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  "documentTitle": "Sunrun Inc. (RUN)",
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  "authorName": "Carson C. Block",
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  "notes": "Includes two tables comparing company-claimed values vs. analyst-adjusted values, with supporting text explaining the methodology for the adjustments.",
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      "text": "We Estimate Sunrun Overstates Its Income Approach FMV by 29% and Subscriber Value by 32%",
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      "text": "Net Earning Assets: 85.4%",
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      "text": "RUN has already taken on $5.5 billion of back leverage against its asset base. We believe that RUN's heavily levered capital structure wipes out almost all of the company's claimed residual Subscriber Value of $3,166 per subscriber...",
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      "kind": "paragraph",
      "text": "For the Tax Model Income Approach, we further decrease the valuation by $.40 / watt by taking out the value of the ITC and other incentives, which we believe are ineligible costs for ITC purposes...",
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      "text": "It is important to note that the Investor Models for Gross / Net Earning Assets and Subscriber Value differ slightly. Gross Earning Assets is effectively an estimate of the remaining value of existing contracts...",
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      "text": "27 Interview with Former RUN Executive A, October 2021; 28 RUN Q3 2021 Earnings Presentation, p. 6",
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      "text": "Stated Net Earning Assets, Q1 2022 ($millions) 4,454.0; Less: Panel Removal Liability (462.4); Less: Panel Degradation (252.2); Less: O&M Expense Adjustment (294.2); Less: Renegotiation & Defaults (210.2); Adjusted Net Earning Assets, Before Churn Adjustment 3,235.0",
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      "text": "Adjusted Subscriber Value, Churn Sensitization (MWC Estimate); Low (75% of Base Case Estimate) 426.0; Base Case Estimate 648.9; High (125% of Base Case Estimate) 1,002.0",
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      "kind": "table",
      "text": "($ per watt) RUN Claimed (MW Est.) MW Adjusted; PPA cash flows 2.51 1.96; Depreciation tax benefits 0.95 0.72; Income Approach FMV (Equipment Value) 3.46 2.69; State & Local Incentives 0.27 0.27; ITC 1.26 0.83; Subscriber Value (Membership A + B Transfer Value, Q4 2021) 4.99 3.79",
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      "kind": "title",
      "text": "We Adjust Down RUN's Net Earning Assets by 85.4% at the Midpoint",
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      "text": "We Estimate Sunrun Overstates Its Income Approach FMV by 29% and Subscriber Value by 32%",
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