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: Semiconductors · 6 companies
Model
y = 0.91·x + 8.80
n = 6 · R² = 0.064
Most undervalued vs. model
Trading below the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| MKSIMKS Inc. | 4.9x | 9.1x | -46.8% |
| COHRCoherent, Inc. | 6.5x | 9.5x | -30.9% |
| LITELumentum Holdings Inc. | 11.2x | 11.2x | -0.1% |
| AMATApplied Materials, Inc. | 10.6x | 9.2x | 14.8% |
| ADIAnalog Devices, Inc. | 11.5x | 9.3x | 23.9% |
Most overvalued vs. model
Trading above the regression line
| Ticker | Actual | Model | Residual |
|---|---|---|---|
| ASMLASML Holding N.V. | 12.9x | 9.3x | 39.1% |
| ADIAnalog Devices, Inc. | 11.5x | 9.3x | 23.9% |
| AMATApplied Materials, Inc. | 10.6x | 9.2x | 14.8% |
| LITELumentum Holdings Inc. | 11.2x | 11.2x | -0.1% |
| COHRCoherent, Inc. | 6.5x | 9.5x | -30.9% |