Is Southern Copper Corporation (SCCO) overvalued?
On Equity Rank's model estimate, SCCO trades 68% above its fair value. Southern Copper Corporation (SCCO) last closed at $167.27; the multi-method model fair value is $99.58.
| Price | Model fair value | Price vs model |
|---|---|---|
| $167.27 | $99.58 | 68% above |
What the answer rests on
- 0 of 11 valuation methods put SCCO's value above its price and 11 put it below, so the methods mostly agree.
- To justify today's price, SCCO's free cash flow would need to grow about 19.2% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 22.7% a year.
- SCCO trades at 23.6 times its last year's earnings, against a median of 12.1 for 36 profitable Mining companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 30% above to 190% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind SCCO's fair value · What prices assume · Other companies