Reliance Steel Valuation

RS Stock  USD 343.43  12.82  3.60%   
At this time, the company appears to be fairly valued. Reliance Steel Aluminum holds a recent Real Value of $355.65 per share. The prevailing price of the company is $343.43. Our model determines the value of Reliance Steel Aluminum from analyzing the company fundamentals such as Shares Outstanding of 52.29 M, operating margin of 0.07 %, and Return On Equity of 0.0996 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Reliance Steel's valuation include:
Price Book
2.5498
Enterprise Value
20.1 B
Enterprise Value Ebitda
14.5208
Price Sales
1.2974
Forward PE
22.7273
Fairly Valued
Today
343.43
Please note that Reliance Steel's price fluctuation is very steady at this time. Calculation of the real value of Reliance Steel Aluminum is based on 3 months time horizon. Increasing Reliance Steel's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Reliance stock is determined by what a typical buyer is willing to pay for full or partial control of Reliance Steel Aluminum. Since Reliance Steel is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Reliance Stock. However, Reliance Steel's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  343.43 Real  355.65 Target  324.63 Hype  342.21
The intrinsic value of Reliance Steel's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Reliance Steel's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
309.09
Downside
355.65
Real Value
357.08
Upside
Estimating the potential upside or downside of Reliance Steel Aluminum helps investors to forecast how Reliance stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Reliance Steel more accurately as focusing exclusively on Reliance Steel's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
3.564.414.92
Details
Hype
Prediction
LowEstimatedHigh
340.78342.21343.64
Details
8 Analysts
Consensus
LowTarget PriceHigh
295.41324.62360.33
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Reliance Steel's intrinsic value based on its ongoing forecasts of Reliance Steel's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Reliance Steel's closest peers.

Reliance Steel Cash

384.11 Million

Reliance Revenue by Product

Reliance Steel Total Value Analysis

Reliance Steel Aluminum is at this time projected to have takeover value of 20.05 B with market capitalization of 18.06 B, debt of 1.42 B, and cash on hands of 318.1 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Reliance Steel fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
20.05 B
18.06 B
1.42 B
318.1 M

Reliance Steel Investor Information

About 83.0% of the company shares are owned by institutional investors. The book value of Reliance Steel was at this time reported as 139.46. The company has Price/Earnings To Growth (PEG) ratio of 1.2. Reliance Steel Aluminum recorded earning per share (EPS) of 13.74. The entity last dividend was issued on the 21st of November 2025. The firm had 2:1 split on the 20th of July 2006. Reliance Steel Aluminum may be sliding down financialy. It has an above-average likelihood of going through some form of financial trouble next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.06180.0765
Significantly Down
Slightly volatile
Total Cash From Operating Activities1.7 B1.6 B
Sufficiently Up
Slightly volatile
Operating Income1.4 B1.4 B
Sufficiently Up
Slightly volatile

Reliance Steel Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Reliance Steel has an asset utilization ratio of 138.05 percent. This implies that the Company is making $1.38 for each dollar of assets. An increasing asset utilization means that Reliance Steel Aluminum is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Reliance Steel Profitability Analysis

Taking into consideration Reliance Steel's profitability measurements, Reliance Steel Aluminum may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in March. Profitability indicators assess Reliance Steel's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1993-03-31
Previous Quarter
233.7 M
Current Value
189.5 M
Quarterly Volatility
114.4 M
 
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Gross Profit is likely to gain to about 4.6 B in 2026, whereas Pretax Profit Margin is likely to drop 0.06 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.210.25
Fairly Down
Slightly volatile
Net Profit Margin0.03780.0569
Way Down
Slightly volatile
Operating Profit Margin0.06180.0765
Significantly Down
Slightly volatile
Pretax Profit Margin0.05540.0742
Way Down
Slightly volatile
Return On Assets0.05870.0786
Way Down
Slightly volatile
Return On Equity0.10.11
Significantly Down
Slightly volatile
For Reliance Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reliance Steel Aluminum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reliance Steel utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reliance Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reliance Steel over time as well as its relative position and ranking within its peers.

