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GuruFocus has detected 2 Warning Signs with Freeport-McMoRan Inc $FCX.
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Freeport-McMoRan Inc (NYSE:FCX)
EV-to-EBIT
-4.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Freeport-McMoRan Inc's enterprise value is $34,068 Mil. Freeport-McMoRan Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-7,399 Mil. Therefore, Freeport-McMoRan Inc's EV/EBIT ratio for today is -4.60.

FCX' s EV-to-EBIT Range Over the Past 10 Years
Min: -13.8   Max: 511.3
Current: -12.36

-13.8
511.3

During the past 13 years, the highest EV/EBIT Ratio of Freeport-McMoRan Inc was 511.30. The lowest was -13.80. And the median was 5.40.

FCX's EV-to-EBIT is ranked lower than
99.99% of the 478 Companies
in the Global Copper industry.

( Industry Median: 20.45 vs. FCX: -12.36 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Freeport-McMoRan Inc's enterprise value for the quarter that ended in Sep. 2016 was $36,999 Mil. Freeport-McMoRan Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-7,399 Mil. Freeport-McMoRan Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was -20.00%.


Definition

Freeport-McMoRan Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=34068.000/-7399
=-4.60

Freeport-McMoRan Inc's current Enterprise Value is $34,068 Mil.
Freeport-McMoRan Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -3969 (Dec. 2015 ) + -3876 (Mar. 2016 ) + 82 (Jun. 2016 ) + 364 (Sep. 2016 ) = $-7,399 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Freeport-McMoRan Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=-7399/36999.32
=-20.00 %

Freeport-McMoRan Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $36,999 Mil.
Freeport-McMoRan Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -3969 (Dec. 2015 ) + -3876 (Mar. 2016 ) + 82 (Jun. 2016 ) + 364 (Sep. 2016 ) = $-7,399 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 7.55-1.636.676.673.996.2010.17521.26-3.07-12.69

Freeport-McMoRan Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 11.48521.26-11.15-6.19-2.74-3.07-2.54-3.19-5.36-12.69
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