Published on 5 Nov 2023 on Simply Wall St. via Yahoo Finance
Estimating The Intrinsic Value Of Energy Recovery, Inc. (NASDAQ:ERII)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Energy Recovery fair value estimate is US$18.14Energy Recovery's US$18.08 share price indicates it is trading at similar levels as its fair value estimateOur fair value estimate is 24% lower than Energy Recovery's analyst price target of US$24.00
How far off is Energy Recovery, Inc. (NASDAQ:ERII) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex.