Energy RecoveryERII +0.34%71 PS Ratio is 3.48 as of Jun. 28, 2026, which is 57% below its 10-year median of 8.13. 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 3,028 Industrial Products companies, Energy Recovery ranks worse than 65.75% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Energy Recovery's share price is $8.79.
Energy Recovery's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was $2.53. Hence, Energy Recovery's PS Ratio for today is 3.48.
Good Sign:
Energy Recovery Inc stock PS Ratio (=3.48) is close to 10-year low of 3.17.
The historical rank and industry rank for Energy Recovery's PS Ratio or its related term are showing as below:
ERII'
s PS Ratio Range Over the Past 10 Years
Min: 3.17 Med: 8.13 Max: 17.56
Current: 3.48
During the past 13 years, Energy Recovery's highest PS Ratio was 17.56. The lowest was 3.17. And the median was 8.13.
ERII's PS Ratio is ranked worse than 65.75% of 3028
companies
in the Industrial Products industry
Industry Median: 2.095
vs ERII: 3.48
Energy Recovery Inc revenue growth has slowed down over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Energy Recovery was 4.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 4.60% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 9.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 13.10% per year.
During the past 13 years, Energy Recovery's highest 3-Year average Revenue per Share Growth Rate was 89.30% per year. The lowest was -21.50% per year. And the median was 11.65% per year.
Back to Basics: PS Ratio
Energy Recovery (NAS:ERII) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Energy Recovery PS Ratio Related Terms
Energy Recovery PS Ratio Historical Data
* Premium members only.
The historical data trend for Energy Recovery's PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energy Recovery's PS Ratio distribution charts can be found below:
* The bar in red indicates where Energy Recovery's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Energy Recovery's Share Price of today is $8.79. Energy Recovery's Revenue per Share 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 $2.53.
* 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:
Energy Recovery (ERII) has a PS Ratio of 3.48 as of Jun. 28, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Energy Recovery and its competitors. This is 57% below median its historical median of 8.13. Over the past decade, Energy Recovery's PS Ratio has ranged from 3.17 to 17.56. According to the industry distribution chart, Energy Recovery ranks #1991 out of 3028 companies in the Industrial Products industry, placing it in the top 65.8%.
Is Energy Recovery's PS Ratio too high?
Energy Recovery's current PS Ratio of 3.48 is 57% below median its 10-year median of 8.13. Over the past 10 years, this metric has ranged from a low of 3.17 to a high of 17.56. The Industrial Products industry median PS Ratio is 2.10. Energy Recovery's value of 3.48 is 66.1% above this industry median. Based on the distribution chart, Energy Recovery ranks #1991 out of 3028 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 PS Ratio compare to ARQ and FTEK?
According to the Industrial Products industry distribution chart, Energy Recovery ranks #1991 out of 3028 companies for PS Ratio. This places Energy Recovery in the lower half of its industry. The industry median PS Ratio is 2.10. Energy Recovery's value of 3.48 is 66.1% above this benchmark. Historically, Energy Recovery's own PS Ratio has ranged from 3.17 to 17.56 over the past decade. While the company's 10-year median is 8.13 vs. the industry median of 2.10, 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 PS Ratio for an Industrial Products company?
The median PS Ratio among Industrial Products companies is 2.10, based on 3,028 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Recovery's current PS Ratio of 3.48 is 66.1% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Energy Recovery and its competitors. For the Industrial Products industry, the median PS Ratio is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current PS Ratio is 3.48, which is 57% below median its own 10-year median of 8.13. 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 PS Ratio is 3.48, which is 57% below median its 10-year median of 8.13 and 66.1% above the Industrial Products industry median of 2.10. 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 PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Energy Recovery (ERII), the current PS Ratio is 3.48 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:
PS Ratio: 3.48 (57% below median its 10-year median of 8.13)
GF Value™: $14.78 vs. price of $8.79 (40.5% below fair value)
Industry Position: 66.1% above the Industrial Products median (#1991 of 3028)
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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