What is Reliance Steel & Aluminum Co. (RS) DCF Fair Value and Intrinsic Value in 2026?

Reliance Steel & Aluminum Co. (RS) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Reliance Steel & Aluminum Co.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Reliance Steel & Aluminum Co. operates in the Basic Materials sector (Steel) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Reliance Steel & Aluminum Co.'s financial health rating and Piotroski F-Score?

Reliance Steel & Aluminum Co.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Reliance Steel & Aluminum Co. (RS) for quarterly SEC filing thesis breaks?

LocalAlpha audits Reliance Steel & Aluminum Co.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksRS

RS

Reliance, Inc.Basic Materials / SteelINTACT

Reliance, Inc. operates as a diversified metal solutions provider and metals service center company primarily in the United States and Canada. The company distributes metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and other specialty steel products; and provides metals processing services to consumer products, general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, industrial machinery, and heavy industries. It sells its products directly to original equipment manufacturers, which primarily include small machine shops and fabricators. The company was formerly known as Reliance Steel & Aluminum Co. and changed its name to Reliance, Inc. in February 2024. Reliance, Inc. was founded in 1939 and is based in Phoenix, Arizona.

Share Price

$394.21

52W: $260.31 - $433.02

DCF Fair Value

$93.93

-319.7% Premium

Thesis Hub

P/E (TTM)

22.8x

ROIC

Operating Margin

9.5%

FCF Yield

1.7%

Debt / Equity

0.27x

Piotroski Score

7/9

Altman Z-Score

4.22

Market Cap

$20.1B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($93.93)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$93.93

MOS Buy Target (-25%)

$70.45

Valuation Overlays: DCF Fair Value ($93.93) 25% MOS Buy Target ($70.45) Revised Graham ($261.81) Graham Number ($237.62)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$394.21

DCF Fair Value

$93.06

-323.6% Premium

Starting Free Cash Flow ($M)$345M

$100M$345M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,800M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$2.8B

PV of Terminal Value

$3.7B

Implied Enterprise Value

$6.5B

Implied Equity Value

$4.7B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$363	$383	$403	$424	$447	$467	$488	$510	$533	$557
Present Value (PV)	$333	$322	$311	$300	$290	$278	$267	$256	$245	$235

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-65.9% Premium

$237.63

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $17.31BVPS: $144.98

Revised Graham Formula-50.6% Premium

$261.81

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.6% Yield

$6.43 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.3BYield: 1.6%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

19.9% CAGR (Next 10 Yrs)

At the current price of $394.21, the market is assuming the business will compound Free Cash Flow at 19.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil RS with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Reliance, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 9.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Reliance, Inc. (RS) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Reliance, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Reliance, Inc. has an estimated DCF intrinsic fair value of $93.93 per share compared to its current market price of $394.21. This represents an estimated 319.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $237.62.