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: Internet & Digital Commerce · 13 companies
Model
y = 9.25·x + 1.81
n = 13 · R² = 0.340
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| LYFTLyft, Inc. | 0.7x | 4.1x | -81.7% |
| TRIPTripadvisor, Inc. | 0.9x | 2.0x | -54.5% |
| UBERUber Technologies, Inc. | 2.4x | 3.8x | -37.4% |
| SABRSabre Corporation | 1.5x | 2.4x | -36.9% |
| EXPEExpedia Group, Inc. | 1.9x | 3.0x | -36.6% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| ETSYEtsy, Inc. | 3.5x | 1.7x | 100.5% |
| BKNGBooking Holdings Inc. | 4.9x | 3.2x | 54.3% |
| SHOPShopify Inc. | 9.0x | 6.0x | 49.9% |
| ABNBAirbnb, Inc. | 5.3x | 3.8x | 41.4% |
| EBAYeBay Inc. | 4.1x | 3.0x | 36.5% |