Southern Copper Corporation (SCCO) Intrinsic Value & DCF Valuation
Copper · NYSE
Current Price
$216.00
Intrinsic Value
Outside reliable range
What Is Southern Copper Corporation's Intrinsic Value?
The base-case DCF model produces an intrinsic value estimate for Southern Copper Corporation (SCCO) that falls outside its reliable range, so treat any single number with extra caution. This usually happens with unusual cash flow patterns or rapid recent changes in the business.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Southern Copper Corporation (SCCO) Undervalued?
Because the model output for SCCO is outside the reliable range, no undervalued or overvalued read is given here. Use the calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Vast, High-Quality Reserves
SCCO possesses some of the world's largest and highest-grade copper reserves. This geological advantage provides a long-term, low-cost production base.
↑Integrated Operations
The company benefits from vertical integration, controlling operations from mining to smelting and refining. This enhances efficiency and cost control.
↑Scale and Infrastructure
SCCO's extensive mining and processing infrastructure, developed over decades, creates significant barriers to entry for new competitors.
INVESTMENT RISKS
↓Geopolitical and Social License Risk
Operations are concentrated in regions with potential for political instability and social unrest, which can disrupt production and impact profitability.
↓Operational and Environmental Incidents
Mining operations carry inherent risks of accidents, equipment failures, and environmental incidents, which can lead to production stoppages and reputational damage.
↓Demand Sensitivity to Global Economy
Copper demand is closely linked to global economic growth, particularly in construction and manufacturing, making SCCO vulnerable to economic downturns.
Base case
SCCO base case valuation
Base case assumptions: 1.9% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SCCO valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Southern Copper Corporation respond.
Open DCF Calculator for SCCOCompany Overview
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Mexico, the United States, Peru, Brazil, Chile, and Other American countries. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of copper-molybdenum concentrates and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of copper, molybdenum, zinc, silver, gold and lead. It operates the Toquepala and Cuajone open-pit mines, smelter, and refinery in Peru; La Caridad, an open-pit copper mine, as well as copper ore concentrator; and SX-EW plant, a smelter, refinery, and rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as copper concentrators and operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; coal mine; and zinc refinery. The company has interests in 164,805 hectares and 505,788 hectares of concessions in Peru and Mexico; and 98,634 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was formerly known as Southern Peru Copper Corp. and changed its name to Southern Copper Corporation in July 1996. The company was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation operates as a subsidiary of Americas Mining Corporation.
Financial Metrics — SCCO Stock Valuation Data
Revenue/Share (TTM)
$19.04
FCF/Share (TTM)
$7.19
ROIC (TTM)
26.2%
ROE (TTM)
49.4%
P/FCF
30.2x
EV/EBITDA
18.4x
FCF Yield
3.31%
Debt/Equity
0.68x
Based on trailing twelve-month data, SCCO shows a free cash flow per share of $7.19 and a ROIC of 26.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 30.2x and FCF yield of 3.31% are important context metrics when evaluating SCCO's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of SCCO?
Southern Copper Corporation currently generates $7.19 in free cash flow per share. At the current price of $216.00, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is SCCO undervalued?
SCCO trades at a P/FCF ratio of 30.2x with a free cash flow yield of 3.31%. This P/FCF is in a moderate range. However, whether SCCO is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value SCCO stock using DCF?
To perform a DCF valuation on Southern Copper Corporation: (1) Start with the trailing free cash flow per share ($7.19) as the base, (2) project future FCF growth over 5-10 years based on Copper industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SCCO's risk profile — with a debt-to-equity of 0.68x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to SCCO?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Southern Copper Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Copper trends, then discounting those amounts to today's dollars. SCCO's ROIC of 26.2% reflects how efficiently the company converts invested capital into profit.
How does WACC affect SCCO stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SCCO, with a debt-to-equity ratio of 0.68x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 18.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See SCCO PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value SCCO with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.