Vertiv Holdings CoTSX:VRT +9.34%61 Return-on-Tangible-Equity is 729.04% as of Mar. 2026, which is 112060% above its 10-year median of 0.65. GuruFocus rates TSX:VRT with a GF Score™ of 61/100 and a GF Value™ of C$12.36 (Significantly Overvalued). Among 2,971 Industrial Products companies, Vertiv Holdings Co ranks better than 97.37% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Vertiv Holdings Co's annualized net income for the quarter that ended in Mar. 2026 was C$2,141 Mil. Vertiv Holdings Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$294 Mil. Therefore, Vertiv Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 729.04%.
The historical rank and industry rank for Vertiv Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:
TSX:VRT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.08 Med: 0.65 Max: 680.05
Current: 680.05
During the past 10 years, Vertiv Holdings Co's highest Return-on-Tangible-Equity was 680.05%. The lowest was -4.08%. And the median was 0.65%.
TSX:VRT's Return-on-Tangible-Equity is ranked better than 97.37% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs TSX:VRT: 680.05
Vertiv Holdings Co (TSX:VRT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Vertiv Holdings Co Return-on-Tangible-Equity Related Terms
Vertiv Holdings Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vertiv Holdings Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
TSX:VRT vs BE, HUBB, NVT: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vertiv Holdings Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 729.04% mean?
Vertiv Holdings Co (TSX:VRT) has a Return-on-Tangible-Equity of 729.04% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vertiv Holdings Co and its competitors. This is 112060% above median its historical median of 0.65. According to the industry distribution chart, Vertiv Holdings Co ranks #78 out of 2971 companies in the Industrial Products industry, placing it in the top 2.6%.
Is Vertiv Holdings Co's Return-on-Tangible-Equity too high?
Vertiv Holdings Co's current Return-on-Tangible-Equity of 729.04% is 112060% above median its 10-year median of 0.65. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Vertiv Holdings Co's value of 729.04% is 10748.8% above this industry median. Based on the distribution chart, Vertiv Holdings Co ranks #78 out of 2971 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Vertiv Holdings Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vertiv Holdings Co's Return-on-Tangible-Equity compare to BE and HUBB?
According to the Industrial Products industry distribution chart, Vertiv Holdings Co ranks #78 out of 2971 companies for Return-on-Tangible-Equity. This places Vertiv Holdings Co in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Vertiv Holdings Co's value of 729.04% is 10748.8% above this benchmark. While the company's 10-year median is 0.65 vs. the industry median of 6.72, Vertiv Holdings Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertiv Holdings Co's current Return-on-Tangible-Equity of 729.04% is 10748.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vertiv Holdings Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertiv Holdings Co's current Return-on-Tangible-Equity is 729.04%, which is 112060% above median its own 10-year median of 0.65. 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?
Based on GuruFocus' analysis, Vertiv Holdings Co (TSX:VRT) is currently considered Significantly Overvalued. The stock's GF Value™ is C$12.36, compared to a current price of C$22.41 — trading 81.3% above its estimated fair value. The current Return-on-Tangible-Equity is 729.04%, which is 112060% above median its 10-year median of 0.65 and 10748.8% above the Industrial Products industry median of 6.72. Vertiv Holdings Co's overall GF Score™ is 61/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Vertiv Holdings Co (TSX:VRT), the current Return-on-Tangible-Equity is 729.04% as of Mar. 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 (TSX:VRT) Overvalued in 2026?
Based on GuruFocus' analysis, Vertiv Holdings Co stock appears to be overvalued.
The current stock price of C$22.41 is trading 81.3% above its estimated GF Value™ of C$12.36.
GuruFocus considers Vertiv Holdings Co to be Significantly Overvalued.
Key valuation signals for TSX:VRT:
Return-on-Tangible-Equity: 729.04% (112060% above median its 10-year median of 0.65)
GF Value™: C$12.36 vs. price of C$22.41 (81.3% above fair value)
Industry Position: 10748.8% above the Industrial Products median (#78 of 2971)
No single metric tells the full story. See the TSX: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.
61GF Score
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