Is Southern Copper Corp. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Southern Copper Corp. has moved from expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 24, an EV to EBITDA of 13.03, and a PEG ratio of 0.49, which suggests that the stock may be undervalued relative to its growth prospects.
In comparison to peers, Freeport-McMoRan, Inc. is considered expensive with a P/E of 17.21 and an EV to EBITDA of 8.45, highlighting that Southern Copper Corp. is positioned more favorably in terms of valuation. Additionally, the company's strong return on capital employed (ROCE) of 46.96% and return on equity (ROE) of 37.61% further support its valuation stance. While the stock has underperformed the S&P 500 over the past year, it has shown significant growth over a three- and five-year period, reinforcing its potential as a solid investment.