- This article walks through the key numbers so you can judge for yourself whether Clarivate's current share price reflects its true worth or if the market is still mispricing the story.
- Over the past month, Clarivate's share price is up 25.7%, although the stock still shows a 20.1% decline year to date and a 35.1% decline over the last year, with longer term returns over 3 and 5 years also in negative territory.
- Recent coverage around Clarivate has focused on its role as a data and analytics provider and how the business is repositioning within the broader information services space. This background helps explain why the stock has attracted renewed attention even after a 73.5% 3 year and 90.1% 5 year return decline.
- On our framework, Clarivate scores a 5/6 valuation score, which suggests the market price lines up with several measures of undervaluation. Next we walk through the main valuation approaches before finishing with a more holistic way to think about what that score really means.
Find out why Clarivate's -35.1% return over the last year is lagging behind its peers.
Approach 1: Clarivate Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and then discounting those back to today’s value.
For Clarivate, the model uses a 2 Stage Free Cash Flow to Equity approach. The company’s last twelve month free cash flow is about $373.1 million, and analysts provide explicit forecasts out to 2027, including $402.5 million in 2026 and $439.2 million in 2027. Beyond that, Simply Wall St extrapolates cash flows out to 2035, with projected free cash flow of $595.8 million in that year, all expressed in US$.
When all those projected cash flows are discounted back and summed, the model arrives at an estimated intrinsic value of $6.76 per share. Compared with the current share price, this implies Clarivate is trading at a 61.7% discount, which points to the shares being undervalued on this DCF framework.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Clarivate is undervalued by 61.7%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks.
Approach 2: Clarivate Price vs Sales
For companies where investors pay close attention to revenue, the P/S ratio is a useful way to judge what the market is willing to pay for each dollar of sales, especially when earnings are not the main focus.
What counts as a “normal” or “fair” multiple largely reflects how much growth investors expect and how much risk they see. Higher growth and lower perceived risk usually support a higher multiple, while slower growth or higher uncertainty usually point to a lower one.
Clarivate currently trades on a P/S of 0.68x. That sits below the Professional Services industry average of 1.07x, and also below the peer average of 1.33x, so the market is pricing Clarivate’s revenue at a lower level than these benchmarks. Simply Wall St’s Fair Ratio for Clarivate is 1.50x, which is its proprietary estimate of what the P/S might be given factors like earnings growth, profit margins, industry, market cap and specific risks.
Because the Fair Ratio builds these company specific factors into a single number, it can give you a more tailored yardstick than a simple peer or industry comparison. With the Fair Ratio of 1.50x sitting above the current 0.68x, this framework points to Clarivate looking undervalued on a sales basis.
Result: UNDERVALUED
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Upgrade Your Decision Making: Choose your Clarivate Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simple stories you create around a stock like Clarivate that tie your view of its business, your assumptions about future revenue, earnings and margins, and your estimate of fair value into one clear picture.
A Narrative links what you believe about a company, for example Clarivate as the backbone of intellectual property and research workflows or as a business facing rising AI competition and funding pressure, to a set of numbers in a forecast and then to a fair value that you can compare directly with today’s share price.
On Simply Wall St’s Community page, millions of investors use Narratives as an accessible tool. Each Clarivate Narrative updates automatically when new news or earnings are added and helps its author decide whether the current price looks attractive, stretched, or somewhere in between relative to their own fair value estimate.
For Clarivate right now, one Community Narrative might lean toward the optimistic analyst fair value of about US$7.00, while another leans toward the cautious end around US$3.75. Seeing that spread side by side can help you decide which story and set of assumptions feels more realistic for you.
Do you think there's more to the story for Clarivate? Head over to our Community to see what others are saying!
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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