Energy RecoveryERII +0.34%71 PE Ratio (TTM) is 23.13 as of Jun. 28, 2026, which is 45% below its 10-year median of 42.08. 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 2,238 Industrial Products companies, Energy Recovery ranks better than 58.98% on this metric.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-28), Energy Recovery's share price is
$8.79.
Energy Recovery's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was $0.38. Therefore, Energy Recovery's PE Ratio (TTM) for today is 23.13.
Good Sign:
Energy Recovery Inc stock PE Ratio (=23.13) is close to 5-year low of 21.08.
The historical rank and industry rank for Energy Recovery's PE Ratio (TTM) or its related term are showing as below:
ERII'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 10.88 Med: 42.08 Max: 166.28
Current: 23.13
During the past 13 years, the highest PE Ratio (TTM) of Energy Recovery was 166.28. The lowest was 10.88. And the median was 42.08.
ERII's PE Ratio (TTM) is ranked better than 58.98% of 2238
companies
in the Industrial Products industry
Industry Median: 28.645
vs ERII: 23.13
During the past 12 months, Energy Recovery's average EPS without NRIGrowth Rate was 3.60% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 0.40% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 2.40% per year.
During the past 13 years, Energy Recovery's highest 3-Year average EPS without NRI Growth Rate was 108.00% per year. The lowest was -15.70% per year. And the median was 15.20% per year.
Energy Recovery's EPS (Basic) for the
three
months ended in Mar. 2026 was $-0.23.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2026 was $0.39.
Energy Recovery (NAS:ERII) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
Energy Recovery PE Ratio (TTM) Related Terms
Energy Recovery PE Ratio (TTM) Historical Data
* Premium members only.
The historical data trend for Energy Recovery's PE Ratio (TTM) 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.
ERII vs ARQ, FTEK, BCHT: PE Ratio (TTM) Comparison
For the Pollution & Treatment Controls subindustry, Energy Recovery's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Energy Recovery's PE Ratio (TTM) falls into.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Energy Recovery's Share Price of today is $8.79.
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 $0.38.
* 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:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Energy Recovery (ERII) has a PE Ratio (TTM) of 23.13 as of Jun. 28, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Energy Recovery and its competitors. This is 45% below median its historical median of 42.08. Over the past decade, Energy Recovery's PE Ratio (TTM) has ranged from 10.88 to 166.28. According to the industry distribution chart, Energy Recovery ranks #918 out of 2238 companies in the Industrial Products industry, placing it in the top 41%.
Is Energy Recovery's PE Ratio (TTM) too high?
Energy Recovery's current PE Ratio (TTM) of 23.13 is 45% below median its 10-year median of 42.08. Over the past 10 years, this metric has ranged from a low of 10.88 to a high of 166.28. The Industrial Products industry median PE Ratio (TTM) is 28.65. Energy Recovery's value of 23.13 is 19.3% below this industry median. Based on the distribution chart, Energy Recovery ranks #918 out of 2238 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 PE Ratio (TTM) compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #918 out of 2238 companies for PE Ratio (TTM). This puts Energy Recovery in the upper half of its industry. The industry median PE Ratio (TTM) is 28.65. Energy Recovery's value of 23.13 is 19.3% below this benchmark. Historically, Energy Recovery's own PE Ratio (TTM) has ranged from 10.88 to 166.28 over the past decade. While the company's 10-year median is 42.08 vs. the industry median of 28.65, 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 PE Ratio (TTM) for an Industrial Products company?
The median PE Ratio (TTM) among Industrial Products companies is 28.65, based on 2,238 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current PE Ratio (TTM) of 23.13 is 19.3% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median PE Ratio (TTM) is 28.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current PE Ratio (TTM) is 23.13, which is 45% below median its own 10-year median of 42.08. 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 PE Ratio (TTM) is 23.13, which is 45% below median its 10-year median of 42.08 and 19.3% below the Industrial Products industry median of 28.65. 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 PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Energy Recovery (ERII), the current PE Ratio (TTM) is 23.13 as of Jun. 28, 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:
PE Ratio (TTM): 23.13 (45% below median its 10-year median of 42.08)
GF Value™: $14.78 vs. price of $8.79 (40.5% below fair value)
Industry Position: 19.3% below the Industrial Products median (#918 of 2238)
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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