Current Price
$9.47
PE Ratio (TTM)
3.9x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Scale and Market Leadership
As America's largest solar provider, Sunrun benefits from significant scale in customer acquisition and installation. This leadership position can create a halo effect, attracting more customers and partners.
↑Residential Installation Expertise
Sunrun has developed deep operational expertise in the complex process of residential solar and battery installations. This specialized knowledge is difficult for new entrants to replicate quickly.
↑Virtual Power Plant Ecosystem
Sunrun is building a network of distributed energy resources through its virtual power plant (VPP) initiatives. This creates a unique asset that can offer grid services and potentially generate recurring revenue.
INVESTMENT RISKS
↓Interest Rate Sensitivity
Sunrun's business model relies heavily on financing, making it vulnerable to rising interest rates which increase borrowing costs and can dampen consumer demand for solar installations.
↓Competition from Utilities and Installers
Sunrun faces competition from traditional utility companies offering their own solar programs and from numerous smaller, regional solar installers who may compete on price.
↓Customer Concentration in Leases
A significant portion of Sunrun's revenue comes from long-term leases, creating exposure to customer churn or defaults if economic conditions worsen for homeowners.
Base case
RUN base case PE valuation
Base case assumptions: 8.2% annual earnings growth, 4x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
3.9x
PEG Ratio
0.02
Earnings Yield
25.58%
ROE (TTM)
18.4%
Revenue/Share (TTM)
$13.53
Debt/Equity
4.45x
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 3.9x combined with a PEG ratio of 0.02 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 (3.9x) against the Solar median to assess relative pricing, (2) check the PEG ratio (0.02) 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 0.02, calculated by dividing the PE ratio (3.9x) 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 RUN, with a strong ROE of 18.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 Technology 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.