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

As of today, Freeport-McMoRan Inc's current share price is $10.50. Freeport-McMoRan Inc's E10 for the quarter that ended in Jun. 2015 was $2.10. Freeport-McMoRan Inc's Shiller P/E Ratio for today is 5.00.

FCX' s 10-Year Shiller P/E Ratio Range
Min: 3.74   Max: 1310.5
Current: 4.97

3.74
1310.5

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 1310.50. The lowest was 3.74. And the median was 47.21.

FCX's Shiller P/E Ratiois ranked higher than
87% of the 285 Companies
in the Global Copper industry.

( Industry Median: 16.29 vs. FCX: 4.97 )

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 Jun. 2015 was $-1.780. 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 $2.10 for the trailing six years ended in Jun. 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
=10.50/2.10
=5.00

* 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 Jun. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Jun. 2015*CPI of Current
=-1.78/238.638*238.662
=-1.780

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

Current CPI = 238.662.

Freeport-McMoRan Inc Quarterly Data

201303201306201309201312201403201406201409201412201503201506
per share eps 0.6800.4900.7900.6770.4900.4600.530-2.745-2.380-1.780
CPI 232.773233.504234.149233.049236.293238.343238.031234.812236.119238.638
Adj_EPS 0.6970.5010.8050.6930.4950.4610.531-2.790-2.406-1.780
201009201012201103201106201109201112201203201206201209201212
per share eps 1.2401.6221.5701.4301.1000.6700.8000.7400.8600.776
CPI 218.439219.179223.467225.722226.889225.672229.392229.478231.407229.601
Adj_EPS 1.3551.7661.6771.5121.1570.7090.8320.7700.8870.807
200909200912201003201006
per share eps 1.0350.8201.0000.700
CPI 215.969215.949217.631217.965
Adj_EPS 1.1440.9061.0970.766

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 39.0622.9427.623.029.73296.0864.9771.16165.188.11

Freeport-McMoRan Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ShillerPE 81.25111.84163.09165.18467.700.000.008.117.578.85
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK