TLDR
- VRT is up 89.65% year-to-date, trading at $333.05 with a market cap of $121.99 billion
- One widely followed fair value estimate puts VRT at $408.64, implying an 18.5% discount to intrinsic value
- Vertiv raised its 2026 guidance and acquired ThermoKey and Strategic Thermal Labs
- The stock carries a P/E of 82.1x, more than double the US Electrical industry average of 39.7x
- Jim Cramer says he doesn’t think “it’s over” for VRT, pointing to strong order flow from chairman Dave Cote
Vertiv Holdings (VRT) has been one of the standout performers of 2026, climbing nearly 90% year-to-date to $333.05. The question now is whether there’s still room to run.
A widely followed fair value narrative pegs VRT at $408.64, putting today’s price at an 18.5% discount to that estimate. The bull case rests on Vertiv’s $15 billion backlog, its co-development work with NVIDIA, and the ongoing shift toward liquid cooling in AI data centers.
The company has also raised its full-year 2026 guidance and completed two acquisitions — ThermoKey and Strategic Thermal Labs — both of which strengthen its position in thermal management for high-density computing environments.
Vertiv’s average analyst price target sits around $380, roughly 13.6% above current levels. Even after the big run, the stock is still trading below where the street thinks it should be.
The Valuation Problem
The bear case is harder to ignore at these levels. VRT trades at a P/E of 82.1x. That’s more than double the US Electrical industry average of 39.7x and well above the peer average of 40x.
The model-derived “fair” P/E sits around 62.5x, meaning the stock is already pricing in a lot of execution. Any stumble on margins or revenue growth could reset expectations quickly.
There’s also customer concentration risk. Vertiv’s revenue is heavily tied to a handful of hyperscale customers. If AI capex spending slows or one of those customers pulls back, the impact on Vertiv would be outsized.
Competition in liquid cooling is heating up too. As the market grows, more players are entering, which could compress pricing and margins down the road.
What Jim Cramer Said
On June 19, Jim Cramer weighed in on VRT during his show. He acknowledged the stock has pulled back recently, attributing some of the selling to rotation into SpaceX-related plays.
“I do not think it’s over,” Cramer said. “I just think that a lot of companies like Vertiv have seen their stock go down as people sell Vertiv in order to have enough money to buy the king of the data center.”
Cramer also pointed to comments from Vertiv chairman Dave Cote, who he said told “a very positive story about a huge number of orders” when speaking publicly the week prior.
VRT was up 4.87% on June 19 at the time of Cramer’s comments.
The stock’s $15 billion backlog and its role supplying power and cooling infrastructure to AI data centers remain the core of the bull case heading into the second half of 2026.
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