Current Price
$11.93
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Sunrun Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for RUNSunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.
ROIC (TTM)
-0.5%
ROE (TTM)
15.5%
FCF Yield
-39.16%
Based on trailing twelve-month data, RUN shows a free cash flow per share of N/A and a ROIC of -0.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -39.16% are important context metrics when evaluating RUN's stock valuation relative to peers.
The intrinsic value of RUN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether RUN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $11.93. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Sunrun Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Solar industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting RUN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Sunrun Inc., this means projecting how much free cash flow the Solar will produce over the next 5-10 years, then discounting those amounts to today's dollars. RUN's ROIC of -0.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For RUN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
