The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,260 M
Debt : $3,150 M
EBITDA : $1,660 M
Net Debt (Debt - Cash): $1,890 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Electrical Equipment & Parts
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.63
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $74 M
Average Revenue: $3,561 M
Free Cash Flow to Revenue : 2 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2023-12-31): $6,667 M
Revenue 4 Years Ago (2019-12-31): $0 M
Revenue Growth: 0%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2023-12-31): $382 M
Share Count 5 Years Ago (2019-12-31): $118 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $4.02
Dividend Per Share (DPS): $0
Payout Ratio: 3%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -7%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $87
52-Week Low: $62
Threshold Price (15% Above 52-Week Low): $72
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $28,273 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 12 points to above Vertiv Holdings Co (VRT) stock.
Value-Trades has assined P/E value 12. Since current year earning per share is $4.02.
The fair value of Vertiv Holdings Co (VRT) stock should be (12 x $4.02) = $48.24
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