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. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 31, while the EV to EBITDA ratio is 25.21, and the PEG ratio is 1.03, indicating that the stock is priced in line with its growth expectations.
In comparison to its peers, Energy Recovery, Inc. has a P/E ratio of 31.92, which is slightly higher than its own, suggesting it is on par with industry valuations. Additionally, the EV to EBITDA ratio of 25.76 for a peer highlights a similar valuation stance. Although specific return data is not available, the absence of a notable return comparison with the S&P 500 suggests that the stock's performance has not significantly outpaced the benchmark recently, reinforcing the notion of a fair valuation.