Teck Resources (TSX:TECK.B) has drawn fresh interest after recent share price moves, with the stock last closing at CA$68.99. For investors, the focus now is how this valuation lines up with current fundamentals.

See our latest analysis for Teck Resources.

Recent trading has been strong, with a 30 day share price return of 14.35% and a 90 day share price return of 17.65%, while the 1 year total shareholder return of 14.70% and 5 year total shareholder return of 196.39% point to momentum that investors are now weighing against Teck Resources’ current valuation.

If Teck Resources is on your radar because of this recent share price strength, it could also be a good time to widen the lens and look at aerospace and defense stocks as a different corner of the market that is getting attention.

With Teck Resources now trading around CA$68.99 and showing strong multi year returns, the key question for you is whether the current price already reflects its prospects or whether the market is leaving a potential buying window open.

Most Popular Narrative: 9.6% Overvalued

At a last close of CA$68.99 versus a narrative fair value of about CA$62.94, the market price sits above the modelled estimate, which is built around copper heavy growth plans and a higher forward earnings multiple.

The fair value estimate has risen slightly to about CA$62.94 from roughly CA$62.39, reflecting modestly stronger long term assumptions. The future P/E has risen slightly to around 30.8x from about 30.5x, which implies a modestly higher valuation multiple on forward earnings.

Read the complete narrative.

Curious what kind of revenue path and profit margins are needed to support that richer multiple, plus a higher discount rate, and still reach this fair value? The full narrative spells out the earnings bridge year by year, including how copper exposure and long term price assumptions link into that 30x style valuation.

Result: Fair Value of $62.94 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, you still need to watch for project delays that push out copper growth and for any weakness in copper or zinc prices that could hit revenue and margins.

Find out about the key risks to this Teck Resources narrative.

Build Your Own Teck Resources Narrative

If you see the assumptions differently or prefer to test the numbers yourself, you can rebuild the case in a few quick steps: Do it your way.

A great starting point for your Teck Resources research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Teck Resources has sharpened your interest, do not stop there. Use the Simply Wall St Screener to line up fresh ideas that match your style.

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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.

Companies discussed in this article include TECK-B.TO.

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