Posted 12/31/2023, 2:16:13 PM
Vertiv's Sky-High P/E Ratio Justified by Forecasted Triple-Digit Earnings Growth
- Vertiv Holdings Co (VRT) has a very high P/E ratio of 72.1x compared to the market average below 16x, which warrants further investigation
- VRT has demonstrated strong recent earnings growth of 249% last year and a forecasted 136% next year, much higher than the market's 10%
- The high P/E ratio is likely justified by investors expecting VRT's stronger growth to continue allowing it to navigate market headwinds
- VRT has had mixed historical earnings growth over the last 3 years, with EPS barely rising overall
- Unless growth expectations fall, the high P/E ratio will likely continue providing strong support to VRT's share price