Current Price
$12.89
PE Ratio (TTM)
5.3x
Intrinsic Value
$8.81
-46.3% margin of safety
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.
Base case
RUN base case PE valuation
A base case PE valuation for RUN estimates a fair value of about $8.81 per share, against a current price of $12.89. The model assumes -16.3% annual earnings growth, a 5x target PE multiple, and a 10% discount rate.
Intrinsic Value
$8.81
Margin of safety
-46.3%
Expected annual return
-7.3%
Base case assumptions: -16.3% annual earnings growth, 5x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
5.3x
PEG Ratio
0.02
Earnings Yield
18.79%
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 5.3x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 suggests RUN may be undervalued relative to its 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 (5.3x) 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 (5.3x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.