Reliance Steel & Aluminum Co. (RS) DCF Valuation
TGM's two-stage DCF values Reliance Steel & Aluminum Co. (RS) between $333.63 and $614.15 depending on assumptions, with a base case of $447.18. 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?
$385.78 is justified only if free cash flow grows about +7.0% a year (fading to 2.5% long-run) at a 8.9% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 7.3%/yr | 9.9% | $333.63 |
| Base case | 10.3%/yr | 8.9% | $447.18 |
| Optimistic | 13.3%/yr | 7.9% | $614.15 |
| Analyst DCF (FMP) | independent reference — different model | $313.87 | |
Current Price
$385.78
Market-Implied Growth
+7.0%/yr
vs +10.3% 5Y actual
Model Scenario Range
$333.63 – $614.15
model output — not a price target
RS DCF Fair Value Calculator
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
$594.10
+54.0% vs $385.78
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.3%/yr FCF growth and 10-year horizon fixed. Green = above today's $385.78; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.9% | $782 | $841 | $914 | $1006 | $1125 |
| 7.9% | $640 | $679 | $724 | $779 | $846 |
| 8.9% | $538 | $564 | $594 | $629 | $671 |
| 9.9% | $460 | $479 | $500 | $524 | $552 |
| 10.9% | $400 | $414 | $429 | $446 | $465 |
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co. (RS) operates as a premier diversified metal solutions provider and a leading metal service center, serving clients across the United States, Canada, and globally. The company provides an extensive inventory of approximately 100,000 metal products, including alloys, aluminum, brass, copper, carbon steel, stainless steel, titanium, and various specialty steels. Beyond distribution, it offers comprehensive metal processing services to diverse sectors such as general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries. Additionally, RS supplies non-ferrous metals and tubular building products, while also manufacturing bespoke extruded metals, fabricated components, and welded parts. As of December 31, 2021, its network comprised about 315 facilities spread across 40 U.S. states and 13 other countries. The company directly sells its offerings to original equipment manufacturers, largely catering to small machine shops and fabricators. Founded in 1939, Reliance Steel & Aluminum Co. is headquartered in Los Angeles, California.
- Sector
- Basic Materials
- Industry
- Steel
- CEO
- Karla R. Lewis