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.

Universe: Healthcare Services · 13 companies
Model
y = 14.86·x + 1.31
n = 13 · R² = 0.589
Most undervalued vs. model
Trading below the regression line
TickerActualModelResidual
MCKMcKesson Corporation0.2x2.8x-91.6%
RDNTRadNet, Inc.2.6x5.8x-55.4%
PHRPhreesia, Inc.1.4x2.8x-50.9%
HNGEHinge Health, Inc.6.3x10.4x-39.5%
TDOCTeladoc Health, Inc.0.6x0.8x-27.1%
Most overvalued vs. model
Trading above the regression line
TickerActualModelResidual
OPKOPKO Health, Inc.1.8x0.7x166.0%
DOCSDoximity, Inc.4.9x2.2x118.6%
NTRANatera, Inc.12.4x6.5x90.0%
GHGuardant Health, Inc.13.7x10.8x26.1%
EXASExact Sciences Corporation5.4x4.7x15.5%