Energy Recovery Inc (ERII) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Energy Recovery Inc stock $7.95, price $7.15, upside +11.2%, quality 74 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $6.64 – $30.61 · fair‑value band $4.91 – $11.04 · the $7.15 price screens below the $7.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the United States, North, South and Latin America, the Middle East, Northern Africa, Asia, and Europe. It operates through Water and Emerging Technologies segments.
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The company offers high and low pressure, and ultra high-pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation pumps for use in water treatment industries, including seawater and brackish desalination, and wastewater treatment.
It also provides PX G1300, which reduces energy consumption and operating costs of carbon dioxide-based refrigeration systems; and spare parts, as well as repair, field, and commissioning services.
The company sells its products under the ERI, PX, PX Pressure Exchanger, Pressure Exchanger, Ultra High-Pressure PX, PX G1300, PX PowerTrain, PX G, AT, and Aquabold brands to supermarket chains, cold storage facilities, refrigeration system installers or OEMs, and other industrial users; and aftermarket customers consisting of desalination plant owners and operators.
Energy Recovery, Inc. was incorporated in 1992 and is headquartered in San Leandro, California.
Stock analysis
Energy Recovery Inc (ERII) currently trades at $7.15, while our model-based Fair Value estimate is $7.95, implying the stock looks roughly 10% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $8.79 per share, and 11 of the 24 models we run sit above the $7.15 price.
Bear case: the Asset-Based group reads lowest at $3.07, and 13 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $4.91 (bear) to $11.04 (bull), the price of $7.15 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Energy Recovery Inc reported revenue of $135M in FY2025 versus $104M in FY2021, a compound +6.7%/yr. Reported net income was $23.0M in FY2025, compounding +12.6%/yr from FY2021.
Key figures
Market cap $368M Small · P/E ratio 102.1 · P/S ratio 3.69 · EPS (TTM) $0.0700 · Net margin 5.2% · Return on equity 3.0% · Return on assets (EBIT) 8.8% (5-year average) · Operating margin −87.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (medium confidence).
What moves the price
The share trades about 56% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 3% fair-value upside, at 11%, ERII screens cheaper than that median.
Fair Value models
Bear$4.91Fair Value $7.95Bull$11.04
Price $7.15 · Upside +11.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.0600 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors bought shares worth $266,078, most recently on Jun 15, 2026. Over the same period, 3 people sold shares worth $193,423. Buying cluster
SaleWilliam YeungChief Legal Officer3× since Jan 28, 2026: 11,584 shares, avg. $13.52$156,631Jul 28, 202610b5-1 plan
SaleRodney ClementeSVP, Water3× since Feb 5, 2026: 26,679 shares, avg. $10.30$274,902Jul 28, 202610b5-1 plan
SaleAlexander J BuehlerInterim President and CEO, Director14,900 shares at $8.71$129,779Jun 15, 2026
BuyColin R SabolDirector11,180 shares at $8.88$99,278Jun 15, 2026
BuyPamela L. TondreauDirector20,000 shares at $8.34$166,800May 13, 2026
SaleArve HanstveitDirector5× since Dec 4, 2025: 272,711 shares, avg. $10.83$3.0MApr 6, 2026
SaleNatarajan RamananChief Technology Officer272 shares at $10.57$2,875Mar 5, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−7.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Start year 2020 (pandemic). Over 10 years: +11.7% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+8.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.4%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.8% vs 36.7%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.34% → 18%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+13.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +7.5% a year for the price and +10.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Pollution & Treatment Controls · 86 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Energy Recovery Inc (ERII) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $7.95 versus a price of $7.15, about +11% upside (undervalued).
What is the fair value of ERII?
Our model-based fair value for Energy Recovery Inc is $7.95 (as of Nov 7, 2026), built from audited fundamentals. The current price: $7.15.
What is the quality score of ERII?
Energy Recovery Inc has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Energy Recovery Inc (ERII)?
Our model-based price target is the fair value of $7.95 (as of Nov 7, 2026) from 24 valuation models. Cautious scenario $4.91, optimistic scenario $11.04. It is a calculation from audited fundamentals, not an analyst target.
What is the Energy Recovery Inc stock forecast for 2026?
Our models put fair value at $7.95, about +11% upside versus a price of $7.15 (undervalued). Cautious scenario $4.91, optimistic scenario $11.04. The calculation is refreshed regularly with new filings.
What is the revenue of Energy Recovery Inc (ERII)?
