TGM's two-stage DCF values Reliance Steel & Aluminum Co. (RS) between $309.06 and $569.95 depending on assumptions, with a base case of $414.66. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.9%) reflects its beta.
What would today's price require?
$427.11 is justified only if free cash flow grows about +9.3% a year (fading to 2.5% long-run) at a 8.9% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.6%/yr | 9.9% | $309.06 |
| Base case | 8.6%/yr | 8.9% | $414.66 |
| Optimistic | 11.6%/yr | 7.9% | $569.95 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 12, 2026 · assumptions not provided | $295.93 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$427.11
Market-Implied Growth
+9.3%/yr
vs -1.8% 5Y actual
Model Scenario Range
$309.06 – $569.95
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for RS (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.1B · 0.05B shares · net debt $1.5B
Estimated Fair Value
$414.66
-2.9% vs $427.11
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $427.11; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.9% | $518 | $566 | $624 | $697 | $791 |
| 7.9% | $430 | $462 | $500 | $545 | $601 |
| 8.9% | $365 | $388 | $415 | $446 | $482 |
| 9.9% | $316 | $333 | $353 | $375 | $400 |
| 10.9% | $278 | $291 | $305 | $322 | $341 |
