CLVT
CLARIVATE PLC
Price:  
4.40 
USD
Volume:  
3,439,635.00
United Kingdom | Professional Services
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CLVT WACC - Weighted Average Cost of Capital

The WACC of CLARIVATE PLC (CLVT) is 11.6%.

The Cost of Equity of CLARIVATE PLC (CLVT) is 10.00%.
The Cost of Debt of CLARIVATE PLC (CLVT) is 13.05%.

Range Selected
Cost of equity 8.70% - 11.30% 10.00%
Tax rate 2.10% - 3.70% 2.90%
Cost of debt 5.20% - 20.90% 13.05%
WACC 6.5% - 16.6% 11.6%
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 1.05 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.30%
Tax rate 2.10% 3.70%
Debt/Equity ratio 1.53 1.53
Cost of debt 5.20% 20.90%
After-tax WACC 6.5% 16.6%
Selected WACC 11.6%

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 (10.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.05) + 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.