Sunrun Inc.

Valuation Analysis

About the Company

Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. The company sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. It offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. 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. It also operates distributed electricity power plants. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

Sunrun Inc. Stock at a Glance

Sunrun Inc. (RUN) is currently trading at $12.89 with a market capitalization of $3.1B. The trailing P/E ratio stands at 6.05x, with a forward P/E of 15.9x. The 52-week range spans from $5.38 to $22.44; the current price is 42.6% below the yearly high. Year-over-year revenue growth stands at +43.2%. The net profit margin stands at 17.88%.

💰 Dividend

Sunrun Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

19 analysts rate Sunrun Inc. (RUN) on consensus: Buy. The average price target is $19.26, implying +49.44% from the current price. Analyst price targets range from $13.00 to $30.00.

Sunrun Inc.: The Investment Case in Detail

Sunrun Inc. (RUN) operates in the Technology — specifically Solar — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 43.2% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. Wall Street consensus sits at Buy with an average price target implying roughly 49.44% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

The debt-to-equity ratio of 300.3% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. With a beta near 2.3, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves. Short interest sits at 30.06% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

At a PEG of 3.07, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 27.45x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The analyst consensus price target implies 49.44% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to above-average price swings, elevated short interest (30.06%), higher leverage relative to equity.

Trading Data

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