Intrinsic value of Reliance Steel&Aluminum - RS

Previous Close

$81.78

  Intrinsic Value

$76.21

stock screener

  Rating & Target

hold

-7%

Previous close

$81.78

 
Intrinsic value

$76.21

 
Up/down potential

-7%

 
Rating

hold

We calculate the intrinsic value of RS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 5.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  20.80
  19.22
  17.80
  16.52
  15.37
  14.33
  13.40
  12.56
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
Revenue, $m
  11,743
  14,000
  16,492
  19,216
  22,169
  25,345
  28,741
  32,350
  36,167
  40,190
  44,413
  48,836
  53,457
  58,277
  63,297
  68,521
  73,953
  79,600
  85,467
  91,565
  97,902
  104,490
  111,340
  118,466
  125,882
  133,604
  141,649
  150,032
  158,775
  167,895
Variable operating expenses, $m
  10,143
  12,036
  14,125
  16,410
  18,886
  21,550
  24,398
  27,424
  30,626
  33,999
  37,245
  40,954
  44,829
  48,871
  53,081
  57,462
  62,018
  66,753
  71,673
  76,787
  82,101
  87,626
  93,370
  99,346
  105,566
  112,041
  118,787
  125,818
  133,149
  140,798
Fixed operating expenses, $m
  634
  648
  662
  676
  691
  706
  722
  738
  754
  771
  788
  805
  823
  841
  859
  878
  898
  917
  937
  958
  979
  1,001
  1,023
  1,045
  1,068
  1,092
  1,116
  1,140
  1,165
  1,191
Total operating expenses, $m
  10,777
  12,684
  14,787
  17,086
  19,577
  22,256
  25,120
  28,162
  31,380
  34,770
  38,033
  41,759
  45,652
  49,712
  53,940
  58,340
  62,916
  67,670
  72,610
  77,745
  83,080
  88,627
  94,393
  100,391
  106,634
  113,133
  119,903
  126,958
  134,314
  141,989
Operating income, $m
  966
  1,316
  1,704
  2,129
  2,591
  3,089
  3,621
  4,188
  4,788
  5,420
  6,380
  7,077
  7,805
  8,565
  9,357
  10,181
  11,038
  11,930
  12,857
  13,820
  14,822
  15,863
  16,947
  18,075
  19,249
  20,471
  21,746
  23,074
  24,460
  25,906
EBITDA, $m
  1,441
  1,825
  2,251
  2,718
  3,224
  3,770
  4,354
  4,976
  5,634
  6,328
  7,057
  7,821
  8,619
  9,453
  10,321
  11,225
  12,165
  13,142
  14,159
  15,215
  16,313
  17,455
  18,643
  19,880
  21,167
  22,507
  23,904
  25,360
  26,879
  28,464
Interest expense (income), $m
  81
  103
  137
  176
  219
  265
  316
  371
  429
  491
  556
  625
  697
  773
  852
  935
  1,021
  1,111
  1,204
  1,300
  1,401
  1,505
  1,614
  1,727
  1,844
  1,967
  2,094
  2,226
  2,364
  2,508
  2,657
Earnings before tax, $m
  863
  1,179
  1,528
  1,911
  2,326
  2,773
  3,251
  3,759
  4,297
  4,864
  5,755
  6,380
  7,032
  7,712
  8,422
  9,160
  9,928
  10,726
  11,556
  12,419
  13,316
  14,249
  15,220
  16,230
  17,282
  18,378
  19,520
  20,710
  21,953
  23,249
Tax expense, $m
  233
  318
  413
  516
  628
  749
  878
  1,015
  1,160
  1,313
  1,554
  1,722
  1,899
  2,082
  2,274
  2,473
  2,680
  2,896
  3,120
  3,353
  3,595
  3,847
  4,109
  4,382
  4,666
  4,962
  5,270
  5,592
  5,927
  6,277
Net income, $m
  630
  861
  1,116
  1,395
  1,698
  2,024
  2,373
  2,744
  3,137
  3,551
  4,201
  4,657
  5,133
  5,630
  6,148
  6,687
  7,247
  7,830
  8,436
  9,066
  9,721
  10,402
  11,111
  11,848
  12,616
  13,416
  14,249
  15,119
  16,025
  16,972

