Current Price
$7.40
PE Ratio (TTM)
4.3x
Intrinsic Value
$6.61
-11.9% 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 a larger share of the growing residential solar market.
↑Brand Recognition and Customer Trust
As a leading residential solar provider, Sunrun has built strong brand recognition and customer trust. This reputation can lead to higher conversion rates and customer loyalty in a competitive market.
↑Partnerships and Financing Options
Sunrun's ability to offer diverse financing options and secure strategic partnerships with manufacturers and installers creates a more attractive value proposition for homeowners. This reduces upfront costs and barriers to adoption.
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 make solar less affordable for consumers.
↓Supply Chain Disruptions
Reliance on global supply chains for solar panels and other components exposes Sunrun to potential disruptions. Shortages or price increases can impact project timelines and costs.
↓Technological Obsolescence
Rapid advancements in solar technology and energy storage could make Sunrun's current offerings less competitive. Continuous investment in R&D and adoption of new technologies is crucial.
Base case
RUN base case PE valuation
At a current price of $7.4, the base case PE valuation puts RUN fair value near $6.61 per share. That figure assumes 2.7% yearly earnings growth, a target PE multiple of 22.42x, and a 10% discount rate.
Intrinsic Value
$6.61
Margin of safety
-11.9%
Expected annual return
-2.2%
Base case assumptions: 2.7% annual earnings growth, 22.42x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.
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)
4.3x
PEG Ratio
0.04
Earnings Yield
4.50%
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 4.3x combined with a PEG ratio of 0.04 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 (4.3x) against the Solar median to assess relative pricing, (2) check the PEG ratio (0.04) 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 0.04, calculated by dividing the PE ratio (4.3x) 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 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.