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: Cybersecurity · 12 companies
Model
y = 27.34·x + 1.20
n = 12 · R² = 0.248
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| ZSZscaler, Inc. | 6.3x | 13.8x | -54.3% |
| NTSKNetskope, Inc. Class A Common Stock | 5.4x | 11.6x | -53.7% |
| SSentinelOne, Inc. | 4.9x | 9.6x | -49.1% |
| CLBTCellebrite DI Ltd. | 5.6x | 9.9x | -43.5% |
| VRNSVaronis Systems, Inc. | 5.9x | 9.8x | -40.3% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| CRWDCrowdStrike Holdings, Inc. | 31.7x | 11.4x | 178.3% |
| RPDRapid7, Inc. | 1.2x | 0.5x | 137.7% |
| QLYSQualys, Inc. | 6.8x | 4.7x | 45.0% |
| PANWPalo Alto Networks, Inc. | 21.1x | 14.9x | 41.4% |
| OKTAOkta, Inc. | 6.7x | 5.3x | 26.3% |