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,364
  11,164
  13,151
  15,324
  17,678
  20,212
  22,919
  25,797
  28,842
  32,049
  35,417
  38,944
  42,629
  46,473
  50,476
  54,642
  58,974
  63,477
  68,156
  73,018
  78,072
  83,325
  88,788
  94,471
  100,385
  106,543
  112,957
  119,643
  126,615
  133,888
Adjusted assets (=assets-cash), $m
  9,364
  11,164
  13,151
  15,324
  17,678
  20,212
  22,919
  25,797
  28,842
  32,049
  35,417
  38,944
  42,629
  46,473
  50,476
  54,642
  58,974
  63,477
  68,156
  73,018
  78,072
  83,325
  88,788
  94,471
  100,385
  106,543
  112,957
  119,643
  126,615
  133,888
Revenue / Adjusted assets
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
Average production assets, $m
  3,793
  4,522
  5,327
  6,207
  7,160
  8,187
  9,283
  10,449
  11,682
  12,981
  14,345
  15,774
  17,267
  18,823
  20,445
  22,132
  23,887
  25,711
  27,606
  29,575
  31,622
  33,750
  35,963
  38,265
  40,660
  43,154
  45,752
  48,460
  51,284
  54,230
Working capital, $m
  2,760
  3,290
  3,876
  4,516
  5,210
  5,956
  6,754
  7,602
  8,499
  9,445
  10,437
  11,476
  12,562
  13,695
  14,875
  16,102
  17,379
  18,706
  20,085
  21,518
  23,007
  24,555
  26,165
  27,840
  29,582
  31,397
  33,287
  35,258
  37,312
  39,455
Total debt, $m
  2,545
  3,261
  4,052
  4,916
  5,853
  6,862
  7,939
  9,085
  10,296
  11,573
  12,914
  14,317
  15,784
  17,314
  18,907
  20,565
  22,289
  24,081
  25,944
  27,879
  29,890
  31,981
  34,155
  36,417
  38,771
  41,221
  43,775
  46,435
  49,210
  52,105
Total liabilities, $m
  3,727
  4,443
  5,234
  6,099
  7,036
  8,044
  9,122
  10,267
  11,479
  12,756
  14,096
  15,500
  16,966
  18,496
  20,090
  21,748
  23,472
  25,264
  27,126
  29,061
  31,073
  33,163
  35,338
  37,599
  39,953
  42,404
  44,957
  47,618
  50,393
  53,287
Total equity, $m
  5,637
  6,721
  7,917
  9,225
  10,642
  12,167
  13,797
  15,530
  17,363
  19,294
  21,321
  23,444
  25,663
  27,977
  30,387
  32,895
  35,502
  38,213
  41,030
  43,957
  46,999
  50,162
  53,450
  56,871
  60,432
  64,139
  68,000
  72,025
  76,222
  80,600
Total liabilities and equity, $m
  9,364
  11,164
  13,151
  15,324
  17,678
  20,211
  22,919
  25,797
  28,842
  32,050
  35,417
  38,944
  42,629
  46,473
  50,477
  54,643
  58,974
  63,477
  68,156
  73,018
  78,072
  83,325
  88,788
  94,470
  100,385
  106,543
  112,957
  119,643
  126,615
  133,887
Debt-to-equity ratio
  0.450
  0.490
  0.510
  0.530
  0.550
  0.560
  0.580
  0.580
  0.590
  0.600
  0.610
  0.610
  0.620
  0.620
  0.620
  0.630
  0.630
  0.630
  0.630
  0.630
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.650
  0.650
Adjusted equity ratio
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602
  0.602

