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: Industrial, Aerospace & Defense · 26 companies
Model
y = -2.11·x + 4.58
n = 26 · R² = 0.013
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| BTUPeabody Energy Corporation | 0.6x | 4.2x | -86.3% |
| NRGNRG Energy, Inc. | 1.4x | 4.3x | -68.3% |
| MTZMasTec, Inc. | 1.2x | 3.7x | -67.0% |
| ITRIItron, Inc. | 1.6x | 4.5x | -64.3% |
| LMTLockheed Martin Corporation | 1.8x | 4.3x | -57.8% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| LASRnLIGHT, Inc. | 12.4x | 4.0x | 208.2% |
| CCJCameco Corporation | 10.9x | 4.4x | 147.3% |
| SRESempra | 6.8x | 4.6x | 48.0% |
| DDominion Energy, Inc. | 6.0x | 4.3x | 40.8% |
| NEENextEra Energy, Inc. | 5.8x | 4.2x | 38.7% |