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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 $23.40. Freeport-McMoRan Inc's E10 for the quarter that ended in Sep. 2014 was $-0.08. Freeport-McMoRan Inc's Shiller P/E Ratio for today is .

FCX' s 10-Year Shiller P/E Ratio Range
Min: 4.01   Max: 1310.5
Current: 0

4.01
1310.5

During the past 13 years, Freeport-McMoRan Inc's highest Shiller P/E Ratio was 1310.50. The lowest was 4.01. And the median was 55.56.

FCX's Shiller P/E Ratiois ranked higher than
91% of the 2662 Companies
in the Global Copper industry.

( Industry Median: 9999.00 vs. FCX: 0.00 )

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. 2014 was $0.524. 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 $-0.08 for the trailing six years ended in Sep. 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
=23.40/-0.08
=

* 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 Sep. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2014*CPI of Current
=0.53/238.031*235.51
=0.524

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

Current CPI = 235.51.

Freeport-McMoRan Inc Quarterly Data

201206201209201212201303201306201309201312201403201406201409
per share eps 0.7400.8600.7760.6800.4900.7900.6770.4900.4600.530
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.7590.8750.7960.6880.4940.7950.6840.4880.4550.524
200912201003201006201009201012201103201106201109201112201203
per share eps 0.8201.0000.7001.2401.6221.5701.4301.1000.6700.800
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.8941.0820.7561.3371.7431.6551.4921.1420.6990.821
200812200903200906200909
per share eps -18.3810.0550.6901.035
CPI 210.228212.709215.693215.969
Adj_EPS -20.5910.0610.7531.129

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 53.6839.0522.9327.593.029.73291.8564.5470.72159.26

Freeport-McMoRan Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ShillerPE 61.7773.0270.7279.79109.47157.88159.26418.550.000.00
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