Reliance Inc (RS) is overvalued and Ternium SA ADR (TX) is slightly undervalued.
Against our estimates of intrinsic value, TX trades at the wider discount: a margin of safety of +19%, against -63% for RS.
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 8.3% (average of 3 methods) values the shares at $69.30; the price of $56.43 is 19% below that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 2 of 12 signals
| Metric | RS | TX |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $386.95 | $56.43 |
| Intrinsic value | $237.41 | $69.30 |
| Margin of safety | -63% | +19% |
| Leak Score | 43/100 (10/12) | 30/100 (2/12) |
| Market cap | $19.8B | $11.1B |
| Revenue growth, 5 years | 10.2% | 11.9% |
| Operating margin | 7.9% | 7.8% |
| Net margin | 5.7% | 4.4% |
| Return on equity | 12.2% | 5.7% |
| Debt to equity | 0.27 | 0.25 |
| P/E | 22.5x | 15.9x |
| Forward P/E | 16.4x | 7.5x |
| P/B | 2.7x | 0.9x |
| Dividend yield | 1.3% | 4.3% |