Solar · NASDAQ
Current Price
$11.93
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Sunrun Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Sunrun 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.
Earnings Yield
16.24%
ROE (TTM)
15.5%
Based on trailing twelve-month data, RUN has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether RUN is overvalued depends on comparing its PE ratio to Solar peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Sunrun Inc. using PE: (1) Compare the current PE against the Solar median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 15.5%, 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.