Clarivate (CLVT) shares have been on a challenging stretch, with the stock declining roughly 12% this month and down more than 46% over the past year. Investors are evaluating how recent business trends impact Clarivate’s competitive positioning and long-term potential.

Clarivate’s share price has lost considerable ground, slipping another 12.5% in the past month as sentiment around the business continues to cool. The stock’s momentum remains weak, reflecting both recent investor caution and a long-term total shareholder return of -46.6% over the past year.

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With shares trading well below analyst targets and some improvement in net income growth, the key question is whether Clarivate is now undervalued or if the market is already bracing for slower future gains ahead.

Most Popular Narrative: 30.4% Undervalued

Clarivate’s current share price sits well beneath the most popular narrative's fair value of $5.14. This creates a sizable gap investors are watching closely as they consider future growth scenarios and financial assumptions.

Strong tailwinds from surging global R&D investment, especially in pharma and life sciences, combined with high retention and renewal rates in the A&G and Life Sciences segments, position Clarivate to benefit from expanded demand for research and analytics tools. This supports recurring revenue growth and an improved revenue mix.

Curious how this narrative expects so much upside? The secret sauce lies in major changes to future profitability and revenue mix that could defy today’s market skepticism. Want to see the bold estimates that back up such a high target? The full narrative exposes every core financial bet driving this call.

Result: Fair Value of $5.14 (UNDERVALUED)

However, ongoing higher education funding cuts, along with a shift toward Open Access, could slow subscription growth and challenge Clarivate’s recurring revenue outlook.

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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.