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Reliance Steel & Aluminum Co. – Iron and Steel Mills and Ferroalloy Manufacturing
reliance steel & aluminum co. (nyse:rs) headquartered in los angeles, california, is the largest metals service center company in north america. through a network of more than 300 locations in 39 states and 12 countries outside of the united states, the company provides value-added metals processing services and distributes a full line of over 100,000 metal products. these products include galvanized, hot-rolled and cold-finished steel, stainless steel, aluminum, brass, copper, titanium and alloy steel sold to more than 125,000 customers in a broad range of industries. some of these metals service centers provide processing services for specialty metals only. in the mid-1970's, the company began to establish specialty metals centers stocked with inventories of selected metals and equipped with automated materials handling and precision cutting equipment. beginning in the early 1990's, owners of successful service center companies started to sell these companies as they were reaching re
Analysis Results
Intrinsic Value $826.74
Latest Price $263.21
Relative Value 68% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 16.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.11 1.95
2024 2.45 2.1
2025 2.84 2.26
2026 3.3 2.43
2027 3.84 2.61
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 65.5 billion. This corresponds to a present value of 41.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.4 billion. Adding in the terminal value gives a total present value of 52.7 billion.

There are presently 63.8 million outstanding shares, so the intrinsic value per share is 826.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,886,600,000
Current Cash 1,173,400,000
Current Liabilities 1,375,300,000
Current Debt 508,200,000
Non-Cash Working Capital (NCWC) 2,846,100,000
Change in NCWC 46,500,000
EBIT 2,506,900,000
Tax Provision 586,200,000
Depreciation and Amortization 240,200,000
Capital Expenditure -341,800,000
Unlevered Free Cash Flow 1,847,148,592
Current Assets 4,160,100,000
Current Cash 300,500,000
Current Liabilities 1,065,000,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 2,799,600,000
Change in NCWC 977,300,000
EBIT 1,953,600,000
Tax Provision 465,700,000
Depreciation and Amortization 230,200,000
Capital Expenditure -236,600,000
Unlevered Free Cash Flow 2,441,364,999
Current Assets 3,112,800,000
Current Cash 683,500,000
Current Liabilities 613,000,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 1,822,300,000
Change in NCWC -403,200,000
EBIT 673,800,000
Tax Provision 105,800,000
Depreciation and Amortization 227,300,000
Capital Expenditure -172,000,000
Unlevered Free Cash Flow 176,824,215
Current Assets 3,010,200,000
Current Cash 174,300,000
Current Liabilities 675,300,000
Current Debt 64,900,000
Non-Cash Working Capital (NCWC) 2,225,500,000
Change in NCWC -297,400,000
EBIT 1,014,700,000
Tax Provision 223,200,000
Depreciation and Amortization 219,300,000
Capital Expenditure -242,200,000
Unlevered Free Cash Flow 450,688,561
Current Assets 3,285,000,000
Current Cash 128,200,000
Current Liabilities 699,100,000
Current Debt 65,200,000
Non-Cash Working Capital (NCWC) 2,522,900,000
Change in NCWC 237,700,000
EBIT 974,500,000
Tax Provision 208,800,000
Depreciation and Amortization 215,200,000
Capital Expenditure -239,900,000
Unlevered Free Cash Flow 948,285,798
Current Assets 3,051,300,000
Current Cash 154,400,000
Current Liabilities 703,700,000
Current Debt 92,000,000
Non-Cash Working Capital (NCWC) 2,285,200,000
Change in NCWC 293,000,000
EBIT 666,600,000
Tax Provision -37,200,000
Depreciation and Amortization 218,400,000
Capital Expenditure -161,600,000
Unlevered Free Cash Flow 1,016,400,000
Current Assets 2,688,500,000
Current Cash 122,800,000
Current Liabilities 656,000,000
Current Debt 82,500,000
Non-Cash Working Capital (NCWC) 1,992,200,000
Change in NCWC 31,200,000
EBIT 565,700,000
Tax Provision 120,100,000
Depreciation and Amortization 222,000,000
Capital Expenditure -154,900,000
Unlevered Free Cash Flow 505,704,170
Current Assets 2,554,200,000
Current Cash 104,300,000
Current Liabilities 989,700,000
Current Debt 500,800,000
Non-Cash Working Capital (NCWC) 1,961,000,000
Change in NCWC -485,000,000
EBIT 599,900,000
Tax Provision 142,500,000
Depreciation and Amortization 218,500,000
Capital Expenditure -172,200,000
Unlevered Free Cash Flow -25,165,271
Current Assets 3,121,100,000
Current Cash 106,200,000
Current Liabilities 662,800,000
Current Debt 93,900,000
Non-Cash Working Capital (NCWC) 2,446,000,000
Change in NCWC 327,600,000
EBIT 619,600,000
Tax Provision 170,000,000
Depreciation and Amortization 213,800,000
Capital Expenditure -190,400,000
Unlevered Free Cash Flow 777,790,188
Current Assets 2,738,900,000
Current Cash 83,600,000
Current Liabilities 573,400,000
Current Debt 36,500,000
Non-Cash Working Capital (NCWC) 2,118,400,000
Change in NCWC 433,200,000
EBIT 569,100,000
Tax Provision 153,600,000
Depreciation and Amortization 192,400,000
Capital Expenditure -168,000,000
Unlevered Free Cash Flow 843,940,727
Current Assets 2,277,400,000
Current Cash 97,600,000
Current Liabilities 578,200,000
Current Debt 83,600,000
Non-Cash Working Capital (NCWC) 1,685,200,000
Change in NCWC 59,300,000
EBIT 661,400,000
Tax Provision 201,100,000
Depreciation and Amortization 151,500,000
Capital Expenditure -214,000,000
Unlevered Free Cash Flow 439,940,170

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