Southern Copper Corporation (SCCO) Stock Valuation — PE Analysis
Copper · NYSE
Current Price
$175.47
PE Ratio (TTM)
25.7x
Intrinsic Value
$153.81
-14.1% 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 benefits from vertical integration, controlling operations from mining to smelting and refining. This reduces reliance on third parties and captures more value across the supply chain.
↑Scale and Efficiency
SCCO's massive scale allows for significant operational efficiencies and economies of scale. This translates to lower per-unit production costs, a key differentiator in the commodity sector.
INVESTMENT RISKS
↓Geopolitical Instability
SCCO operates in regions with potential geopolitical risks. Political instability, changes in government policy, or social unrest can disrupt operations and impact production.
↓Labor Relations
The company's operations are labor-intensive. Labor disputes, strikes, or union negotiations can lead to production stoppages and increased operating costs.
↓Exploration and Development Costs
Sustaining production requires continuous investment in exploration and development of new reserves. These activities are capital-intensive and carry inherent risks of failure or higher-than-expected costs.
Base case
SCCO base case PE valuation
A base case PE valuation for SCCO estimates a fair value of about $153.81 per share, against a current price of $175.47. The model assumes 2.7% annual earnings growth, a 26x target PE multiple, and a 10% discount rate.
Intrinsic Value
$153.81
Margin of safety
-14.1%
Expected annual return
-2.6%
Base case assumptions: 2.7% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 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 PE Stock Valuation Data
PE Ratio (TTM)
25.7x
PEG Ratio
0.51
Earnings Yield
3.90%
ROE (TTM)
49.4%
Revenue/Share (TTM)
$19.04
Dividend Yield
2.11%
Debt/Equity
0.68x
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 25.7x combined with a PEG ratio of 0.51 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (25.7x) against the Copper median to assess relative pricing, (2) check the PEG ratio (0.51) 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 0.51, calculated by dividing the PE ratio (25.7x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 49.4%, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.