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: Consumer Internet, Media & Gaming · 7 companies
Model
y = -1.35·x + 5.37
n = 7 · R² = 0.016
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| MTCHMatch Group, Inc. | 3.5x | 5.3x | -34.0% |
| RBLXRoblox Corporation | 3.3x | 4.6x | -27.1% |
| DUOLDuolingo, Inc. | 3.9x | 5.0x | -23.2% |
| SPOTSpotify Technology S.A. | 4.3x | 5.0x | -15.0% |
| NFLXNetflix, Inc. | 5.7x | 5.1x | 11.4% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| AAPLApple Inc. | 8.9x | 5.1x | 76.1% |
| METAMeta Platforms, Inc. | 5.4x | 4.8x | 11.5% |
| NFLXNetflix, Inc. | 5.7x | 5.1x | 11.4% |
| SPOTSpotify Technology S.A. | 4.3x | 5.0x | -15.0% |
| DUOLDuolingo, Inc. | 3.9x | 5.0x | -23.2% |