CLVT
CLARIVATE PLC
Price:  
3.62 
USD
Volume:  
8,578,242.00
United Kingdom | Professional Services
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CLVT WACC - Weighted Average Cost of Capital

The WACC of CLARIVATE PLC (CLVT) is 9.4%.

The Cost of Equity of CLARIVATE PLC (CLVT) is 8.25%.
The Cost of Debt of CLARIVATE PLC (CLVT) is 10.40%.

Range Selected
Cost of equity 6.70% - 9.80% 8.25%
Tax rate 2.10% - 3.70% 2.90%
Cost of debt 5.20% - 15.60% 10.40%
WACC 5.7% - 13.2% 9.4%
WACC

CLVT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.62 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.80%
Tax rate 2.10% 3.70%
Debt/Equity ratio 1.81 1.81
Cost of debt 5.20% 15.60%
After-tax WACC 5.7% 13.2%
Selected WACC 9.4%

CLVT's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CLVT:

cost_of_equity (8.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.62) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.