Reliance Steel Earnings per Share Projection vs Actual

The next projected EPS of Reliance Steel is estimated to be 4.4076 with future projections ranging from a low of 3.56325 to a high of 4.925. Reliance Steel's most recent 12-month trailing earnings per share (EPS TTM) is at 13.74. Please be aware that the consensus of earnings estimates for Reliance Steel Aluminum is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
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Covid
 
Interest Hikes
Reliance Steel is projected to generate 4.4076 in earnings per share on the 31st of December 2026. Reliance Steel earnings estimates show analyst consensus about projected Reliance Steel EPS (Earning Per Share). It derives the highest and the lowest estimates based on Reliance Steel's historical volatility. Many public companies, such as Reliance Steel, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Reliance Steel Earnings Estimation Breakdown

The calculation of Reliance Steel's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Reliance Steel is estimated to be 4.4076 with the future projection ranging from a low of 3.56325 to a high of 4.925. Please be aware that this consensus of annual earnings estimates for Reliance Steel Aluminum is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
3.56
Lowest
Expected EPS
4.4076
4.92
Highest

Reliance Steel Earnings Projection Consensus

Suppose the current estimates of Reliance Steel's value are higher than the current market price of the Reliance Steel stock. In this case, investors may conclude that Reliance Steel is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Reliance Steel's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
887.89%
0.0
4.4076
13.74

Reliance Steel Ownership Allocation

Reliance Steel owns a total of 52.29 Million outstanding shares. The majority of Reliance Steel Aluminum outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Reliance Steel Aluminum to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Reliance Steel. Please pay attention to any change in the institutional holdings of Reliance Steel Aluminum as this could imply that something significant has changed or is about to change at the company. On October 22, 2025, Representative Lisa McClain of US Congress acquired under $15k worth of Reliance Steel Aluminum's common stock.

Reliance Steel Profitability Analysis

The company generated the yearly revenue of 13.84 B. Reported Net Income was 878 M with gross profit of 4.05 B.

Reliance Steel Past Distributions to stockholders

About Reliance Steel Valuation

The stock valuation mechanism determines Reliance Steel's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Reliance Steel Aluminum based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Reliance Steel. We calculate exposure to Reliance Steel's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Reliance Steel's related companies.
Last ReportedProjected for Next Year
Gross Profit4.4 B4.6 B
Pretax Profit Margin 0.07  0.06 
Operating Profit Margin 0.08  0.06 
Net Profit Margin 0.06  0.04 
Gross Profit Margin 0.25  0.21 

Reliance Steel Quarterly Retained Earnings

7.4 Billion

Reliance Steel's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Reliance Steel's value is low or high relative to the company's performance and growth projections. Determining the market value of Reliance Steel can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Reliance Steel represents a small ownership stake in the entity. As a stockholder of Reliance, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Reliance Steel Dividends Analysis For Valuation

At this time, Reliance Steel's Dividends Paid is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 1.98 in 2026, whereas Dividend Yield is likely to drop 0.01 in 2026. . At this time, Reliance Steel's Retained Earnings are comparatively stable compared to the past year. Earnings Yield is likely to gain to 0.07 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 4.3 B in 2026.
Last ReportedProjected for Next Year
Dividends Paid287.2 M301.5 M
Dividend Yield 0.02  0.01 
Dividend Payout Ratio 0.26  0.14 
Dividend Paid And Capex Coverage Ratio 1.89  1.98 
There are various types of dividends Reliance Steel can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Reliance shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Reliance Steel Aluminum directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Reliance pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Reliance Steel by the value of the dividends paid out.

Reliance Steel Growth Indicators

Investing in growth stocks can be very risky. If the company such as Reliance Steel does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding56.2 M
Quarterly Earnings Growth Y O Y-0.006
Forward Price Earnings22.7273

Reliance Steel Current Valuation Indicators

Reliance Steel's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Reliance Steel's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Reliance Steel, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Reliance Steel's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Reliance Steel's worth.

Additional Tools for Reliance Stock Analysis

When running Reliance Steel's price analysis, check to measure Reliance Steel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reliance Steel is operating at the current time. Most of Reliance Steel's value examination focuses on studying past and present price action to predict the probability of Reliance Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reliance Steel's price. Additionally, you may evaluate how the addition of Reliance Steel to your portfolios can decrease your overall portfolio volatility.