Regression valuation
Fit an ordinary least squares regression of a valuation multiple against a fundamental driver. Each company's residual quantifies how much it trades above or below where the comp set says it should. Inspired by Meritech's growth-adjusted multiple framework.Snapshot: 2026-08-04.
All sectorsApplication SoftwareInfrastructure & Data SoftwareCybersecurityFintechInternet & Digital CommerceConsumer Internet, Media & GamingHealthcare ServicesMedical Devices & DiagnosticsSemiconductorsPharma & BiotechIndustrial, Aerospace & DefenseFinancial ServicesBusiness ServicesUtilitiesEnergyMaterialsTransportationConsumer DiscretionaryConsumer StaplesReal EstateCommunications & Telecom
Model
y = 7.16·x + 3.21
n = 221 · R² = 0.148
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| COURCoursera, Inc. | 0.1x | 9.4x | -99.0% |
| MCKMcKesson Corporation | 0.2x | 3.9x | -94.1% |
| COMPCompass, Inc. | 0.8x | 11.1x | -93.3% |
| FUJIYFUJIFILM Holdings Corporation | 0.2x | 3.3x | -92.5% |
| OPENOpendoor Technologies Inc. | 0.6x | 5.4x | -89.4% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| CRWDCrowdStrike Holdings, Inc. | 31.7x | 5.9x | 438.8% |
| NETCloudflare, Inc. | 32.5x | 6.9x | 373.2% |
| DDOGDatadog, Inc. | 20.2x | 6.3x | 220.7% |
| HOODRobinhood Markets, Inc. | 17.8x | 5.6x | 218.8% |
| PANWPalo Alto Networks, Inc. | 21.1x | 6.8x | 210.0% |