Is Southern Copper Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Southern Copper Corp. has moved from very expensive to expensive, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 24, which is higher than its peer Freeport-McMoRan's P/E of 17.70, and an EV to EBITDA ratio of 13.03 compared to Freeport-McMoRan's 8.70. Additionally, the PEG ratio of 0.49 suggests that the stock may be priced too high relative to its growth potential.
In comparison to industry peers, Southern Copper's valuation metrics indicate it is trading at a premium, with a price to book value of 8.90 and an EV to EBIT of 14.93. While the company has shown strong returns, including a year-to-date return of 46.37% compared to the S&P 500's 13.30%, this performance does not fully justify its elevated valuation levels. Overall, Southern Copper Corp. is viewed as overvalued in the current market context.