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  630
  861
  1,116
  1,395
  1,698
  2,024
  2,373
  2,744
  3,137
  3,551
  4,201
  4,657
  5,133
  5,630
  6,148
  6,687
  7,247
  7,830
  8,436
  9,066
  9,721
  10,402
  11,111
  11,848
  12,616
  13,416
  14,249
  15,119
  16,025
  16,972
Depreciation, amort., depletion, $m
  474
  509
  547
  588
  633
  682
  733
  788
  847
  908
  677
  744
  814
  888
  964
  1,044
  1,127
  1,213
  1,302
  1,395
  1,492
  1,592
  1,696
  1,805
  1,918
  2,036
  2,158
  2,286
  2,419
  2,558
Funds from operations, $m
  1,105
  1,369
  1,662
  1,983
  2,331
  2,706
  3,106
  3,532
  3,983
  4,459
  4,878
  5,401
  5,948
  6,518
  7,112
  7,731
  8,374
  9,043
  9,738
  10,461
  11,213
  11,994
  12,807
  13,653
  14,534
  15,451
  16,407
  17,404
  18,444
  19,530
Change in working capital, $m
  475
  530
  586
  640
  694
  747
  798
  848
  897
  945
  993
  1,039
  1,086
  1,133
  1,180
  1,228
  1,277
  1,327
  1,379
  1,433
  1,489
  1,548
  1,610
  1,675
  1,743
  1,815
  1,890
  1,970
  2,054
  2,143
Cash from operations, $m
  630
  839
  1,077
  1,343
  1,637
  1,959
  2,308
  2,684
  3,086
  3,513
  3,886
  4,362
  4,862
  5,385
  5,932
  6,503
  7,097
  7,716
  8,359
  9,028
  9,723
  10,446
  11,197
  11,978
  12,791
  13,637
  14,517
  15,434
  16,390
  17,387
Maintenance CAPEX, $m
  -148
  -179
  -213
  -251
  -293
  -338
  -386
  -438
  -493
  -551
  -612
  -677
  -744
  -814
  -888
  -964
  -1,044
  -1,127
  -1,213
  -1,302
  -1,395
  -1,492
  -1,592
  -1,696
  -1,805
  -1,918
  -2,036
  -2,158
  -2,286
  -2,419
New CAPEX, $m
  -650
  -729
  -805
  -880
  -954
  -1,026
  -1,097
  -1,166
  -1,233
  -1,299
  -1,364
  -1,429
  -1,493
  -1,557
  -1,622
  -1,687
  -1,755
  -1,824
  -1,895
  -1,970
  -2,047
  -2,128
  -2,213
  -2,302
  -2,395
  -2,494
  -2,598
  -2,708
  -2,824
  -2,946
Cash from investing activities, $m
  -798
  -908
  -1,018
  -1,131
  -1,247
  -1,364
  -1,483
  -1,604
  -1,726
  -1,850
  -1,976
  -2,106
  -2,237
  -2,371
  -2,510
  -2,651
  -2,799
  -2,951
  -3,108
  -3,272
  -3,442
  -3,620
  -3,805
  -3,998
  -4,200
  -4,412
  -4,634
  -4,866
  -5,110
  -5,365
Free cash flow, $m
  -169
  -69
  59
  212
  391
  595
  825
  1,081
  1,360
  1,663
  1,909
  2,257
  2,625
  3,014
  3,423
  3,851
  4,299
  4,765
  5,251
  5,756
  6,281
  6,826
  7,393
  7,980
  8,591
  9,225
  9,883
  10,568
  11,280
  12,022
Issuance/(repayment) of debt, $m
  643
  716
  791
  865
  937
  1,008
  1,078
  1,145
  1,212
  1,277
  1,341
  1,404
  1,467
  1,530
  1,593
  1,658
  1,724
  1,792
  1,862
  1,935
  2,011
  2,091
  2,174
  2,262
  2,354
  2,451
  2,553
  2,661
  2,775
  2,895
Issuance/(repurchase) of shares, $m
  340
  223
  81
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  983
  939
  872
  865
  937
  1,008
  1,078
  1,145
  1,212
  1,277
  1,341
  1,404
  1,467
  1,530
  1,593
  1,658
  1,724
  1,792
  1,862
  1,935
  2,011
  2,091
  2,174
  2,262
  2,354
  2,451
  2,553
  2,661
  2,775
  2,895
Total cash flow (excl. dividends), $m
  814
  870
  930
  1,076
  1,328
  1,603
  1,903
  2,226
  2,572
  2,940
  3,250
  3,660
  4,092
  4,544
  5,016
  5,509
  6,023
  6,557
  7,114
  7,692
  8,293
  8,917
  9,567
  10,242
  10,944
  11,675
  12,436
  13,229
  14,055
  14,916
Retained Cash Flow (-), $m
  -970
  -1,084
  -1,196
  -1,308
  -1,418
  -1,525
  -1,630
  -1,733
  -1,833
  -1,931
  -2,028
  -2,123
  -2,218
  -2,314
  -2,410
  -2,508
  -2,608
  -2,711
  -2,817
  -2,927
  -3,042
  -3,162
  -3,289
  -3,421
  -3,560
  -3,707
  -3,862
  -4,025
  -4,197
  -4,378
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -156
  -213
  -266
  -231
  -90
  78
  273
  494
  739
  1,009
  1,222
  1,537
  1,873
  2,230
  2,606
  3,001
  3,415
  3,847
  4,297
  4,764
  5,250
  5,755
  6,278
  6,821
  7,384
  7,968
  8,575
  9,204
  9,858
  10,538
Discount rate, %
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
  -148
  -189
  -221
  -178
  -64
  51
  162
  264
  353
  426
  453
  494
  517
  521
  510
  486
  450
  407
  359
  309
  260
  213
  171
  133
  102
  75
  54
  38
  26
  17
Current shareholders' claim on cash, %
  94.6
  91.7
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8

Reliance Steel & Aluminum Co. is a metals service center company in North America (the United States and Canada). As of December 31, 2016, the Company's network of metals service centers operated over 300 locations in 39 states in the United States and in 12 other countries (Australia, Belgium, Canada, China, France, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom). As of December 31, 2016, it provided metals processing services and distributes a range of more than 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products in a range of industries. Its various metals service centers process and distribute only specialty metals. It delivers a range of products from facilities located across the United States and Canada. It provides a range of processing services for its customers' and delivers products to fabricators, manufacturers and other end users.

