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

As of today, Freeport-McMoRan Inc's current share price is $15.60. Freeport-McMoRan Inc's E10 for the quarter that ended in Sep. 2016 was $-0.41. Freeport-McMoRan Inc's Shiller P/E Ratio for today is .

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 748.86. The lowest was 0.00. And the median was 36.84.

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 of for the fiscal year that ended in Dec15 was $-11.310. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-0.41 for the trailing ten years ended in Dec15.


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
=15.60/-0.41
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Freeport-McMoRan Inc's E10 for the quarter that ended in Sep. 2016 is calculated as:

For example, Freeport-McMoRan Inc's adjusted earnings per share data for the fiscal year that ended in Dec15 was:

Adj_EPS=Earnigns per Share/CPI of Dec15 (Change)*Current CPI (Dec15)
=-11.31/236.525*236.525
=-11.310

Current CPI (Dec15) = 236.525.

Freeport-McMoRan Inc Annual Data

200612200712200812200912201012201112201212201312201412201512
per share eps 3.3153.750-14.91.4654.5704.7803.1902.640-1.3-11.3
CPI 201.800210.036210.228215.949219.179225.672229.601233.049234.812236.525
Adj_EPS 3.8854.223-16.7191.6054.9325.0103.2862.679-1.269-11.310

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 local exchange's currency.

Freeport-McMoRan Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 30.8741.010.000.00281.6455.3636.3232.7123.720.00

Freeport-McMoRan Inc Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 27.8924.3123.7226.5538.25133.410.000.000.000.00
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