Energy RecoveryERII -2.11%66 Cyclically Adjusted PB Ratio is 2.76 as of Jul. 07, 2026, which is 49% below its 10-year median of 5.40. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.59 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,295 Industrial Products companies, Energy Recovery ranks worse than 55.86% on this metric.
The historical rank and industry rank for Energy Recovery's Cyclically Adjusted PB Ratio or its related term are showing as below:
ERII'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 2.51 Med: 5.4 Max: 12.17
Current: 2.82
During the past years, Energy Recovery's highest Cyclically Adjusted PB Ratio was 12.17. The lowest was 2.51. And the median was 5.40.
ERII's Cyclically Adjusted PB Ratio is ranked worse than 55.86% of 2295
companies
in the Industrial Products industry
Industry Median: 2.29
vs ERII: 2.82
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Energy Recovery's adjusted book value per share data for the three months ended in Mar. 2026 was $3.538. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $3.19 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Energy Recovery (NAS:ERII) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Energy Recovery Cyclically Adjusted PB Ratio Related Terms
Energy Recovery Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Energy Recovery Cyclically Adjusted PB Ratio Chart
ERII vs ARQ, FTEK, BCHT: Cyclically Adjusted PB Ratio Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Energy Recovery Cyclically Adjusted PB Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Cyclically Adjusted PB Ratio falls into.
Energy Recovery Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Energy Recovery's Cyclically Adjusted PB Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 2.76 mean?
Energy Recovery (ERII) has a Cyclically Adjusted PB Ratio of 2.76 as of Jul. 07, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Energy Recovery and its competitors. This is 49% below median its historical median of 5.40. Over the past decade, Energy Recovery's Cyclically Adjusted PB Ratio has ranged from 2.51 to 12.17. According to the industry distribution chart, Energy Recovery ranks #1282 out of 2295 companies in the Industrial Products industry, placing it in the top 55.9%.
Is Energy Recovery's Cyclically Adjusted PB Ratio too high?
Energy Recovery's current Cyclically Adjusted PB Ratio of 2.76 is 49% below median its 10-year median of 5.40. Over the past 10 years, this metric has ranged from a low of 2.51 to a high of 12.17. The Industrial Products industry median Cyclically Adjusted PB Ratio is 2.29. Energy Recovery's value of 2.76 is 20.5% above this industry median. Based on the distribution chart, Energy Recovery ranks #1282 out of 2295 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Energy Recovery has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Cyclically Adjusted PB Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1282 out of 2295 companies for Cyclically Adjusted PB Ratio. This places Energy Recovery in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.29. Energy Recovery's value of 2.76 is 20.5% above this benchmark. Historically, Energy Recovery's own Cyclically Adjusted PB Ratio has ranged from 2.51 to 12.17 over the past decade. While the company's 10-year median is 5.40 vs. the industry median of 2.29, Energy Recovery has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for an Industrial Products company?
The median Cyclically Adjusted PB Ratio among Industrial Products companies is 2.29, based on 2,295 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Cyclically Adjusted PB Ratio of 2.76 is 20.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Cyclically Adjusted PB Ratio is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Cyclically Adjusted PB Ratio is 2.76, which is 49% below median its own 10-year median of 5.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Recovery stock overvalued right now?
Based on GuruFocus' analysis, Energy Recovery (ERII) is currently considered Significantly Undervalued. The stock's GF Value™ is $14.59, compared to a current price of $8.80 — trading 39.7% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 2.76, which is 49% below median its 10-year median of 5.40 and 20.5% above the Industrial Products industry median of 2.29. Energy Recovery's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current Cyclically Adjusted PB Ratio is 2.76 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Energy Recovery (ERII) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Recovery stock appears to be undervalued.
The current stock price of $8.80 is trading 39.7% below its estimated GF Value™ of $14.59.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Cyclically Adjusted PB Ratio: 2.76 (49% below median its 10-year median of 5.40)
GF Value™: $14.59 vs. price of $8.80 (39.7% below fair value)
Industry Position: 20.5% above the Industrial Products median (#1282 of 2295)
No single metric tells the full story. See the ERII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Recovery Inc designs and manufactures energy-saving technologies. The firm uses its proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Using its proprietary technology, it offers energy recovery devices, including pressure exchangers, pumps, and turbochargers, mainly used for seawater desalination and wastewater treatment. Additionally, the company is involved in the development of emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. The firm's reportable operating segments are: Water, which generates maximum revenue, and Emerging Technologies. Geographically, it generates maximum revenue from the Middle East, and the rest from other markets.
66GF Score
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