.15
(+) Excess Retained per Share1.982.182.31
(=) Adjusted Dividend2.132.332.46
WACC / Discount Rate9.71%9.71%9.71%
Growth Rate4.29%5.29%6.29%
Fair Value$40.92$55.42$76.44
Upside / Downside-72.87%-63.27%-49.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,034.201,088.881,146.461,207.081,270.901,338.101,378.24
Payout Ratio5.48%22.39%39.29%56.19%73.10%90.00%92.50%
Projected Dividends (M)56.70243.76450.44678.29928.981,204.291,274.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.71%9.71%9.71%
Growth Rate4.29%5.29%6.29%
Year 1 PV (M)220.08222.19224.30
Year 2 PV (M)367.19374.27381.41
Year 3 PV (M)499.23513.73528.51
Year 4 PV (M)617.33641.35666.07
Year 5 PV (M)722.55757.87794.55
PV of Terminal Value (M)11,407.4511,964.9612,544.06
Equity Value (M)13,833.8314,474.3715,138.89
Shares Outstanding (M)389.17389.17389.17
Fair Value$35.55$37.19$38.90
Upside / Downside-76.44%-75.35%-74.21%

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