Reliance Inc (RS) is overvalued and Steel Dynamics Inc (STLD) is overvalued.
Both trade above our estimate of their intrinsic value. RS is the closer of the two: -63%, against -129% for STLD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $237.41; the price of $386.95 is 63% above that value, and 74% of that value comes from beyond year five.
Leak Score 43/100 on 10 of 12 signals
Discounting its cash flows at 11.0% (average of 3 methods) values the shares at $102.14; the price of $233.99 is 129% above that value, and 69% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
| Metric | RS | STLD |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $386.95 | $233.99 |
| Intrinsic value | $237.41 | $102.14 |
| Margin of safety | -63% | -129% |
| Leak Score | 43/100 (10/12) | 45/100 (10/12) |
| Market cap | $19.8B | $33.5B |
| Revenue growth, 5 years | 10.2% | 13.6% |
| Operating margin | 7.9% | 10.0% |
| Net margin | 5.7% | 7.8% |
| Return on equity | 12.2% | 17.6% |
| Debt to equity | 0.27 | 0.44 |
| P/E | 22.5x | 21.2x |
| Forward P/E | 16.4x | 11.7x |
| P/B | 2.7x | 3.6x |
| Dividend yield | 1.3% | 0.9% |