Energy RecoveryERII +0.34%71 PB Ratio is 2.48 as of Jun. 29, 2026, which is 48% below its 10-year median of 4.78. GuruFocus rates ERII with a GF Score™ of 71/100 and a GF Value™ of $14.78 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,981 Industrial Products companies, Energy Recovery ranks worse than 53.94% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-06-29), Energy Recovery's share price is $8.79. Energy Recovery's Book Value per Share for the quarter that ended in Mar. 2026 was $3.54. Hence, Energy Recovery's PB Ratio of today is 2.48.
Good Sign:
Energy Recovery Inc stock PB Ratio (=2.48) is close to 10-year low of 2.26.
The historical rank and industry rank for Energy Recovery's PB Ratio or its related term are showing as below:
ERII'
s PB Ratio Range Over the Past 10 Years
Min: 2.26 Med: 4.78 Max: 14.31
Current: 2.48
During the past 13 years, Energy Recovery's highest PB Ratio was 14.31. The lowest was 2.26. And the median was 4.78.
ERII's PB Ratio is ranked worse than 53.94% of 2981
companies
in the Industrial Products industry
Industry Median: 2.26
vs ERII: 2.48
During the past 12 months, Energy Recovery's average Book Value Per Share Growth Rate was -2.00% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 5.70% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 5.90% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 13.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Energy Recovery was 171.70% per year. The lowest was -10.90% per year. And the median was 8.30% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Energy Recovery PB Ratio Related Terms
Energy Recovery PB Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's PB 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.
For the Pollution & Treatment Controls subindustry, Energy Recovery's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's PB Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Energy Recovery's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Energy Recovery (ERII) has a PB Ratio of 2.48 as of Jun. 29, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Energy Recovery and its competitors. This is 48% below median its historical median of 4.78. Over the past decade, Energy Recovery's PB Ratio has ranged from 2.26 to 14.31. According to the industry distribution chart, Energy Recovery ranks #1608 out of 2981 companies in the Industrial Products industry, placing it in the top 53.9%.
Is Energy Recovery's PB Ratio too high?
Energy Recovery's current PB Ratio of 2.48 is 48% below median its 10-year median of 4.78. Over the past 10 years, this metric has ranged from a low of 2.26 to a high of 14.31. The Industrial Products industry median PB Ratio is 2.26. Energy Recovery's value of 2.48 is 9.7% above this industry median. Based on the distribution chart, Energy Recovery ranks #1608 out of 2981 companies in the Industrial Products industry, which is below 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 PB Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1608 out of 2981 companies for PB Ratio. This places Energy Recovery in the lower half of its industry. The industry median PB Ratio is 2.26. Energy Recovery's value of 2.48 is 9.7% above this benchmark. Historically, Energy Recovery's own PB Ratio has ranged from 2.26 to 14.31 over the past decade. While the company's 10-year median is 4.78 vs. the industry median of 2.26, 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 PB Ratio for an Industrial Products company?
The median PB Ratio among Industrial Products companies is 2.26, based on 2,981 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current PB Ratio of 2.48 is 9.7% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median PB Ratio is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current PB Ratio is 2.48, which is 48% below median its own 10-year median of 4.78. 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 $14.78, compared to a current price of $8.79 — trading 40.5% below its estimated fair value. The current PB Ratio is 2.48, which is 48% below median its 10-year median of 4.78 and 9.7% above the Industrial Products industry median of 2.26. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current PB Ratio is 2.48 as of Jun. 29, 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 $8.79 is trading 40.5% below its estimated GF Value™ of $14.78.
GuruFocus considers Energy Recovery to be Significantly Undervalued.
Key valuation signals for ERII:
PB Ratio: 2.48 (48% below median its 10-year median of 4.78)
GF Value™: $14.78 vs. price of $8.79 (40.5% below fair value)
Industry Position: 9.7% above the Industrial Products median (#1608 of 2981)
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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