Reliance Steel & Aluminum Co. (RS) Stock Valuation — PE Analysis
Steel · NYSE
Current Price
$413.43
PE Ratio (TTM)
26.5x
Intrinsic Value
$363.46
-13.7% margin of safety
COMPETITIVE MOAT
↑Scale and Distribution Network
RS's extensive network of service centers and vast inventory provides a significant competitive advantage. This allows for efficient delivery and broad customer reach across diverse industries.
↑Customer Relationships and Service
Long-standing relationships with a diverse customer base, coupled with value-added services like cutting and fabrication, create switching costs. This deepens customer loyalty and revenue stability.
↑Acquisition Strategy
Strategic acquisitions have expanded RS's market share and geographic presence. This inorganic growth bolsters its competitive position and diversifies its revenue streams.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in steel and aluminum prices directly impact RS's profitability. Significant price drops can erode margins and reduce the value of its inventory.
↓Economic Sensitivity
Demand for steel and aluminum is closely tied to construction and manufacturing activity. Economic downturns or slowdowns in these sectors can lead to reduced sales volumes.
↓Intense Competition
The steel and aluminum distribution industry is fragmented and competitive. RS faces pressure from both larger players and smaller regional distributors.
Base case
RS base case PE valuation
A base case PE valuation for RS estimates a fair value of about $363.46 per share, against a current price of $413.43. The model assumes 3.4% annual earnings growth, a 26x target PE multiple, and a 10% discount rate.
Intrinsic Value
$363.46
Margin of safety
-13.7%
Expected annual return
-2.5%
Base case assumptions: 3.4% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the RS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Reliance Steel & Aluminum Co. respond.
Open PE Calculator for RSCompany Overview
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.
Financial Metrics — RS PE Stock Valuation Data
PE Ratio (TTM)
26.5x
PEG Ratio
2.74
Earnings Yield
3.78%
ROE (TTM)
11.2%
Revenue/Share (TTM)
$287.33
Dividend Yield
1.19%
Debt/Equity
0.28x
Frequently Asked Questions
What is the PE ratio of RS?
The trailing twelve-month PE ratio of RS reflects how much investors pay per dollar of Reliance Steel & Aluminum Co.'s earnings. This metric is most useful when compared to Steel peers and the company's own historical range.
Is RS overvalued based on PE ratio?
RS's PE of 26.5x combined with a PEG ratio of 2.74 provides a growth-adjusted perspective. A PEG above 2.0 suggests RS may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Steel, a DCF analysis may be more appropriate.
How do I value RS stock using PE ratio?
To value Reliance Steel & Aluminum Co. using PE: (1) Compare the current PE (26.5x) against the Steel median to assess relative pricing, (2) check the PEG ratio (2.74) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of RS?
RS's PEG ratio is 2.74, calculated by dividing the PE ratio (26.5x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for RS stock valuation?
PE ratio gives a quick relative read — how RS is priced versus Steel peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See RS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value RS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.