Clarivate (CLVT): Examining Valuation Following Strategic Alternatives Review and New Profitability Focus

Clarivate (NYSE:CLVT) rolled out its Q4 and full-year 2024 results along with news of a strategic alternatives review, sparking investor interest. The review could signal significant changes in Clarivate’s business direction and priorities.

See our latest analysis for Clarivate.

Clarivate’s strategic review announcement has stirred the market, but momentum lately has been on the back foot, with a 1-year total shareholder return of -43.2% and a 3-year figure at -64.9%. Even so, the focus on streamlining operations and shifting toward higher-margin analytics has fueled chatter about a potential turnaround. Investors are watching to see whether these changes can revive the share price after such a challenging run.

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But with analysts seeing upside from current levels and the stock trading at a steep discount, the question remains: Is Clarivate truly undervalued, or is the market already factoring in the company’s future prospects?

Most Popular Narrative: 29% Undervalued

With Clarivate’s most popular narrative putting its fair value at $5.14, and the stock last closing at $3.65, advocates see nearly a third upside from current prices. This sets the stage for hard questions: does the business transformation truly merit a rebound, or is the market missing something?

Rapid expansion and adoption of AI-driven product innovation across all segments (including new AI-powered analytics in Web of Science, Derwent, and Cortellis) enhances product differentiation and workflow integration, driving higher pricing, customer retention, and potentially expanding gross margins.

Read the complete narrative.

How can so much future value ride on the promise of innovation? The numbers behind this bold valuation lean on a dramatic pivot to recurring revenues and much fatter profit margins. Curious which assumptions anchor this ambitious fair value? The narrative reveals what makes the case so bullish if you know where to look.

Result: Fair Value of $5.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing funding constraints and the rapid move toward free data in academic research could challenge Clarivate’s recurring revenue ambitions and margin growth.

Find out about the key risks to this Clarivate narrative.

Build Your Own Clarivate Narrative

If you want to dig into the figures yourself and see things from another angle, you can assemble your own Clarivate story in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Clarivate.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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