Current Price
$9.16
PE Ratio (TTM)
5.4x
Intrinsic Value
$10.13
+9.6% margin of safety
COMPETITIVE MOAT
↑Scale and Installation Network
Sunrun's extensive network of installers and significant operational scale provide a cost advantage and faster deployment capabilities. This allows them to capture market share efficiently.
↑Customer Financing Options
Offering diverse financing solutions like leases and PPAs lowers the upfront cost for homeowners. This makes solar adoption more accessible and creates sticky customer relationships.
↑Storage Integration Expertise
Sunrun's ability to integrate battery storage with solar installations creates a more valuable product for customers. This enhances grid reliability and offers energy independence.
INVESTMENT RISKS
↓Interest Rate Sensitivity
Sunrun's business model relies heavily on financing, making it vulnerable to rising interest rates. Higher borrowing costs can reduce profitability and slow customer adoption.
↓Supply Chain Disruptions
Reliance on global supply chains for solar panels and components exposes Sunrun to potential disruptions. Tariffs or geopolitical events can increase costs and delay projects.
↓Customer Acquisition Costs
The cost of acquiring new residential customers can be high and may increase as the market matures. This impacts the overall profitability of each installation.
Base case
RUN base case PE valuation
At a current price of $9.16, the base case PE valuation puts RUN fair value near $10.13 per share. That figure assumes 8.5% yearly earnings growth, a target PE multiple of 27.76x, and a 10% discount rate.
Intrinsic Value
$10.13
Margin of safety
+9.6%
Expected annual return
+2.0%
Base case assumptions: 8.5% annual earnings growth, 27.76x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the RUN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Sunrun Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
5.4x
PEG Ratio
0.05
Earnings Yield
3.64%
ROE (TTM)
2.5%
Revenue/Share (TTM)
$14.54
Debt/Equity
4.36x
Frequently Asked Questions
What is the PE ratio of RUN?
The trailing twelve-month PE ratio of RUN reflects how much investors pay per dollar of Sunrun Inc.'s earnings. This metric is most useful when compared to Solar peers and the company's own historical range.
Is RUN overvalued based on PE ratio?
RUN's PE of 5.4x combined with a PEG ratio of 0.05 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Solar, a DCF analysis may be more appropriate.
How do I value RUN stock using PE ratio?
To value Sunrun Inc. using PE: (1) Compare the current PE (5.4x) against the Solar median to assess relative pricing, (2) check the PEG ratio (0.05) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of RUN?
RUN's PEG ratio is 0.05, calculated by dividing the PE ratio (5.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for RUN stock valuation?
PE ratio gives a quick relative read — how RUN is priced versus Solar peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See RUN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value RUN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.