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Energy RecoveryERII +0.81%66 EV-to-EBIT is 15.09 as of Jul. 16, 2026, which is 62% below its 10-year median of 39.99. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.43 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,367 Industrial Products companies, Energy Recovery ranks better than 62.32% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Energy Recovery's Enterprise Value for the quarter that ended in Mar. 2026 was $447.2 Mil.
Energy Recovery's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $24.6 Mil.
* 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 EV-to-EBIT Related Terms
Energy Recovery EV-to-EBIT Historical Data
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The historical data trend for Energy Recovery's EV-to-EBIT 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.
For the Pollution & Treatment Controls subindustry, Energy Recovery's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Energy Recovery's EV-to-EBIT falls into.
Energy Recovery's current Enterprise Value is $370.6 Mil.
Energy Recovery's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $24.6 Mil.
* 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 (ERII) has a EV-to-EBIT of 15.09 as of Jul. 16, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Energy Recovery and its competitors. This is 62% below median its historical median of 39.99. According to the industry distribution chart, Energy Recovery ranks #892 out of 2367 companies in the Industrial Products industry, placing it in the top 37.7%.
Is Energy Recovery's EV-to-EBIT too high?
Energy Recovery's current EV-to-EBIT of 15.09 is 62% below median its 10-year median of 39.99. The Industrial Products industry median EV-to-EBIT is 19.74. Energy Recovery's value of 15.09 is 23.6% below this industry median. Based on the distribution chart, Energy Recovery ranks #892 out of 2367 companies in the Industrial Products industry, which is above 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 EV-to-EBIT compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #892 out of 2367 companies for EV-to-EBIT. This puts Energy Recovery in the upper half of its industry. The industry median EV-to-EBIT is 19.74. Energy Recovery's value of 15.09 is 23.6% below this benchmark. While the company's 10-year median is 39.99 vs. the industry median of 19.74, Energy Recovery has consistently been below 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 EV-to-EBIT for an Industrial Products company?
The median EV-to-EBIT among Industrial Products companies is 19.74, based on 2,367 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current EV-to-EBIT of 15.09 is 23.6% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median EV-to-EBIT is 19.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current EV-to-EBIT is 15.09, which is 62% below median its own 10-year median of 39.99. 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 $14.43, compared to a current price of $8.69 — trading 39.8% below its estimated fair value. The current EV-to-EBIT is 15.09, which is 62% below median its 10-year median of 39.99 and 23.6% below the Industrial Products industry median of 19.74. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Energy Recovery (ERII), the current EV-to-EBIT is 15.09 as of Jul. 16, 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 $8.69 is trading 39.8% below its estimated GF Value™ of $14.43.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
EV-to-EBIT: 15.09 (62% below median its 10-year median of 39.99)
GF Value™: $14.43 vs. price of $8.69 (39.8% below fair value)
Industry Position: 23.6% below the Industrial Products median (#892 of 2367)
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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