Current Price
$12.89
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Scale and Market Leadership
As America's largest provider of home solar and battery storage, Sunrun benefits from significant scale in procurement and installation. This leadership position allows for greater brand recognition and customer trust.
↑Recurring Revenue Model
Sunrun is transitioning to a distributed energy infrastructure platform with contracted cash flows. This shift towards recurring revenue from solar leases and power purchase agreements provides stability and predictability.
↑Brand Reputation and Awards
Recognition on lists like Fortune 1000 and TIME's World's Most Impactful Companies, along with Buyer's Choice Awards for customer service, bolsters Sunrun's brand and customer perception.
INVESTMENT RISKS
↓Interest Rate Sensitivity
The solar industry, particularly companies relying on financing for installations, is sensitive to interest rate fluctuations. Higher rates can increase borrowing costs and impact affordability for customers.
↓Regulatory and Policy Changes
Government incentives, net metering policies, and environmental regulations significantly influence the solar market. Unfavorable changes can impact demand and profitability.
↓Competition and Installation Costs
The residential solar market is competitive, with numerous installers. Managing installation costs and maintaining efficiency is crucial to profitability amidst potential price pressures.
Customize the RUN valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Sunrun Inc. respond.
Open DCF Calculator for RUNCompany Overview
Sunrun Inc. is a company operating in the United States that specializes in providing comprehensive residential solar energy solutions. Their services encompass the entire lifecycle of a solar system, from initial design and development through installation, sales, ongoing ownership, and maintenance. In addition to complete solar energy systems, Sunrun also offers individual components like solar panels and racking equipment. They further enhance their offerings by integrating battery storage capabilities with their solar installations. Residential homeowners are the primary clientele for Sunrun. The company utilizes a direct-to-consumer sales approach, employing a broad spectrum of marketing and sales channels, including online platforms, retail partnerships, mass and digital media advertising, door-to-door canvassing, field marketing, and referral programs. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.
Financial Metrics — RUN Stock Valuation Data
Revenue/Share (TTM)
$13.53
FCF/Share (TTM)
$-3.20
ROIC (TTM)
-0.3%
ROE (TTM)
18.4%
P/FCF
n/m
EV/EBITDA
23.0x
FCF Yield
-24.41%
Debt/Equity
4.45x
RUN currently has negative free cash flow, so cash-flow ratios such as P/FCF and FCF yield do not give a meaningful read on whether the stock is cheap or expensive. A DCF valuation is unreliable until cash generation turns positive — focus on the path to profitability instead.
Frequently Asked Questions
What is the intrinsic value of RUN?
Sunrun Inc. currently generates $-3.20 in free cash flow per share. At the current price of $12.89, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is RUN undervalued?
RUN currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value RUN stock using DCF?
To perform a DCF valuation on Sunrun Inc.: (1) Start with the trailing free cash flow per share ($-3.20) 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 — with a debt-to-equity of 4.45x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to RUN?
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 company will produce over the next 5-10 years, shaped by Solar trends, then discounting those amounts to today's dollars. RUN's ROIC of -0.3% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect RUN stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For RUN, with a debt-to-equity ratio of 4.45x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 23.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See RUN PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value RUN with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.