Energy RecoveryERII -0.62%66 Cyclically Adjusted PS Ratio is 4.45 as of Jul. 05, 2026, which is 56% below its 10-year median of 10.00. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.64 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,299 Industrial Products companies, Energy Recovery ranks worse than 75.42% on this metric.
The historical rank and industry rank for Energy Recovery's Cyclically Adjusted PS Ratio or its related term are showing as below:
ERII'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.03 Med: 10 Max: 21.03
Current: 4.45
During the past years, Energy Recovery's highest Cyclically Adjusted PS Ratio was 21.03. The lowest was 4.03. And the median was 10.00.
ERII's Cyclically Adjusted PS Ratio is ranked worse than 75.42% of 2299
companies
in the Industrial Products industry
Industry Median: 1.89
vs ERII: 4.45
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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
Energy Recovery's adjusted revenue per share data for the three months ended in Mar. 2026 was $0.184. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $1.99 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 PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.
Energy Recovery Cyclically Adjusted PS Ratio Related Terms
Energy Recovery Cyclically Adjusted PS Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Cyclically Adjusted PS 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 PS Ratio Chart
ERII vs ARQ, FTEK, BCHT: Cyclically Adjusted PS Ratio Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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 PS Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Cyclically Adjusted PS Ratio falls into.
Energy Recovery Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS 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 PS Ratio.
Energy Recovery's Cyclically Adjusted PS 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 PS Ratio of 4.45 mean?
Energy Recovery (ERII) has a Cyclically Adjusted PS Ratio of 4.45 as of Jul. 05, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Energy Recovery and its competitors. This is 56% below median its historical median of 10.00. Over the past decade, Energy Recovery's Cyclically Adjusted PS Ratio has ranged from 4.03 to 21.03. According to the industry distribution chart, Energy Recovery ranks #1734 out of 2299 companies in the Industrial Products industry, placing it in the top 75.4%.
Is Energy Recovery's Cyclically Adjusted PS Ratio too high?
Energy Recovery's current Cyclically Adjusted PS Ratio of 4.45 is 56% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 4.03 to a high of 21.03. The Industrial Products industry median Cyclically Adjusted PS Ratio is 1.89. Energy Recovery's value of 4.45 is 135.4% above this industry median. Based on the distribution chart, Energy Recovery ranks #1734 out of 2299 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. 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 PS Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1734 out of 2299 companies for Cyclically Adjusted PS Ratio. This places Energy Recovery in the lower half of its industry. The industry median Cyclically Adjusted PS Ratio is 1.89. Energy Recovery's value of 4.45 is 135.4% above this benchmark. Historically, Energy Recovery's own Cyclically Adjusted PS Ratio has ranged from 4.03 to 21.03 over the past decade. While the company's 10-year median is 10.00 vs. the industry median of 1.89, 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 PS Ratio for an Industrial Products company?
The median Cyclically Adjusted PS Ratio among Industrial Products companies is 1.89, based on 2,299 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Cyclically Adjusted PS Ratio of 4.45 is 135.4% 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 PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue 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 PS Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Cyclically Adjusted PS Ratio is 4.45, which is 56% below median its own 10-year median of 10.00. 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 $14.64, compared to a current price of $8.85 — trading 39.5% below its estimated fair value. The current Cyclically Adjusted PS Ratio is 4.45, which is 56% below median its 10-year median of 10.00 and 135.4% above the Industrial Products industry median of 1.89. 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 PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current Cyclically Adjusted PS Ratio is 4.45 as of Jul. 05, 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 $8.85 is trading 39.5% below its estimated GF Value™ of $14.64.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Cyclically Adjusted PS Ratio: 4.45 (56% below median its 10-year median of 10.00)
GF Value™: $14.64 vs. price of $8.85 (39.5% below fair value)
Industry Position: 135.4% above the Industrial Products median (#1734 of 2299)
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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