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Freeport-McMoRan Inc (NYSE:FCX)
EV/EBITDA
5.94 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Freeport-McMoRan Inc's enterprise value is $56,612 Mil. Freeport-McMoRan Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $9,538 Mil. Therefore, Freeport-McMoRan Inc's EV/EBITDA ratio for today is 5.94.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Freeport-McMoRan Inc's stock price is $32.48. Freeport-McMoRan Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.42. Therefore, Freeport-McMoRan Inc's P/E Ratio for today is 13.40.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=56611.600/9538
=5.94

Freeport-McMoRan Inc's current Enterprise Value is $56,612 Mil.
Freeport-McMoRan Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 2626 (Sep. 2013 ) + 2669 (Dec. 2013 ) + 2077 (Mar. 2014 ) + 2166 (Jun. 2014 ) = $9,538 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Freeport-McMoRan Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=32.48/2.417
=13.44

Freeport-McMoRan Inc's share price for today is $32.48.
Freeport-McMoRan Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.79 (Sep. 2013 ) + 0.677 (Dec. 2013 ) + 0.49 (Mar. 2014 ) + 0.46 (Jun. 2014 ) = $2.42.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 10.184.823.886.250.005.675.983.605.157.63

Freeport-McMoRan Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 4.504.555.945.155.378.108.017.636.816.40
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