ERII Relative Valuation
ERII's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ERII is overvalued; if below, it's undervalued.
Historical Valuation
Energy Recovery Inc (ERII) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.27 is considered Undervalued compared with the five-year average of 46.84. The fair price of Energy Recovery Inc (ERII) is between 20.85 to 53.66 according to relative valuation methord. Compared to the current price of 14.68 USD , Energy Recovery Inc is Undervalued By 29.59%.
Relative Value
Fair Zone
20.85-53.66
Current Price：14.68
29.59%
Undervalued
17.27
PE
1Y
3Y
5Y
Trailing
Forward
14.27
EV/EBITDA
Energy Recovery Inc. (ERII) has a current EV/EBITDA of 14.27. The 5-year average EV/EBITDA is 32.54. The thresholds are as follows: Strongly Undervalued below 8.35, Undervalued between 8.35 and 20.45, Fairly Valued between 44.64 and 20.45, Overvalued between 44.64 and 56.73, and Strongly Overvalued above 56.73. The current Forward EV/EBITDA of 14.27 falls within the Undervalued range.
17.36
EV/EBIT
Energy Recovery Inc. (ERII) has a current EV/EBIT of 17.36. The 5-year average EV/EBIT is 43.33. The thresholds are as follows: Strongly Undervalued below 3.26, Undervalued between 3.26 and 23.29, Fairly Valued between 63.37 and 23.29, Overvalued between 63.37 and 83.40, and Strongly Overvalued above 83.40. The current Forward EV/EBIT of 17.36 falls within the Undervalued range.
4.65
PS
Energy Recovery Inc. (ERII) has a current PS of 4.65. The 5-year average PS is 7.62. The thresholds are as follows: Strongly Undervalued below 3.33, Undervalued between 3.33 and 5.48, Fairly Valued between 9.77 and 5.48, Overvalued between 9.77 and 11.92, and Strongly Overvalued above 11.92. The current Forward PS of 4.65 falls within the Undervalued range.
46.69
P/OCF
Energy Recovery Inc. (ERII) has a current P/OCF of 46.69. The 5-year average P/OCF is 33.13. The thresholds are as follows: Strongly Undervalued below -29.23, Undervalued between -29.23 and 1.95, Fairly Valued between 64.31 and 1.95, Overvalued between 64.31 and 95.48, and Strongly Overvalued above 95.48. The current Forward P/OCF of 46.69 falls within the Historic Trend Line -Fairly Valued range.
72.38
P/FCF
Energy Recovery Inc. (ERII) has a current P/FCF of 72.38. The 5-year average P/FCF is 96.04. The thresholds are as follows: Strongly Undervalued below -279.60, Undervalued between -279.60 and -91.78, Fairly Valued between 283.85 and -91.78, Overvalued between 283.85 and 471.67, and Strongly Overvalued above 471.67. The current Forward P/FCF of 72.38 falls within the Historic Trend Line -Fairly Valued range.
Energy Recovery Inc (ERII) has a current Price-to-Book (P/B) ratio of 4.30. Compared to its 3-year average P/B ratio of 5.11 , the current P/B ratio is approximately -15.76% higher. Relative to its 5-year average P/B ratio of 5.62, the current P/B ratio is about -23.48% higher. Energy Recovery Inc (ERII) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.15%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.65% , the current FCF yield is about -100.00% lower.
4.30
P/B
Median3y
5.11
Median5y
5.62
2.52
FCF Yield
Median3y
2.15
Median5y
1.65
Competitors Valuation Multiple
The average P/S ratio for ERII's competitors is 0.00, providing a benchmark for relative valuation. Energy Recovery Inc Corp (ERII) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -17.06%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ERII decreased by 0.14% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.44 to 41.16.
The secondary factor is the Revenue Growth, contributed -17.06%to the performance.
Overall, the performance of ERII in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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