Clarivate PLC: A Busted IPO

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Clarivate PLC is a London-based company that provides data and analytics to the scientific and intellectual property markets. Since going public, the stock has fallen sharply, and is now down 70% from its highs. The company has been hurt by slowing growth and concerns about its high level of debt.

Clarivate is a classic example of a company that grew through acquisitions made at lofty levels. The subsequent decline in the stock has landed it squarely in Busted IPO territory.

Stock Price

Clarivate Plc Stock Fair Value – Clarivate ($NYSE:CLVT) PLC, a provider of data and insights on the global intellectual property market, went public on Tuesday. The stock opened at $9.5 and closed at $9.3, up 1.0% from its last closing price of $9.2. This was Clarivate’s first day of trading on the Nasdaq Stock Market, and it was a bust. The stock failed to meet expectations, as investors were hoping for a bigger pop given the strong performance of other recent IPOs. Investors are apparently worried about Clarivate’s growth prospects, as the company is facing fierce competition from the likes of Thomson Reuters and Bloomberg.

Clarivate also has a large debt load, which could weigh on its future earnings. Despite the disappointing debut, Clarivate CEO Jerre Stead remains optimistic about the company’s prospects. He believes that Clarivate is well-positioned to capitalize on the growing demand for IP data and insights. Only time will tell if Clarivate can live up to its IPO hype. For now, the company is off to a very rocky start.

VI Analysis – Clarivate Plc Stock Fair Value

Clarivate plc is a publicly traded company with a market capitalization of $9.3 billion. The company’s fundamentals reflect its long term potential, and the intrinsic value of Clarivate’s shares are around $27.7, according to the VI Line. This means that the stock is currently undervalued by 66%.

VI Peers

The competitive landscape in the global market for research and development (R&D) analytics is expected to heat up in the coming years. This is due to the recent acquisition of Thomson Reuters Corporation’s IP & Science business by Clarivate PLC. The move is expected to give Clarivate a significant edge over its competitors, Atos SE, Coforge Ltd, Also Holding AG, in the global market for research and development (R&D) analytics.

– Atos SE ($OTCPK:AEXAY)

Atos SE is a French multinational information technology services company with headquarters in Bezons and offices in France, Spain, and India. It is one of the largest IT services companies in the world with a market cap of 972.75M as of 2022. The company has a Return on Equity of -44.22%. Atos provides a full range of services including consulting, systems integration, managed services, and cloud operations. The company works with clients in a variety of industries including healthcare, government, financial services, and manufacturing.

– Coforge Ltd ($BSE:532541)

Coforge Ltd is an Indian multinational corporation that provides Information Technology services, including digital, technology, consulting, and operations services. It is headquartered in Pune, India. As of March 2021, the company had a market capitalization of ₹17.29 trillion (US$233.97 billion) and an annual revenue of ₹1.39 trillion (US$19.1 billion). It is one of the Big Four tech companies in India along with Tata Consultancy Services (TCS), Infosys, and Wipro. As of 2020, Coforge is the sixth-largest IT services company in the world by revenue. The company has over 190,000 employees across 42 countries. Coforge’s market cap and ROE are both very impressive, especially considering the company’s size. The company has a long history and a large customer base, which gives it a competitive advantage in the market. Coforge is a well-diversified company, with a strong presence in both developed and emerging markets. The company has a strong focus on innovation and has been investing heavily in research and development. This has helped Coforge to maintain its leading position in the IT services industry.

– Also Holding AG ($LTS:0QLW)

Given that the company has a market cap of 1.93B as of 2022, a return on equity of 14.87%, and is involved in the production of packaging materials and containers, it would appear that it is a well-established and successful company. The company’s market cap and ROE are both impressive, and its involvement in the production of packaging materials and containers suggests that it has a strong and diversified product offering. The company appears to be well-positioned for continued success in the future.

Summary

Clarivate PLC is a global information services company. It offers a suite of research and analytical products and services to help its customers accelerate innovation. The company operates in four segments: Scientific & Academic Research, Pharmaceutical & Biotech, Health Care, and Business. The stock has not done well since going public. There are a number of reasons why Clarivate PLC’s stock has underperformed.

First, the company’s revenue growth has been slowing down. This is a big slowdown from the double-digit growth rates the company was posting a few years ago. Second, Clarivate PLC is facing increasing competition from other research and analytics providers. These competitors are offering similar products and services at lower prices, which is putting pressure on Clarivate PLC’s margins. Third, the company has a large amount of debt. This is a big risk for investors as it increases the chance that the company will default on its debt payments if its business deteriorates further. Given all of these factors, it is no surprise that Clarivate PLC’s stock has been a big disappointment for investors. If you are thinking about investing in the company, you should be aware of all of these risks before making a decision.