• If you are wondering whether Nexa Resources at around US$12.49 still offers value after its recent run, this article will walk through what the current share price really implies.
• The stock has returned 2.7% over the last 7 days, 42.1% year to date, and 138.3% over the past year, with a 1.3% decline over 30 days and a 108.7% return across 3 years that sits alongside a 32.5% return over 5 years.
• Recent attention on Nexa Resources has focused on how its share price performance lines up with its fundamentals and sector sentiment, with investors weighing whether the move to its current level is justified by the underlying business. This context is important because it shapes whether the current valuation looks stretched, reasonable, or still potentially attractive.
• On Simply Wall St's 6 point valuation checklist, Nexa Resources currently scores 4 out of 6. This suggests several checks flag the stock as undervalued. Next we will break that down across different valuation methods before finishing with a way to look at value that goes beyond the usual ratios.

Approach 1: Nexa Resources Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s value to estimate what the business might be worth per share.

For Nexa Resources, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest reported free cash flow is around $29.6 million. Analyst inputs extend out to 2030, with Simply Wall St extrapolating further years. Within this, projected free cash flow for 2030 is $168 million, with intermediate annual projections between 2026 and 2035 ranging from about $143 million to $283 million once you look at the raw (undiscounted) figures.

When all those future cash flows are discounted back using this model, the estimated intrinsic value comes out at about $14.74 per share. Against a current share price of roughly $12.49, the model implies Nexa Resources trades at a 15.2% discount. On this DCF view, the shares currently appear undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Nexa Resources is undervalued by 15.2%. Track this in your watchlist or portfolio, or discover 47 more high quality undervalued stocks.

Approach 2: Nexa Resources Price vs Earnings (P/E)

For a profitable business like Nexa Resources, the P/E ratio is a straightforward way to think about value because it links what you pay today to the earnings the company is already generating.

What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk usually points to a lower P/E.

Nexa Resources currently trades on a P/E of 12.47x. That sits below the Metals and Mining industry average P/E of 23.39x and well below the peer group average of 62.49x. Simply Wall St also calculates a proprietary “Fair Ratio” for Nexa Resources of 18.06x, which is the P/E level suggested after factoring in elements like earnings growth, industry, profit margin, market cap and company specific risks.

This Fair Ratio can be more informative than a simple comparison with industry or peers because it is tailored to Nexa Resources’ own fundamentals and risk profile rather than broad market groupings. With the current P/E of 12.47x sitting below the Fair Ratio of 18.06x, Nexa Resources appears undervalued on this measure.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies.

Upgrade Your Decision Making: Choose your Nexa Resources Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St's Community page you can build or follow "Narratives," which are simple stories that connect your view of Nexa Resources' business to specific forecasts for revenue, earnings and margins. These then link to a Fair Value that you can compare with the current share price to decide whether it looks more like a buy, hold or sell for you. These Narratives keep updating as new news or earnings arrive. For example, one investor might follow a more pessimistic Nexa view with a Fair Value around US$5.00, while another might lean toward a more optimistic outlook closer to US$9.89, all within an easy tool used by millions of investors.

Do you think there's more to the story for Nexa Resources? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.