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Freeport-McMoRan Inc (NYSE:FCX)
Shiller P/E Ratio
7.13 (As of Today)

As of today, Freeport-McMoRan Inc's current share price is $17.83. Freeport-McMoRan Inc's E10 for the quarter that ended in Mar. 2015 was $2.50. Freeport-McMoRan Inc's Shiller P/E Ratio for today is 7.13.

FCX' s 10-Year Shiller P/E Ratio Range
Min: 3.99   Max: 1747.33
Current: 7.12

3.99
1747.33

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 1747.33. The lowest was 3.99. And the median was 49.29.

FCX's Shiller P/E Ratiois ranked higher than
79% of the 280 Companies
in the Global Copper industry.

( Industry Median: 17.32 vs. FCX: 7.12 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Freeport-McMoRan Inc's adjusted earnings per share data for the three months ended in Mar. 2015 was $-2.388. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $2.50 for the trailing six years ended in Mar. 2015.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Freeport-McMoRan Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=17.83/2.50
=7.13

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Freeport-McMoRan Inc's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Freeport-McMoRan Inc's adjusted earnings per share data for the three months ended in Mar. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2015*CPI of Current
=-2.38/236.119*236.959
=-2.388

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.959.

Freeport-McMoRan Inc Quarterly Data

201212201303201306201309201312201403201406201409201412201503
per share eps 0.7760.6800.4900.7900.6770.4900.4600.530-2.745-2.380
CPI 229.601232.773233.504234.149233.049236.293238.343238.031234.812236.119
Adj_EPS 0.8010.6920.4970.7990.6880.4910.4570.528-2.770-2.388
201006201009201012201103201106201109201112201203201206201209
per share eps 0.7001.2401.6221.5701.4301.1000.6700.8000.7400.860
CPI 217.965218.439219.179223.467225.722226.889225.672229.392229.478231.407
Adj_EPS 0.7611.3451.7541.6651.5011.1490.7040.8260.7640.881
200906200909200912201003
per share eps 0.6901.0350.8201.000
CPI 215.693215.969215.949217.631
Adj_EPS 0.7581.1360.9001.089

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Freeport-McMoRan Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 38.8222.8027.673.029.73306.0165.6271.88168.058.11

Freeport-McMoRan Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ShillerPE 71.8881.93113.52166.23168.05497.040.000.008.117.57
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