Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Vertiv Holdings Co's 5-Year RORE % for the quarter that ended in Mar. 2026 was 56.31%.
The industry rank for Vertiv Holdings Co's 5-Year RORE % or its related term are showing as below:
XSWX:VRT's 5-Year RORE % is ranked better than 88.4% of 2664
companies
in the Industrial Products industry
Industry Median: 4.855
vs XSWX:VRT: 56.31
Vertiv Holdings Co (XSWX:VRT) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Vertiv Holdings Co 5-Year RORE % Related Terms
Vertiv Holdings Co 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Vertiv Holdings Co's 5-Year RORE % 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.
For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Vertiv Holdings Co's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Vertiv Holdings Co (XSWX:VRT) has a 5-Year RORE % of 56.31 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Vertiv Holdings Co and its competitors. According to the industry distribution chart, Vertiv Holdings Co ranks #309 out of 2664 companies in the Industrial Products industry, placing it in the top 11.6%.
Is Vertiv Holdings Co's 5-Year RORE % too high?
Vertiv Holdings Co's current 5-Year RORE % is 56.31. The Industrial Products industry median 5-Year RORE % is 4.86. Vertiv Holdings Co's value of 56.31 is 1059.8% above this industry median. Based on the distribution chart, Vertiv Holdings Co ranks #309 out of 2664 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 80/100, reflecting its overall financial health beyond just this single metric.
How does Vertiv Holdings Co's 5-Year RORE % compare to ?
According to the Industrial Products industry distribution chart, Vertiv Holdings Co ranks #309 out of 2664 companies for 5-Year RORE %. This places Vertiv Holdings Co in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 4.86. Vertiv Holdings Co's value of 56.31 is 1059.8% 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 5-Year RORE % for an Industrial Products company?
The median 5-Year RORE % among Industrial Products companies is 4.86, based on 2,664 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertiv Holdings Co's current 5-Year RORE % of 56.31 is 1059.8% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Vertiv Holdings Co and its competitors. For the Industrial Products industry, the median 5-Year RORE % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertiv Holdings Co's current 5-Year RORE % is 56.31. 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 5-Year RORE % of 56.31. The stock's GF Value™ is CHF132.39, compared to a current price of CHF245.15 — trading 85.2% above its estimated fair value. The current 5-Year RORE % is 56.31 and 1059.8% above the Industrial Products industry median of 4.86. Vertiv Holdings Co's overall GF Score™ is 80/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Vertiv Holdings Co (XSWX:VRT), the current 5-Year RORE % is 56.31 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 (XSWX:VRT) Overvalued in 2026?
Based on GuruFocus' analysis, Vertiv Holdings Co stock appears to be overvalued.
The current stock price of CHF245.15 is trading 85.2% above its estimated GF Value™ of CHF132.39.
Key valuation signals for XSWX:VRT:
5-Year RORE %: 56.31
GF Value™: CHF132.39 vs. price of CHF245.15 (85.2% above fair value)
Industry Position: 1059.8% above the Industrial Products median (#309 of 2664)
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.
80GF Score
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