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
Universe: Application Software · 71 companies
Model
y = 16.13·x + 0.38
n = 71 · R² = 0.510
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| COURCoursera, Inc. | 0.1x | 14.3x | -99.4% |
| SMRTSmartRent, Inc. | 0.6x | 3.8x | -85.0% |
| LAWCS Disco, Inc. | 0.9x | 3.4x | -73.8% |
| ZETAZeta Global Holdings Corp. | 3.1x | 8.5x | -63.9% |
| SPTSprout Social, Inc. | 0.9x | 2.4x | -63.8% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| DBXDropbox, Inc. | 4.5x | 0.3x | 1410.3% |
| OTEXOpen Text Corporation | 2.2x | 0.3x | 796.3% |
| YEXTYext, Inc. | 1.8x | 0.4x | 407.4% |
| DOMODomo, Inc. | 0.9x | 0.2x | 343.1% |
| ZMZoom Communications, Inc. | 4.3x | 1.5x | 192.9% |