VRT Earnings Analysis

Attempting to do a Discounted Earnings Valuation based on limited history with the last two years of explosive growth.

Current TTM PE Ratio is 78.28

TTM EPS is 3.98

Assuming a 15% discount rate and that VRT maintains PE ratio of 78, then VRT would need to grow at 17% every year for 5 years to reach a terminal discounted stock price of ~$330/share.

Maybe if the PE ratio drops into a more common range, say 50, then growth would need to be 30% every year.

So VRT seems likely overvalued already at $330/share since yearly growth of 20-30% would be very high. But if the growth is there it could still be a reasonable buy. Basically, we would be relying heavily on the rapid growth + hype of the Data Center / AI buildout.