Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Energy RecoveryERII -0.39%70 Intrinsic Value: Projected FCF is $6.48 as of Sep. 04, 2026. GuruFocus rates ERII with a GF Score™ of 70/100 and a GF Value™ of $12.57 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,046 Industrial Products companies, Energy Recovery ranks better than 63.34% on this metric.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2026-09-04), Energy Recovery's Intrinsic Value: Projected FCF is $6.48. The stock price of Energy Recovery is $7.63. Therefore, Energy Recovery's Price-to-Intrinsic-Value-Projected-FCF of today is 1.2.
The historical rank and industry rank for Energy Recovery's Intrinsic Value: Projected FCF or its related term are showing as below:
ERII'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.17 Med: 3.07 Max: 7.79
Current: 1.18
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Energy Recovery was 7.79. The lowest was 1.17. And the median was 3.07.
ERII's Price-to-Projected-FCF is ranked better than 63.34% of 2046
companies
in the Industrial Products industry
Industry Median: 1.72
vs ERII: 1.18
Energy Recovery (NAS:ERII) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Energy Recovery's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
7.63
/
6.4812118965307
=
1.18
* 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 Intrinsic Value: Projected FCF Related Terms
Energy Recovery Intrinsic Value: Projected FCF Historical Data
* Premium members only.
The historical data trend for Energy Recovery's Intrinsic Value: Projected 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.
Energy Recovery Intrinsic Value: Projected FCF Chart
ERII vs ARQ, SCWO, FTEK: Intrinsic Value: Projected FCF Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Energy Recovery's Price-to-Projected-FCF falls into.
Energy Recovery Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of $6.48 mean?
Energy Recovery (ERII) has a Intrinsic Value: Projected FCF of $6.48 as of Sep. 04, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Energy Recovery and its competitors. According to the industry distribution chart, Energy Recovery ranks #750 out of 2046 companies in the Industrial Products industry, placing it in the top 36.7%.
Is Energy Recovery's Intrinsic Value: Projected FCF too high?
Energy Recovery's current Intrinsic Value: Projected FCF is $6.48. The Industrial Products industry median Intrinsic Value: Projected FCF is 1.72. Energy Recovery's value of $6.48 is 276.7% above this industry median. Based on the distribution chart, Energy Recovery ranks #750 out of 2046 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Energy Recovery has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Energy Recovery's Intrinsic Value: Projected FCF compare to ARQ and SCWO?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #750 out of 2046 companies for Intrinsic Value: Projected FCF. This puts Energy Recovery in the upper half of its industry. The industry median Intrinsic Value: Projected FCF is 1.72. Energy Recovery's value of $6.48 is 276.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for an Industrial Products company?
The median Intrinsic Value: Projected FCF among Industrial Products companies is 1.72, based on 2,046 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current Intrinsic Value: Projected FCF of $6.48 is 276.7% 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median Intrinsic Value: Projected FCF is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current Intrinsic Value: Projected FCF is $6.48. 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 $12.57, compared to a current price of $7.63 — trading 39.3% below its estimated fair value. The current Intrinsic Value: Projected FCF is $6.48 and 276.7% above the Industrial Products industry median of 1.72. Energy Recovery's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Energy Recovery (ERII), the current Intrinsic Value: Projected FCF is $6.48 as of Sep. 04, 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 $7.63 is trading 39.3% below its estimated GF Value™ of $12.57.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
Intrinsic Value: Projected FCF: $6.48
GF Value™: $12.57 vs. price of $7.63 (39.3% below fair value)
Industry Position: 276.7% above the Industrial Products median (#750 of 2046)
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.
70GF Score
Get the complete analysis for ERII
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ERII has been successfully added to your 
