RUN
Sunrun Inc
Price:  
10.50 
USD
Volume:  
33,830,508.00
United States | Electrical Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RUN WACC - Weighted Average Cost of Capital

The WACC of Sunrun Inc (RUN) is 7.7%.

The Cost of Equity of Sunrun Inc (RUN) is 20.70%.
The Cost of Debt of Sunrun Inc (RUN) is 6.00%.

Range Selected
Cost of equity 16.10% - 25.30% 20.70%
Tax rate 0.60% - 0.80% 0.70%
Cost of debt 5.00% - 7.00% 6.00%
WACC 6.3% - 9.1% 7.7%
WACC

RUN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.66 3.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.10% 25.30%
Tax rate 0.60% 0.80%
Debt/Equity ratio 7.52 7.52
Cost of debt 5.00% 7.00%
After-tax WACC 6.3% 9.1%
Selected WACC 7.7%

RUN's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for RUN:

cost_of_equity (20.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.66) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.