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

As of today, Freeport-McMoRan Inc's current share price is $38.55. Freeport-McMoRan Inc's E10 for the quarter that ended in Mar. 2014 was $0.07. Freeport-McMoRan Inc's Shiller P/E Ratio for today is 515.80.

FCX' s 10-Year Shiller P/E Ratio Range
Min: 3.99   Max: 1310.5
Current: 515.8

3.99
1310.5

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 1310.50. The lowest was 3.99. And the median was 55.42.

FCX's Shiller P/E Ratiois ranked higher than
92% of the 2632 Companies
in the Global Copper industry.

( Industry Median: 9999.00 vs. FCX: 515.80 )

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. 2014 was $0.497. 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 $0.07 for the trailing six years ended in Mar. 2014.


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
=38.55/0.07
=550.71

* 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 Dec13 is calculated as:

For example, Freeport-McMoRan Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=0.49/236.293*239.556
=0.497

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.556.

Freeport-McMoRan Inc Quarterly Data

201112201203201206201209201212201303201306201309201312201403
per share eps 0.6700.8000.7400.8600.7760.6800.4900.7900.6770.490
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.7110.8350.7720.8900.8100.7000.5030.8080.6960.497
200906200909200912201003201006201009201012201103201106201109
per share eps 0.6901.0350.8201.0000.7001.2401.6221.5701.4301.100
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 0.7661.1480.9101.1010.7691.3601.7731.6831.5181.161
200806200809200812200903
per share eps 1.1250.655-18.3810.055
CPI 218.815218.783210.228212.709
Adj_EPS 1.2320.717-20.9450.062

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 53.6539.0122.9327.613.029.73295.1364.7770.70162.36

Freeport-McMoRan Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ShillerPE 64.7764.0461.6373.5470.7080.63111.14159.93162.36442.40
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