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:
We started the process of determining a valid price forecast for Southern Copper Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Southern Copper Corp ranked in the 80th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 394.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Southern Copper Corp, consider:
As a business, SCCO is generating more cash flow than 89.44% of positive cash flow stocks in the Basic Materials.
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 30.24% of tickers in our DCF set.
Southern Copper Corp's effective tax rate, as measured by taxes paid relative to net income, is at 27 -- greater than 89.12% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Southern Copper Corp? See KL, APOG, BCC, ICL, and ODC.
With copper prices are gaining on strong demand, we suggest stocks like BHP Group (BHP) Rio Tinto (RIO), Southern Copper (SCCO), Freeport-McMoRan (FCX) and Kaz Minerals (KZMYY) to ride on the momentum.