Should You Reconsider Reliance After Its 3.9% Monthly Dip and Latest Valuation Analysis?

Simply Wall St.10-23

Thinking about what to do with Reliance stock right now? You’re not alone. With so much buzz in the market and news cycles pushing headlines faster than ever, it’s easy to feel both curious and ...

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With so much buzz in the market and news cycles pushing headlines faster than ever, it’s easy to feel both curious and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-rs/reliance/news/should-you-reconsider-reliance-after-its-39-monthly-dip-and\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Reconsider Reliance After Its 3.9% Monthly Dip and Latest Valuation Analysis?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Reconsider Reliance After Its 3.9% Monthly Dip and Latest Valuation Analysis?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-23 21:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-rs/reliance/news/should-you-reconsider-reliance-after-its-39-monthly-dip-and><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Thinking about what to do with Reliance stock right now? You’re not alone. With so much buzz in the market and news cycles pushing headlines faster than ever, it’s easy to feel both curious and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-rs/reliance/news/should-you-reconsider-reliance-after-its-39-monthly-dip-and\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0320765489.SGD","symbol_name":"FTIF - Franklin Mutual US Value A Acc SGD","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-rs/reliance/news/should-you-reconsider-reliance-after-its-39-monthly-dip-and","article_id":"2577580272","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2055000-choice1-main-header/1585186785008"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/materials/nyse-rs/reliance/news/should-you-reconsider-reliance-after-its-39-monthly-dip-and","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2577580272","pubTimestamp":1761225739,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Thinking about what to do with Reliance stock right now? You’re not alone. With so much buzz in the market and news cycles pushing headlines faster than ever, it’s easy to feel both curious and cautious. Reliance has been a favorite among long-term investors, and for good reason. The last five years alone saw the stock rally a remarkable 180.3%. Even over the past three years, despite a few bumps, Reliance delivered a strong 48.1% gain. However, more recently, things have been a bit choppier...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","BK4006":"钢铁","RS":"Reliance Steel & Aluminum Co"},"translate_title":"在Reliance月度下跌3.9%和最新估值分析之后，您是否应该重新考虑？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RS":1,"DCF":1},"content_text":"Thinking about what to do with Reliance stock right now? You’re not alone. With so much buzz in the market and news cycles pushing headlines faster than ever, it’s easy to feel both curious and cautious. Reliance has been a favorite among long-term investors, and for good reason. The last five years alone saw the stock rally a remarkable 180.3%. Even over the past three years, despite a few bumps, Reliance delivered a strong 48.1% gain. However, more recently, things have been a bit choppier. The stock is down 1.4% over the past year, and has slipped 3.9% in the last month. Still, last week the stock held steady with a modest gain of 0.6%. Much of this volatility ties back to recent developments in Reliance’s business mix and expansion plans, including its increasing focus on digital and retail segments. These strategic moves, coupled with regulatory shifts in some of its markets, have shifted how investors perceive both growth potential and risk. For those sizing up whether Reliance offers value at its recent close of 274.34, here’s one indicator: our valuation score, based on six factors that flag undervalued companies, comes in at 3. This means Reliance is undervalued in three out of six important checks. So, what does that tell us about Reliance’s true worth? Let’s break down the major valuation methods to see what the numbers and context really mean. At the end, we’ll explore an even better way to gauge whether Reliance is undervalued or not, going beyond the usual analysis. Why Reliance is lagging behind its peers AdvertisementApproach 1: Reliance Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future free cash flows and discounting them back to today’s dollars. This method helps investors gauge what a company’s shares are truly worth based on how much cash it is expected to generate over time. For Reliance, current Free Cash Flow stands at $834.95 Million. Analysts provide forecasts for the next five years, and projections beyond that are carefully extrapolated based on industry trends. For example, the forecasted FCF for 2026 is $909.38 Million, gradually declining to $703.12 Million by 2035. All projections are presented in US dollars to align with reporting currency. Using a 2 Stage Free Cash Flow to Equity model, Simply Wall St estimates the fair value of Reliance shares to be $233.35. With the current closing price at $274.34, the DCF valuation implies Reliance is trading at a 17.6% premium to its long-term cash flow potential. This suggests the stock is overvalued on this metric. Result: OVERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Reliance. RS Discounted Cash Flow as at Oct 2025 Our Discounted Cash Flow (DCF) analysis suggests Reliance may be overvalued by 17.6%. Find undervalued stocks or create your own screener to find better value opportunities. Approach 2: Reliance Price vs Earnings For reliably profitable companies like Reliance, the Price-to-Earnings (PE) ratio is often the preferred valuation metric. PE tells us how much investors are willing to pay for each dollar of a company's earnings, making it a key measure for assessing whether a stock is potentially cheap or expensive compared to its profit generation. The \"right\" or \"fair\" PE ratio varies based on factors like expected future growth and risk. Companies with strong and reliable growth prospects or defensive qualities can justify a higher PE, while businesses facing more uncertainty or slower growth typically trade at lower multiples. It is all about balancing what you pay today with expected rewards and risks in the future. Currently, Reliance trades at a PE ratio of 19.55x. This is below the Metals and Mining industry average of 24.29x and the peer average of 33.44x. However, Simply Wall St calculates Reliance’s Fair Ratio, tailored to its growth, profit margins, risk profile, industry conditions, and market cap, at 20.84x. The Fair Ratio uses a data-driven approach to factor in nuances that industry averages and peer comparisons often miss, such as company-specific growth forecasts or risk exposures. Because Reliance's current PE ratio is very close to its Fair Ratio, investors can consider its shares to be priced about right based on this method. Result: ABOUT RIGHT NYSE:RS PE Ratio as at Oct 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Reliance Narrative Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a simple but powerful way to bring your perspective to life, connecting Reliance’s business story—what you believe about future revenue, earnings, and margins—with a financial forecast and a calculated fair value. Instead of just viewing the numbers, you tell the story behind them, translating your assumptions into a valuation that makes sense for you. Narratives give context to your forecasts and are easy to use. Simply Wall St’s platform lets millions of investors create, share, and update their Narratives in the Community page. These Narratives bridge the gap between a company’s strategic direction and the numbers, helping you decide whether your estimated Fair Value compares to the current market Price. Narratives also update dynamically when things change, such as after new earnings or major news releases. For example, looking at Reliance, some investors are bullish, seeing opportunities in US infrastructure spending and projecting fair values as high as $350. Others, who are more cautious about demand volatility and regulatory risks, see a value closer to $296. These differences reflect the unique stories and expectations investors have for the business. Do you think there's more to the story for Reliance? Create your own Narrative to let the Community know! NYSE:RS Community Fair Values as at Oct 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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