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: Fintech · 20 companies
Model
y = -0.44·x + 4.92
n = 20 · R² = 0.000
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| MQMarqeta, Inc. | 0.9x | 4.8x | -80.6% |
| SQBlock, Inc. | 1.2x | 4.8x | -74.2% |
| PYPLPayPal Holdings, Inc. | 1.5x | 4.9x | -69.5% |
| FOURShift4 Payments, Inc. | 1.6x | 4.8x | -67.4% |
| NUNu Holdings Ltd. | 1.7x | 4.7x | -63.6% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| HOODRobinhood Markets, Inc. | 17.8x | 4.8x | 272.2% |
| VVisa Inc. | 14.0x | 4.8x | 192.2% |
| MAMastercard Incorporated | 12.9x | 4.8x | 167.0% |
| ADYEYAdyen N.V. | 7.5x | 4.8x | 55.1% |
| AFRMAffirm Holdings, Inc. | 6.0x | 4.6x | 30.0% |