A Look at Sunrun's (RUN) Valuation Following Recent Share Price Volatility
See our latest analysis for Sunrun.
Sunrun’s share price has rebounded strongly over the year, registering an impressive year-to-date gain of 81.88% and a 1-year total shareholder return of 85.51%. This momentum suggests renewed optimism about growth potential, even as price swings remain part of the story.
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With recent gains and volatility top of mind, a key question emerges: Is Sunrun undervalued after its sharp rebound, or is the market already factoring in much of its future growth prospects and potential upside?
Most Popular Narrative: 17% Undervalued
Sunrun’s latest widely followed narrative points to notable upside, with the narrative’s fair value calculated well above the most recent closing price. The narrative sets a compelling basis for an undervaluation thesis if the underlying projections hold true.
Sunrun is rapidly scaling its storage and grid services offerings, enrolling a growing portion of its customer base (currently about 35% of 200,000 batteries, aiming for 10 GWh of dispatchable energy by 2029). This enables significant recurring revenue growth and expanded margin opportunities as demand for grid support rises. The company could see a positive impact on long-term revenue and net margins as a result.
Want to know what’s driving this optimistic price target? One bold forecast underpins the valuation: future earnings growth and expanding profit margins that could flip Sunrun’s financial story on its head. Curious if Sunrun can actually deliver these big numbers and sustain momentum? Dive into the full narrative to see the projections that may surprise you.
Result: Fair Value of $22.39 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, potential headwinds remain, including the risk of policy changes or reduced tax credits. These factors could dampen demand and slow Sunrun’s expected growth.
Find out about the key risks to this Sunrun narrative.
Build Your Own Sunrun Narrative
If you see things differently or want to dig deeper into the numbers, you can shape your own perspective in just a few minutes with Do it your way.
A great starting point for your Sunrun research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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