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GuruFocus has detected 3 Warning Signs with Freeport-McMoRan Inc $FCX.
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Freeport-McMoRan Inc (NYSE:FCX)
Shiller PE Ratio
(As of Today)

As of today, Freeport-McMoRan Inc's current share price is $11.90. Freeport-McMoRan Inc's E10 for the quarter that ended in Mar. 2017 was $-1.27. 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 6.12. And the median was 35.81.

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 Mar. 2017 was $0.157. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $-1.27 for the trailing ten years ended in Mar. 2017.


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
=11.90/-1.27
=

* 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 fiscal year that ended in Dec16 is calculated as:

For example, Freeport-McMoRan Inc's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=0.157/243.985*243.985
=0.157

Current CPI (Mar. 2017) = 243.985.

Freeport-McMoRan Inc Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps -2.740-2.380-1.780-3.580-3.540-3.345-0.3800.1600.2900.157
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS -2.847-2.459-1.820-3.671-3.652-3.427-0.3850.1620.2930.157
201206201209201212201303201306201309201312201403201406201409
per share eps 0.7400.8600.7800.6800.4900.7900.6800.4900.4600.530
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.7870.9070.8290.7130.5120.8230.7120.5060.4710.543
200912201003201006201009201012201103201106201109201112201203
per share eps -0.3851.0000.7001.2401.6301.5701.4301.1000.6700.800
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS -0.4351.1210.7841.3851.8141.7141.5461.1830.7240.851
200706200709200712200803200806200809200812200903200906200909
per share eps 1.3100.9350.4601.3201.1250.655-18.2500.0550.6901.035
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 1.5341.0940.5341.5081.2540.730-21.1800.0630.7811.169

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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 41.010.000.00281.3155.3536.3232.7123.720.000.00

Freeport-McMoRan Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 23.7226.5538.27133.760.000.000.000.000.000.00
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