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Energy RecoveryERII +0.23%66 EV-to-EBITDA is 12.93 as of Jul. 17, 2026, which is 59% below its 10-year median of 31.75. GuruFocus rates ERII with a GF Score™ of 66/100 and a GF Value™ of $14.42 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,473 Industrial Products companies, Energy Recovery ranks better than 57.74% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Energy Recovery's enterprise value is $372.7 Mil.
Energy Recovery's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $28.8 Mil. Therefore, Energy Recovery's EV-to-EBITDA for today is 12.93.
The historical rank and industry rank for Energy Recovery's EV-to-EBITDA or its related term are showing as below:
ERII'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 9.61 Med: 31.75 Max: 555.77
Current: 12.93
During the past 13 years, the highest EV-to-EBITDA of Energy Recovery was 555.77. The lowest was 9.61. And the median was 31.75.
ERII's EV-to-EBITDA is ranked better than 57.74% of 2473
companies
in the Industrial Products industry
Industry Median: 15.87
vs ERII: 12.93
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Energy Recovery (NAS:ERII) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Energy Recovery's PE Ratio (TTM) for today is calculated as:
Energy Recovery's share price for today is $8.73.
Energy Recovery's Earnings per Share (Diluted) 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 $0.380.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Energy Recovery's EV-to-EBITDA 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Energy Recovery's EV-to-EBITDA falls into.
Energy Recovery's current Enterprise Value is $372.7 Mil.
Energy Recovery's EBITDA 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 $28.8 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-EBITDA of 12.93 as of Jul. 17, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Energy Recovery. This is 59% below median its historical median of 31.75. Over the past decade, Energy Recovery's EV-to-EBITDA has ranged from 9.61 to 555.77. According to the industry distribution chart, Energy Recovery ranks #1045 out of 2473 companies in the Industrial Products industry, placing it in the top 42.3%.
Is Energy Recovery's EV-to-EBITDA too high?
Energy Recovery's current EV-to-EBITDA of 12.93 is 59% below median its 10-year median of 31.75. Over the past 10 years, this metric has ranged from a low of 9.61 to a high of 555.77. The Industrial Products industry median EV-to-EBITDA is 15.87. Energy Recovery's value of 12.93 is 18.5% below this industry median. Based on the distribution chart, Energy Recovery ranks #1045 out of 2473 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-EBITDA compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1045 out of 2473 companies for EV-to-EBITDA. This puts Energy Recovery in the upper half of its industry. The industry median EV-to-EBITDA is 15.87. Energy Recovery's value of 12.93 is 18.5% below this benchmark. Historically, Energy Recovery's own EV-to-EBITDA has ranged from 9.61 to 555.77 over the past decade. While the company's 10-year median is 31.75 vs. the industry median of 15.87, 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-EBITDA for an Industrial Products company?
The median EV-to-EBITDA among Industrial Products companies is 15.87, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current EV-to-EBITDA of 12.93 is 18.5% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Energy Recovery. For the Industrial Products industry, the median EV-to-EBITDA is 15.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current EV-to-EBITDA is 12.93, which is 59% below median its own 10-year median of 31.75. 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 $14.42, compared to a current price of $8.73 — trading 39.5% below its estimated fair value. The current EV-to-EBITDA is 12.93, which is 59% below median its 10-year median of 31.75 and 18.5% below the Industrial Products industry median of 15.87. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Energy Recovery (ERII), the current EV-to-EBITDA is 12.93 as of Jul. 17, 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 $8.73 is trading 39.5% below its estimated GF Value™ of $14.42.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
EV-to-EBITDA: 12.93 (59% below median its 10-year median of 31.75)
GF Value™: $14.42 vs. price of $8.73 (39.5% below fair value)
Industry Position: 18.5% below the Industrial Products median (#1045 of 2473)
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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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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