Energy Recovery Inc (ERII) is overvalued and Veralto Corp (VLTO) is slightly overvalued.
Both trade above our estimate of their intrinsic value. VLTO is the closer of the two: -7%, against -62% for ERII.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $4.38; the price of $7.12 is 62% above that value, and 73% of that value comes from beyond year five.
Leak Score 60/100 on 9 of 12 signals
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $89.66; the price of $95.79 is 7% above that value, and 76% of that value comes from beyond year five.
Leak Score 61/100 on 6 of 12 signals
| Metric | ERII | VLTO |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $7.12 | $95.79 |
| Intrinsic value | $4.38 | $89.66 |
| Margin of safety | -62% | -7% |
| Leak Score | 60/100 (9/12) | 61/100 (6/12) |
| Market cap | $363M | $23.4B |
| Revenue growth, 5 years | 2.6% | 4.8% |
| Operating margin | 16.3% | 22.7% |
| Net margin | 12.7% | 17.4% |
| Return on equity | 8.6% | 34.4% |
| Debt to equity | 0.05 | 1.09 |
| P/E | 25.2x | 24.1x |
| Forward P/E | 44.0x | 20.0x |
| P/B | 2.1x | 7.5x |
| Dividend yield | — | 0.5% |