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

As of today, Freeport-McMoRan Inc's current share price is $5.53. Freeport-McMoRan Inc's E10 for the quarter that ended in Sep. 2015 was $0.11. Freeport-McMoRan Inc's Shiller P/E Ratio for today is 50.27.

FCX' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 6.16   Max: 746.2
Current: 48.79

6.16
746.2

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 746.20. The lowest was 6.16. And the median was 36.25.

FCX's Shiller P/E Ratio is ranked lower than
78% of the 253 Companies
in the Global Copper industry.

( Industry Median: 13.77 vs. FCX: 48.79 )

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 Sep. 2015 was $-3.580. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $0.11 for the trailing ten years ended in Sep. 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
=5.53/0.11
=50.27

* 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 Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=-3.58/237.945*237.945
=-3.580

Current CPI (Sep. 2015) = 237.945.

Freeport-McMoRan Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 0.7900.6800.4900.4600.530-2.730-2.380-1.780-3.580-3.470
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 0.8030.6940.4930.4590.530-2.766-2.398-1.775-3.580-3.491
201103201106201109201112201203201206201209201212201303201306
per share eps 1.5701.4301.1000.6800.8000.7400.8600.7800.6800.490
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 1.6721.5071.1540.7170.8300.7670.8840.8080.6950.499
200809200812200903200906200909200912201003201006201009201012
per share eps 0.655-17.9600.0550.6901.035-0.3851.0000.7001.2401.630
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 0.712-20.3280.0620.7611.140-0.4241.0930.7641.3511.770
200603200606200609200612200703200706200709200712200803200806
per share eps 0.6150.8700.8350.9951.0101.3100.9350.4601.3201.125
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 0.7321.0200.9791.1731.1701.4961.0670.5211.4711.223

Add all the adjusted EPS together and divide 10 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 31.0740.900.000.00244.5352.7635.0731.5422.680.00

Freeport-McMoRan Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 29.3331.5426.1727.2123.5222.6825.3035.6085.480.00
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