Southern Copper Corporation (SCCO) Stock Valuation — PE Analysis
Copper · NYSE
Current Price
$189.79
PE Ratio (TTM)
31.4x
Intrinsic Value
$179.93
-5.5% margin of safety
COMPETITIVE MOAT
↑Vast, Low-Cost Reserves
SCCO possesses some of the world's largest and lowest-cost copper reserves. This provides a significant cost advantage over competitors, ensuring profitability even in downcycles.
↑Integrated Operations
The company's vertical integration from mining to smelting and refining offers operational efficiencies and control over the entire value chain. This reduces reliance on third parties and captures more margin.
↑Strategic Mine Locations
Its mines are located in politically stable regions with favorable mining regulations. This reduces geopolitical risk and ensures consistent production and expansion capabilities.
INVESTMENT RISKS
↓Commodity Price Volatility
Copper prices are inherently volatile, driven by global economic conditions and demand fluctuations. Significant price drops can severely impact SCCO's revenue and profitability.
↓Environmental and Regulatory Hurdles
Mining operations face increasing environmental scrutiny and stringent regulations. Compliance costs and potential operational disruptions pose ongoing risks to SCCO.
↓Geopolitical and Social Instability
While generally stable, operations in Latin America can be subject to political shifts, labor disputes, and social unrest. These factors can disrupt production and impact costs.
Base case
SCCO base case PE valuation
A base case PE valuation for SCCO estimates a fair value of about $179.93 per share, against a current price of $189.79. The model assumes 5.6% annual earnings growth, a 31x target PE multiple, and a 10% discount rate.
Intrinsic Value
$179.93
Margin of safety
-5.5%
Expected annual return
-1.1%
Base case assumptions: 5.6% annual earnings growth, 31x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SCCO PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Southern Copper Corporation respond.
Open PE Calculator for SCCOCompany Overview
Southern Copper Corporation, a subsidiary of Americas Mining Corporation, was founded in Phoenix, Arizona, in 1952 and operates as a leading player in the mining industry. The company's core business involves the exploration, extraction, smelting, and refining of copper and other essential minerals throughout Peru, Mexico, Argentina, Ecuador, and Chile. Its comprehensive operations cover the full lifecycle of copper production: from the mining, milling, and flotation of copper ore to generate copper and molybdenum concentrates, through the smelting phase to produce blister and anode copper, and culminating in the refining of anode copper into high-purity copper cathodes. Beyond its primary focus on copper, the company also yields molybdenum concentrate, sulfuric acid, refined silver, gold, and other materials such as zinc and lead. Significant operational hubs include: Peru: The open-pit mines of Toquepala and Cuajone, complemented by a smelter and refinery. Mexico: The integrated La Caridad facility, which features an open-pit copper mine, a concentrator, an SX-EW plant, a smelter, a refinery, and a rod plant. Also in Mexico, the Buenavista open-pit copper mine, equipped with two concentrators and two SX-EW plants. Furthermore, the company manages five underground mines that produce zinc, lead, copper, silver, and gold, along with a coal mine for coal and coke, and a zinc refinery. The corporation possesses extensive exploration rights, encompassing 82,134 hectares in Peru, 493,533 hectares in Mexico, 246,346 hectares in Argentina, 29,888 hectares in Chile, and 7,299 hectares in Ecuador.
Financial Metrics — SCCO PE Stock Valuation Data
PE Ratio (TTM)
31.4x
PEG Ratio
0.99
Earnings Yield
3.19%
ROE (TTM)
46.0%
Revenue/Share (TTM)
$17.71
Dividend Yield
1.95%
Debt/Equity
0.63x
Frequently Asked Questions
What is the PE ratio of SCCO?
The trailing twelve-month PE ratio of SCCO reflects how much investors pay per dollar of Southern Copper Corporation's earnings. This metric is most useful when compared to Copper peers and the company's own historical range.
Is SCCO overvalued based on PE ratio?
SCCO's PE of 31.4x combined with a PEG ratio of 0.99 provides a growth-adjusted perspective. A PEG below 1.0 suggests SCCO may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Copper, a DCF analysis may be more appropriate.
How do I value SCCO stock using PE ratio?
To value Southern Copper Corporation using PE: (1) Compare the current PE (31.4x) against the Copper median to assess relative pricing, (2) check the PEG ratio (0.99) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SCCO?
SCCO's PEG ratio is 0.99, calculated by dividing the PE ratio (31.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SCCO stock valuation?
PE ratio gives a quick relative read — how SCCO is priced versus Copper peers. DCF provides an absolute value based on projected free cash flows. For SCCO, with a strong ROE of 46.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SCCO DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value SCCO with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.