Is Energy Recovery, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Energy Recovery, Inc. has moved from very attractive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 31, an EV to EBITDA of 25.21, and a PEG ratio of 1.03, which suggest that the stock is priced in line with its growth expectations.
In comparison to peers, Energy Recovery, Inc. has a P/E ratio of 31.92, which is quite similar to its own, while its EV to EBITDA ratio is lower than the industry average, indicating a competitive position. Notable peers include companies with lower P/E ratios, suggesting that Energy Recovery, Inc. may not be the most attractively priced option in the sector. Over the past year, the stock has underperformed the S&P 500, returning -6.94% compared to the index's 14.08%, which reinforces the notion of a fair valuation amidst broader market gains.