Energy RecoveryERII -0.23%71 EV-to-FCF is 13.75 as of Jun. 25, 2026, which is 66% below its 10-year median of 40.47. GuruFocus rates ERII with a GF Score™ of 71/100 and a GF Value™ of $14.80 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,735 Industrial Products companies, Energy Recovery ranks better than 70.84% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Energy Recovery's Enterprise Value is $373.7 Mil.
Energy Recovery's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $27.2 Mil. Therefore, Energy Recovery's EV-to-FCF for today is 13.75.
The historical rank and industry rank for Energy Recovery's EV-to-FCF or its related term are showing as below:
ERII'
s EV-to-FCF Range Over the Past 10 Years
Min: -344.45 Med: 40.47 Max: 663.33
Current: 13.75
During the past 13 years, the highest EV-to-FCF of Energy Recovery was 663.33. The lowest was -344.45. And the median was 40.47.
ERII's EV-to-FCF is ranked better than 70.84% of 1735
companies
in the Industrial Products industry
Industry Median: 26.71
vs ERII: 13.75
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $8.75.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Energy Recovery EV-to-FCF Related Terms
Energy Recovery EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Energy Recovery's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Energy Recovery's EV-to-FCF falls into.
Energy Recovery's current Enterprise Value is $373.7 Mil.
Energy Recovery's Free Cash Flow 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 $27.2 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-FCF of 13.75 as of Jun. 25, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Energy Recovery and its competitors. This is 66% below median its historical median of 40.47. According to the industry distribution chart, Energy Recovery ranks #506 out of 1735 companies in the Industrial Products industry, placing it in the top 29.2%.
Is Energy Recovery's EV-to-FCF too high?
Energy Recovery's current EV-to-FCF of 13.75 is 66% below median its 10-year median of 40.47. The Industrial Products industry median EV-to-FCF is 26.71. Energy Recovery's value of 13.75 is 48.5% below this industry median. Based on the distribution chart, Energy Recovery ranks #506 out of 1735 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Energy Recovery has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's EV-to-FCF compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #506 out of 1735 companies for EV-to-FCF. This puts Energy Recovery in the upper half of its industry. The industry median EV-to-FCF is 26.71. Energy Recovery's value of 13.75 is 48.5% below this benchmark. While the company's 10-year median is 40.47 vs. the industry median of 26.71, 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-FCF for an Industrial Products company?
The median EV-to-FCF among Industrial Products companies is 26.71, based on 1,735 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current EV-to-FCF of 13.75 is 48.5% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median EV-to-FCF is 26.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current EV-to-FCF is 13.75, which is 66% below median its own 10-year median of 40.47. 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 $14.80, compared to a current price of $8.75 — trading 40.9% below its estimated fair value. The current EV-to-FCF is 13.75, which is 66% below median its 10-year median of 40.47 and 48.5% below the Industrial Products industry median of 26.71. Energy Recovery's overall GF Score™ is 71/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Energy Recovery (ERII), the current EV-to-FCF is 13.75 as of Jun. 25, 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 $8.75 is trading 40.9% below its estimated GF Value™ of $14.80.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
EV-to-FCF: 13.75 (66% below median its 10-year median of 40.47)
GF Value™: $14.80 vs. price of $8.75 (40.9% below fair value)
Industry Position: 48.5% below the Industrial Products median (#506 of 1735)
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.
71GF Score
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