FINANCIAL RATIOS  of  Reliance Steel&Aluminum (RS)

Valuation Ratios
P/E Ratio 19.6
Price to Sales 0.7
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 9.5
Price to Free Cash Flow 12.6
Growth Rates
Sales Growth Rate -7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -9.9%
Cap. Spend. - 3 Yr. Gr. Rate -1.6%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 44.5%
Total Debt to Equity 46.5%
Interest Coverage 6
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 5.2%
Return On Total Capital 5.1%
Ret/ On T. Cap. - 3 Yr. Avg. 5.4%
Return On Equity 7.5%
Return On Equity - 3 Yr. Avg. 8.2%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 30.1%
Gross Margin - 3 Yr. Avg. 27.5%
EBITDA Margin 8.5%
EBITDA Margin - 3 Yr. Avg. 8.2%
Operating Margin 5.9%
Oper. Margin - 3 Yr. Avg. 5.9%
Pre-Tax Margin 5%
Pre-Tax Margin - 3 Yr. Avg. 5%
Net Profit Margin 3.5%
Net Profit Margin - 3 Yr. Avg. 3.5%
Effective Tax Rate 28%
Eff/ Tax Rate - 3 Yr. Avg. 30.1%
Payout Ratio 39.5%

RS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RS stock intrinsic value calculation we used $9721 million for the last fiscal year's total revenue generated by Reliance Steel&Aluminum. The default revenue input number comes from 0001 income statement of Reliance Steel&Aluminum. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our RS stock valuation model: a) initial revenue growth rate of 20.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.8%, whose default value for RS is calculated based on our internal credit rating of Reliance Steel&Aluminum, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Reliance Steel&Aluminum.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of RS stock the variable cost ratio is equal to 86.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $620 million in the base year in the intrinsic value calculation for RS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Reliance Steel&Aluminum.

Corporate tax rate of 27% is the nominal tax rate for Reliance Steel&Aluminum. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the RS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for RS are equal to 32.3%.

Life of production assets of 21.2 years is the average useful life of capital assets used in Reliance Steel&Aluminum operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for RS is equal to 23.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4667.1 million for Reliance Steel&Aluminum - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 72.35 million for Reliance Steel&Aluminum is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Reliance Steel&Aluminum at the current share price and the inputted number of shares is $5.9 billion.

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COMPANY NEWS

▶ A Holistic Look At Reliance Steel & Aluminum Co (NYSE:RS)   [Oct-04-18 11:40AM  Simply Wall St.]
▶ Reliance Steel: 2Q Earnings Snapshot   [09:53AM  Associated Press]
▶ US stocks hit new lows as Canada fires back in trade war   [May-31-18 02:35PM  Yahoo Finance Video]
▶ Rolling Out the 2018 Mid Cap Dividend Growers Portfolio   [May-16-18 11:52AM  TheStreet.com]
▶ Top Ranked Value Stocks to Buy for March 8th   [Mar-08-18 06:49AM  Zacks]
▶ 8 Stocks NWQ Managers Continues to Buy   [Mar-01-18 02:34PM  GuruFocus.com]
▶ Top 4 Steel Stocks for 2018   [12:39PM  Investopedia]
▶ Reliance Steel tops Street 4Q forecasts   [08:20AM  Associated Press]
▶ KeyBanc Issues Stronger Forecast For 3 Steel Names   [Jan-11-18 01:47PM  Benzinga]
▶ Best Rated NYSE Materials Dividend Stocks   [Jan-07-18 01:02PM  Simply Wall St.]
▶ Why Reliance Steel & Aluminum Co Stock Is a Buy on Any Dip   [Dec-12-17 11:43AM  InvestorPlace]
▶ RELIANCE STEEL & ALUMINUM CO to Host Earnings Call   [Oct-26-17 08:45AM  ACCESSWIRE]
▶ Reliance Steel beats Street 3Q forecasts   [07:05AM  Associated Press]
▶ Hedge Fund Bullishness on Metal Stocks Hits 3-Year High   [Oct-09-17 08:00AM  Insider Monkey]

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