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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Vertiv Holdings Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Vertiv Holdings Co's Degree of Operating Leverage or its related term are showing as below:
XSWX:VRT's Degree of Operating Leverage is ranked worse than 65.98% of 2978
companies
in the Industrial Products industry
Industry Median: 1.04
vs XSWX:VRT: 2.47
Vertiv Holdings Co (XSWX:VRT) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Vertiv Holdings Co Degree of Operating Leverage Related Terms
Vertiv Holdings Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Vertiv Holdings Co's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vertiv Holdings Co Degree of Operating Leverage Chart
XSWX:VRT vs BE, HUBB, NVT: Degree of Operating Leverage Comparison
For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vertiv Holdings Co Degree of Operating Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Vertiv Holdings Co's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.47 mean?
Vertiv Holdings Co (XSWX:VRT) has a Degree of Operating Leverage of 2.47 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vertiv Holdings Co and its competitors. According to the industry distribution chart, Vertiv Holdings Co ranks #1965 out of 2978 companies in the Industrial Products industry, placing it in the top 66%.
Is Vertiv Holdings Co's Degree of Operating Leverage too high?
Vertiv Holdings Co's current Degree of Operating Leverage is 2.47. The Industrial Products industry median Degree of Operating Leverage is 1.04. Vertiv Holdings Co's value of 2.47 is 137.5% above this industry median. Based on the distribution chart, Vertiv Holdings Co ranks #1965 out of 2978 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Vertiv Holdings Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Vertiv Holdings Co's Degree of Operating Leverage compare to BE and HUBB?
According to the Industrial Products industry distribution chart, Vertiv Holdings Co ranks #1965 out of 2978 companies for Degree of Operating Leverage. This places Vertiv Holdings Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.04. Vertiv Holdings Co's value of 2.47 is 137.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 1.04, based on 2,978 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertiv Holdings Co's current Degree of Operating Leverage of 2.47 is 137.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vertiv Holdings Co and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertiv Holdings Co's current Degree of Operating Leverage is 2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertiv Holdings Co stock overvalued right now?
Vertiv Holdings Co (XSWX:VRT) has a current Degree of Operating Leverage of 2.47. The stock's GF Value™ is CHF137.45, compared to a current price of CHF223.50 — trading 62.6% above its estimated fair value. The current Degree of Operating Leverage is 2.47 and 137.5% above the Industrial Products industry median of 1.04. Vertiv Holdings Co's overall GF Score™ is 86/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Vertiv Holdings Co (XSWX:VRT), the current Degree of Operating Leverage is 2.47 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vertiv Holdings Co (XSWX:VRT) Overvalued in 2026?
Based on GuruFocus' analysis, Vertiv Holdings Co stock appears to be overvalued.
The current stock price of CHF223.50 is trading 62.6% above its estimated GF Value™ of CHF137.45.
Key valuation signals for XSWX:VRT:
Degree of Operating Leverage: 2.47
GF Value™: CHF137.45 vs. price of CHF223.50 (62.6% above fair value)
Industry Position: 137.5% above the Industrial Products median (#1965 of 2978)
No single metric tells the full story. See the XSWX:VRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vertiv has roots tracing back to 1946 when its founder, Ralph Liebert, developed an air-cooling system for mainframe data rooms. As computers started making their way into commercial applications in 1965, Liebert developed one of the first computer room air conditioning, or CRAC, units, enabling the precise control of temperature and humidity. The firm has slowly expanded its data center portfolio through internal product development and the acquisition of thermal and power management products like condensers, busways, and switches. Vertiv has global operations today; its products can be found in data centers in most regions throughout the world.
86GF Score
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