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: Financial Services · 5 companies
Model
y = 0.64·x + 2.08
n = 5 · R² = 0.015
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| OPENOpendoor Technologies Inc. | 0.6x | 2.3x | -75.0% |
| COMPCompass, Inc. | 0.8x | 2.8x | -73.1% |
| RDFNRedfin Corporation | 2.0x | 2.1x | -8.0% |
| BETRBetter Home & Finance Holding Company | 3.2x | 2.4x | 34.7% |
| RKTRocket Companies, Inc. | 5.7x | 2.6x | 119.8% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| RKTRocket Companies, Inc. | 5.7x | 2.6x | 119.8% |
| BETRBetter Home & Finance Holding Company | 3.2x | 2.4x | 34.7% |
| RDFNRedfin Corporation | 2.0x | 2.1x | -8.0% |
| COMPCompass, Inc. | 0.8x | 2.8x | -73.1% |
| OPENOpendoor Technologies Inc. | 0.6x | 2.3x | -75.0% |