Is Clarivate Plc overvalued or undervalued?

As of 27 February 2024, the valuation grade for Clarivate Plc has moved from fair to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued based on its current metrics, with a Price to Book Value of 0.59, an EV to EBITDA of 7.46, and a ROCE of just 2.43%. In comparison to peers, Medpace Holdings, Inc. has a much higher P/E ratio of 33.13, while Genpact Ltd. stands at a fair valuation with a P/E of 14.38, highlighting Clarivate's relative weakness.
The stock has underperformed significantly against the S&P 500, with a year-to-date return of -19.09% compared to the index's 12.22%. Over the past three years, Clarivate's stock has declined by 61.12%, while the S&P 500 has gained 70.41%, reinforcing the notion that the company is struggling in the current market environment.