Is McEwen Mining, Inc. overvalued or undervalued?

As of 14 March 2025, the valuation grade for McEwen Mining, Inc. has moved from attractive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly given its negative P/E ratio and poor return metrics, with a Price to Book Value of 1.05 and an EV to EBITDA of 25.18. In comparison, Gatos Silver, Inc. has a P/E of 29.51, while Caledonia Mining Corp. Plc is considered expensive with a P/E of 12.21, highlighting that McEwen Mining is not competitively positioned within its industry.
Despite McEwen Mining's impressive year-to-date return of 75.06%, which significantly outperformed the S&P 500's 12.22%, the underlying financial metrics suggest that the stock may not be justified at its current price level. The company's return on equity (ROE) stands at -6.30%, further supporting the conclusion that it is overvalued in the current market environment.