Energy Recovery Inc reported trailing-twelve-month revenue of about $99.8M (latest available figure, as of Nov 7, 2026).
What growth is priced into Energy Recovery Inc (ERII)?
For today's price to be fair in a discounted-cash-flow model, Energy Recovery Inc would have to grow free cash flow by +10.1 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.9 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of ERII use?
Our models discount Energy Recovery Inc at 10.9 %: a base by market capitalisation (small), damped by beta 0.90, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Energy Recovery Inc that is +10.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Energy Recovery Inc (ERII) delivered so far?
Over the past 5 years revenue at Energy Recovery Inc grew +7.9 % a year. The price currently implies free-cash-flow growth of +10.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Energy Recovery Inc (ERII) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Energy Recovery Inc (+10.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Energy Recovery Inc (ERII)?
The free-cash-flow yield on the price is 4.74 %: that much free cash flow Energy Recovery Inc produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Energy Recovery Inc (ERII)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Energy Recovery Inc it is $7.95 per share (as of Nov 7, 2026), against a price of $7.15. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Energy Recovery Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, ERII trades below its calculated fair value: price $7.15, fair value $7.95, a gap of about +11% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ERII?
No. The price is what the market pays today ($7.15); the fair value is what the company's own numbers justify ($7.95). For Energy Recovery Inc the two are $0.8000 per share apart. That gap is exactly why we show both numbers side by side.
How much is Energy Recovery Inc worth?
The market values Energy Recovery Inc at about $368M (market capitalisation, as of Nov 7, 2026). Per share that is $7.15; our models calculate a fair value of $7.95 per share.
What do the bullish and bearish scenarios say about ERII?
Our models span a range for Energy Recovery Inc: cautious scenario $4.91, base $7.95, optimistic $11.04 per share (as of Nov 7, 2026, price $7.15). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ERII?
Energy Recovery Inc trades at a price-to-earnings ratio of 102.1 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $7.95 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2024 ex one-offs: 44.3. Other multiples: PEG 3.3, P/B 1.8, P/S 3.7, EV/EBITDA 32.6.
What is the PEG ratio of ERII?
The PEG ratio of Energy Recovery Inc is 3.33 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Energy Recovery Inc (ERII)?
Balance-sheet figures for Energy Recovery Inc (as of Nov 7, 2026): return on equity 3.0%, debt of 0.06 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is ERII from its 52-week high?
Energy Recovery Inc trades at $7.15, about 56% below its 52-week high of $16.24 and 8% above the low of $6.64 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $7.95 is for.
Which stocks are comparable to Energy Recovery Inc?
From the same area (Industrials) we also value Veralto Corporation, Zurn Elkay Water Solutions Corporation, Fujian Longking Co, Munters Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Energy Recovery Inc stock attractive at the current price?
The data as of Nov 7, 2026: price $7.15, calculated fair value $7.95 (+11%), Quality Score 74/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ERII calculated?
We run Energy Recovery Inc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $7.95 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Energy Recovery Inc currently trades 10% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Energy Recovery Inc (ERII)?
The closing price on Nov 6, 2026 was $7.15. Our model-based fair value is $7.95, about +11% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Energy Recovery Inc right now?
A fairly wide model range ($4.91 to $11.04) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Energy Recovery Inc
How large is the market capitalisation of Energy Recovery Inc (ERII)?
The market capitalisation of Energy Recovery Inc is $368M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Energy Recovery Inc (ERII)?
The price-to-sales ratio of Energy Recovery Inc is 3.69 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Energy Recovery Inc (ERII)?
Earnings per share at Energy Recovery Inc are $0.0700 (price ÷ EPS = P/E 102.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Energy Recovery Inc (ERII)?
The net margin of Energy Recovery Inc is 5.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Energy Recovery Inc (ERII)?
The return on equity (ROE) of Energy Recovery Inc is 3.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Energy Recovery Inc (ERII)?
On an EBIT basis the return on assets of Energy Recovery Inc is 8.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Energy Recovery Inc (ERII)?
The operating margin of Energy Recovery Inc is −87.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Energy Recovery Inc (ERII)?
Revenue at Energy Recovery Inc is growing −65.0% versus a year earlier (3y avg +2.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Energy Recovery Inc (ERII)?
Earnings per share at Energy Recovery Inc are growing +20.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Energy Recovery Inc (ERII) hold?
Energy Recovery Inc holds more cash than debt, $38.6M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Nov 7, 2026