Vertiv Stock Drop Looks Sharp, But How Deep Can It Go?
Vertiv (VRT) stock is down 5.2% in a day. The recent slide reflects renewed concerns around cloud operators building proprietary cooling and softness in APAC/EMEA, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Vertiv stands today.
- Size: Vertiv is a $93 Bil company with $10 Bil in revenue currently trading at $244.44.
- Fundamentals: Last 12 month revenue growth of 27.7% and operating margin of 18.5%.
- Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.15
- Valuation: Vertiv stock is currently trading at P/E multiple of 70.1 and P/EBIT multiple of 51.1
- Has returned (median) 150% within a year following sharp dips since 2010. See VRT Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell VRT Stock
That brings us to the key consideration for investors worried about this fall: how resilient is VRT stock if markets turn south? This is where our downturn resilience framework comes in. Suppose VRT stock falls another 20-30% to $171 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- VRT stock fell 71.2% from a high of $28.59 on 2 September 2021 to $8.22 on 30 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 2 August 2023
- Since then, the stock increased to a high of $262.19 on 25 February 2026 , and currently trades at $244.44
| VRT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -71.2% | -25.4% |
| Time to Full Recovery | 398 days | 464 days |
2020 Covid Pandemic
- VRT stock fell 58.6% from a high of $13.46 on 19 February 2020 to $5.57 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 2 June 2020
| VRT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.6% | -33.9% |
| Time to Full Recovery | 76 days | 148 days |
2018 Correction
- VRT stock fell 3.4% from a high of $10.06 on 27 November 2018 to $9.72 on 14 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 April 2019
| VRT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -3.4% | -19.8% |
| Time to Full Recovery | 122 days | 120 days |
Feeling jittery about VRT stock? Consider portfolio approach.
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