From Seekingalpha · The Value Investor · · 50s
Clarivate Pricing The Worst
Clarivate's share price hits fresh lows despite asset divestment.
In brief
Clarivate's share price hits fresh lows despite asset divestment. Clarivate's share price fell to $1 billion equity value after $600 million life sciences divestment, with valuation at 2x sales and 5x pro forma EBITDA. Originally reported by Seekingalpha.
Clarivate's share price
Clarivate's share price has plunged to fresh lows with equity value now around $1 billion.
Life sciences divestment
Clarivate announced a $600 million divestment of its life sciences & healthcare segment.
Leverage overhang
Clarivate continues to face a significant leverage overhang despite the divestment.
Valuation metrics
Valuation is compelling at just over 2x sales and ~5x pro forma EBITDA.
Key risks
High leverage and a $240 million annual interest bill remain key risks.
Risk-reward outlook
I see the risk-reward as reasonable for a small, highly speculative position.
The short version
Clarivate's share price fell to $1 billion equity value after $600 million life sciences divestment, with valuation at 2x sales and 5x pro forma EBITDA.
