Clarivate Plc (CLVT): A Bull Case Theory

We came across a bullish thesis on Clarivate Plc on The Value Road’s Substack. In this article, we will summarize the bulls’ thesis on CLVT. Clarivate Plc's share was trading at $3.6000 as of October 14th. CLVT’s forward P/E was 5.48 according to Yahoo Finance.

Clarivate’s Q4/FY 2024 results revealed that the company has initiated a review of strategic alternatives, signaling a potential refocusing of its business in 2025, though no specific actions or timelines have been committed to. The company’s market capitalization stands at approximately $2.6 billion, with an enterprise value of around $6.8 billion, reflecting an EV/EBITDA multiple of 9.5× and a P/B ratio of 0.8×. The strategic review could involve divesting non-core academic and IP management units, using the proceeds to deleverage the balance sheet, and concentrating on high-margin analytics offerings.

By shedding lower-margin or non-core businesses, Clarivate could streamline operations, improve profitability, and reduce financial leverage, positioning the company for stronger long-term performance. If executed successfully, the combination of asset sales, deleveraging, and margin expansion could unlock significant shareholder value, with analysts estimating potential upside of 25–40% as the market reassesses the company’s more focused and efficient structure. This review comes at a time when Clarivate’s valuation metrics suggest the stock may be materially undervalued relative to its peers, offering an attractive entry point for investors seeking both operational improvement and capital appreciation.

The strategic clarity gained from the review, alongside the possibility of strengthening the balance sheet, could serve as key catalysts for rerating the stock, creating an opportunity for both equity and credit investors to benefit from the company’s potential transformation. Overall, Clarivate presents a compelling investment case driven by operational refocusing, financial optimization, and clear upside potential in a rapidly evolving analytics market.

Previously we covered a bullish thesis on Steel Dynamics, Inc. (STLD) by Gregg Jahnke in February 2025, highlighting operational efficiency, a strong balance sheet, and strategic growth initiatives. The stock has appreciated approximately 10.61% since our coverage. The thesis still stands as STLD’s fundamentals remain strong. The Value Road shares a similar perspective but emphasizes Clarivate’s strategic review, divestitures, and deleveraging to unlock shareholder value.

Clarivate Plc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held CLVT at the end of the second quarter which was 25 in the previous quarter. While we acknowledge the potential of CLVT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.