Ero Copper Corp
TSX:ERO

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Ero Copper Corp
TSX:ERO
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Price: 37.86 CAD 2.6% Market Closed
Market Cap: CA$3.9B

EV/OCF

8.4
Current
31%
Cheaper
vs 3-y average of 12.2

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.4
=
Enterprise Value
CA$4.7B
/
Operating Cash Flow
$395.1m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.4
=
Enterprise Value
CA$4.7B
/
Operating Cash Flow
$395.1m

Valuation Scenarios

Ero Copper Corp is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (12.2), the stock would be worth CA$55.03 (45% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+45%
Average Upside
31%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 8.4 CA$37.86
0%
3-Year Average 12.2 CA$55.03
+45%
5-Year Average 9.7 CA$43.71
+15%
Industry Average 10.2 CA$46.2
+22%
Country Average 11.9 CA$53.94
+42%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
CA
Ero Copper Corp
TSX:ERO
3.8B CAD 8.4 10.8
US
Southern Copper Corp
NYSE:SCCO
153.8B USD 32.7 35.5
US
Freeport-McMoRan Inc
NYSE:FCX
101B USD 18.9 46
UK
Antofagasta PLC
LSE:ANTO
37.3B GBP 16.6 37
CN
Jiangxi Copper Co Ltd
SSE:600362
159.6B CNY -29.6 22.4
CA
Lundin Mining Corp
TSX:LUN
31.9B CAD 17.3 17.9
CA
First Quantum Minerals Ltd
TSX:FM
30.7B CAD 13.8 -819.7
PL
KGHM Polska Miedz SA
WSE:KGH
64.8B PLN 17.1 17.6
CN
Tongling Nonferrous Metals Group Co Ltd
SZSE:000630
86.5B CNY -109.7 46.9
DE
Aurubis AG
XETRA:NDA
8.4B EUR 17.7 14
AU
OZ Minerals Ltd
ASX:OZL
9.4B AUD 16 45.5

Market Distribution

In line with most companies in Canada
Percentile
33nd
Based on 1 926 companies
33nd percentile
8.4
Low
0 — 7.9
Typical Range
7.9 — 19.5
High
19.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 7.9
Median 11.9
70th Percentile 19.5
Max 22 577.3

Ero Copper Corp
Glance View

Ero Copper Corp. is a Canadian mining company that digs deep into the rich, red earth of Brazil, focusing its efforts on copper, gold, and silver production. The company's operational heart beats in the lush landscapes of the Curaçá Valley, where its cornerstone asset, the MCSA Mining Complex, is located. This area is renowned for its high-grade copper deposits and Ero Copper harnesses advanced mining techniques to sustainably extract and process copper ore. The production journey starts with the extraction of ore from mines, followed by crushing, grinding, and flotation processes to produce copper concentrate. This is then sold to smelters and refiners who further process it into pure copper, a commodity in high demand for electrical equipment, construction, and renewable energy systems. Ero Copper's business strategy revolves around maximizing the value of their mineral-rich assets, adopting technologies to enhance their extraction and processing efficiency, and expanding their mineral resource base. By reinvesting in exploration and drilling programs, the company continually extends the life of its mines, thus ensuring a steady flow of output. Aside from their copper operations, Ero Copper also cultivates potential revenue streams from the byproducts of its primary production, like gold and silver, which are integral to electronics and jewelry industries. By honing in on efficient operations, robust safety practices, and sustainability measures, Ero Copper solidifies its place in the global market as a significant copper producer, riding the wave of green energy demand where copper plays an essential role.

ERO Intrinsic Value
48.08 CAD
Undervaluation 21%
Intrinsic Value
Price CA$37.86
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