Ero Copper Corp (ERO) is undervalued and Teck Resources Ltd (TECK) is undervalued.
Against our estimates of intrinsic value, TECK trades at the wider discount: a margin of safety of +53%, 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 9.5% (average of 3 methods) values the shares at $127.71; the price of $60.61 is 53% below that value, and 76% of that value comes from beyond year five.
Leak Score 51/100 on 11 of 12 signals
| Metric | ERO | TECK |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $29.05 | $60.61 |
| Intrinsic value | $40.78 | $127.71 |
| Margin of safety | +29% | +53% |
| Leak Score | 58/100 (11/12) | 51/100 (11/12) |
| Market cap | $3.0B | $29.7B |
| Revenue growth, 5 years | 19.4% | 2.9% |
| Operating margin | 35.9% | 34.4% |
| Net margin | 29.8% | 25.1% |
| Return on equity | 30.6% | 14.2% |
| Debt to equity | 0.47 | 0.33 |
| P/E | 9.8x | 10.9x |
| Forward P/E | 6.0x | 14.9x |
| P/B | 2.5x | 1.5x |
| Dividend yield | — | 0.7% |