Ero Copper Corp (ERO) is undervalued and Hudbay Minerals Inc (HBM) is undervalued.
Against our estimates of intrinsic value, HBM trades at the wider discount: a margin of safety of +40%, against +29% for ERO.
Values as of the 30 Oct 2026 close.
Discounting its cash flows at 11.0% (average of 3 methods) values the shares at $40.78; the price of $29.05 is 29% below that value, and 70% of that value comes from beyond year five.
Leak Score 58/100 on 11 of 12 signals
Discounting its cash flows at 11.4% (average of 3 methods) values the shares at $35.90; the price of $21.70 is 40% below that value, and 69% of that value comes from beyond year five.
Leak Score 65/100 on 12 of 12 signals
| Metric | ERO | HBM |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $29.05 | $21.70 |
| Intrinsic value | $40.78 | $35.90 |
| Margin of safety | +29% | +40% |
| Leak Score | 58/100 (11/12) | 65/100 (12/12) |
| Market cap | $3.0B | $9.6B |
| Revenue growth, 5 years | 19.4% | 14.8% |
| Operating margin | 35.9% | 31.6% |
| Net margin | 29.8% | 27.3% |
| Return on equity | 30.6% | 17.7% |
| Debt to equity | 0.47 | 0.19 |
| P/E | 9.8x | 12.8x |
| Forward P/E | 6.0x | 11.0x |
| P/B | 2.5x | 2.0x |
| Dividend yield | — | 0.1% |