Southern Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador. The company was founded in 1952 and is based in Phoenix, Arizona.
SCCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Southern Copper Corp. To summarize, we found that Southern Copper Corp ranked in the 86th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Southern Copper Corp ended up being:
In the past 2.99 years, Southern Copper Corp has a compound free cash flow growth rate of 0.88%; that's higher than 89.1% of free cash flow generating stocks in the Basic Materials sector.
Southern Copper Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 23.47% of tickers in our DCF set.
SCCO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 23.47% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SCCO, try FMC, BMCH, USCR, NTIC, and TG.