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: Pharma & Biotech · 3 companies
Model
y = -43.93·x + 5.45
n = 3 · R² = 0.896
Most undervalued vs. model
Trading below the regression line
TickerActualModelResidual
BAYRYBayer AG1.9x2.7x-31.4%
RHHBYRoche Holding AG5.9x5.6x5.0%
GRFSGrifols, S.A.1.9x1.3x44.2%
Most overvalued vs. model
Trading above the regression line
TickerActualModelResidual
GRFSGrifols, S.A.1.9x1.3x44.2%
RHHBYRoche Holding AG5.9x5.6x5.0%
BAYRYBayer AG1.9x2.7x-31.4%