Reliance Valuation

Q: What is the Fair Price of RS * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RS * (MX$5490) is trading above our estimate of [[fair value]] (MX$857.39)

Is RS * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RS * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RS * (MX$5490) is trading above our estimate of fair value (MX$857.39)

Significantly Below Fair Value: RS * is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RS *?

Key metric: As RS * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RS *. This is calculated by dividing RS *'s market cap by their current earnings.
What is RS *'s PE Ratio?
PE Ratio	16x
Earnings	US$1.04b
Market Cap	US$16.72b

RS * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	11.2x
PEG Ratio	-5.1x

Price to Earnings Ratio vs Peers

How does RS *'s PE Ratio compare to its peers?

The above table shows the PE ratio for RS * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	29.8x
ICH B Industrias CH S. A. B. de C. V	8.7x	n/a	Mex$73.4b
GMEXICO B Grupo México. de	11.1x	6.1%	Mex$807.1b
PE&OLES * Industrias Peñoles. de	72x	n/a	Mex$121.2b
CEMEX CPO CEMEX. de	27.3x	31.1%	Mex$158.4b
RS * Reliance	16x	-3.1%	Mex$16.7b

Price-To-Earnings vs Peers: RS * is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (29.8x).

Price to Earnings Ratio vs Industry

How does RS *'s PE Ratio compare vs other companies in the South American Metals and Mining Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RS * is expensive based on its Price-To-Earnings Ratio (16x) compared to the South American Metals and Mining industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is RS *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RS * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RS *'s Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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