Energy Recovery Valuation
| ERII Stock | USD 13.98 0.09 0.65% |
At this time, the firm appears to be undervalued. Energy Recovery shows a prevailing Real Value of $18.1 per share. The current price of the firm is $13.98. Our model computes the value of Energy Recovery from reviewing the firm fundamentals such as Shares Outstanding of 57.33 M, current valuation of 689.57 M, and Profit Margin of 0.17 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Energy Recovery's valuation include:
Price Book 3.7341 | Enterprise Value 689.6 M | Enterprise Value Ebitda 29.2574 | Price Sales 6.3905 | Trailing PE 37.5405 |
Undervalued
Today
Please note that Energy Recovery's price fluctuation is not too volatile at this time. Calculation of the real value of Energy Recovery is based on 3 months time horizon. Increasing Energy Recovery's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Energy Recovery is useful when determining the fair value of the Energy stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Energy Recovery. Since Energy Recovery is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Energy Stock. However, Energy Recovery's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 13.98 | Real 18.1 | Target 30.0 | Hype 13.97 | Naive 13.22 |
The real value of Energy Stock, also known as its intrinsic value, is the underlying worth of Energy Recovery Company, which is reflected in its stock price. It is based on Energy Recovery's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Energy Recovery's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Energy Recovery's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Energy Recovery helps investors to forecast how Energy stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Energy Recovery more accurately as focusing exclusively on Energy Recovery's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Energy Recovery's intrinsic value based on its ongoing forecasts of Energy Recovery's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Energy Recovery's closest peers. When choosing an evaluation method for Energy Recovery, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Energy Recovery Investments |
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Energy Valuation Trend
Knowing Energy Recovery's actual value is paramount for traders to make sound investment determinations. Energy Recovery's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Energy Recovery's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Energy Recovery's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Energy Market Cap
Energy Recovery is rated # 3 in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 6.09 Billion. Energy Recovery retains roughly 796.31 Million in market capitalization claiming about 13% of equities under Industrials industry.Energy Recovery Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Energy Recovery's current stock value. Our valuation model uses many indicators to compare Energy Recovery value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Energy Recovery competition to find correlations between indicators driving Energy Recovery's intrinsic value. More Info.Energy Recovery is one of the top stocks in price to earning category among related companies. It is rated # 3 in price to book category among related companies fabricating about 0.08 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Energy Recovery is roughly 12.65 . The current Price To Book Ratio is estimated to decrease to 4.60. Comparative valuation analysis is a catch-all model that can be used if you cannot value Energy Recovery by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Energy Recovery's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Energy Recovery's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Energy Recovery's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Energy Recovery and how it compares across the competition.
About Energy Recovery Valuation
The stock valuation mechanism determines the current worth of Energy Recovery on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Energy Recovery. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Energy Recovery based exclusively on its fundamental and basic technical indicators. By analyzing Energy Recovery's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Energy Recovery's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Energy Recovery. We calculate exposure to Energy Recovery's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Energy Recovery's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 87.1 M | 91.4 M | |
| Pretax Profit Margin | 0.18 | 0.19 | |
| Operating Profit Margin | 0.15 | 0.16 | |
| Net Profit Margin | 0.17 | 0.18 | |
| Gross Profit Margin | 0.68 | 0.49 |
8 Steps to conduct Energy Recovery's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Energy Recovery's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Energy Recovery's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Energy Recovery's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Energy Recovery's revenue streams: Identify Energy Recovery's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Energy Recovery's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Energy Recovery's growth potential: Evaluate Energy Recovery's management, business model, and growth potential.
- Determine Energy Recovery's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Energy Recovery's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Energy Recovery Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Energy Recovery does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 57.7 M | |
| Quarterly Earnings Growth Y O Y | 0.414 |
Energy Recovery Current Valuation Indicators
Valuation refers to the process of determining the present value of Energy Recovery and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Energy we look at many different elements of the entity such as Energy's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Energy Recovery's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Energy Recovery's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Energy Recovery, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Energy Recovery's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Energy Recovery's worth.When determining whether Energy Recovery offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Energy Recovery's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Energy Recovery Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Energy Recovery Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Energy Recovery. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in Energy Stock please use our How to Invest in Energy Recovery guide.You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Complementary Tools for Energy Stock analysis
When running Energy Recovery's price analysis, check to measure Energy Recovery's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Energy Recovery is operating at the current time. Most of Energy Recovery's value examination focuses on studying past and present price action to predict the probability of Energy Recovery's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Energy Recovery's price. Additionally, you may evaluate how the addition of Energy Recovery to your portfolios can decrease your overall portfolio volatility.
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Is Energy Recovery's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Energy Recovery. If investors know Energy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Energy Recovery listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.414 | Earnings Share 0.37 | Revenue Per Share 2.274 | Quarterly Revenue Growth 0.352 | Return On Assets 0.0507 |
The market value of Energy Recovery is measured differently than its book value, which is the value of Energy that is recorded on the company's balance sheet. Investors also form their own opinion of Energy Recovery's value that differs from its market value or its book value, called intrinsic value, which is Energy Recovery's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Energy Recovery's market value can be influenced by many factors that don't directly affect Energy Recovery's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Energy Recovery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Energy Recovery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Energy Recovery's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.