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Freeport-McMoRan Inc  (NYSE:FCX) E10: $-1.52 (As of Sep. 2017)

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. 2017 was $0.190. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-1.52 for the trailing ten years ended in Sep. 2017.

As of today, Freeport-McMoRan Inc's current stock price is $13.86. Freeport-McMoRan Inc's E10 for the quarter that ended in Sep. 2017 was $-1.52. Freeport-McMoRan Inc's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of Freeport-McMoRan Inc was 748.86. The lowest was 0.00. And the median was 36.84.


Historical Data

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

* Premium members only.

Freeport-McMoRan Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.94 1.16 0.98 -0.42 -1.15

Freeport-McMoRan Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.06 -1.15 -1.27 -1.42 -1.52

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.19/246.819*246.819
=0.190

Current CPI (Sep. 2017) = 246.819.

Freeport-McMoRan Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.460 210.036 0.541
200803 1.320 213.528 1.526
200806 1.125 218.815 1.269
200809 0.655 218.783 0.739
200812 -18.250 210.228 -21.426
200903 0.055 212.709 0.064
200906 0.690 215.693 0.790
200909 1.035 215.969 1.183
200912 -0.385 215.949 -0.440
201003 1.000 217.631 1.134
201006 0.700 217.965 0.793
201009 1.240 218.439 1.401
201012 1.630 219.179 1.836
201103 1.570 223.467 1.734
201106 1.430 225.722 1.564
201109 1.100 226.889 1.197
201112 0.670 225.672 0.733
201203 0.800 229.392 0.861
201206 0.740 229.478 0.796
201209 0.860 231.407 0.917
201212 0.780 229.601 0.838
201303 0.680 232.773 0.721
201306 0.490 233.504 0.518
201309 0.790 234.149 0.833
201312 0.680 233.049 0.720
201403 0.490 236.293 0.512
201406 0.460 238.343 0.476
201409 0.530 238.031 0.550
201412 -2.740 234.812 -2.880
201503 -2.380 236.119 -2.488
201506 -1.780 238.638 -1.841
201509 -3.580 237.945 -3.714
201512 -3.540 236.525 -3.694
201603 -3.350 238.132 -3.472
201606 -0.380 241.018 -0.389
201609 0.160 241.428 0.164
201612 0.290 241.432 0.296
201703 0.157 243.801 0.159
201706 0.180 244.955 0.181
201709 0.190 246.819 0.190

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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 of today is calculated as

Shiller PE Ratio=Share Price/E10
=13.86/-1.52
=

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

During the past 13 years, the highest Shiller P/E Ratio of Freeport-McMoRan Inc was 748.86. The lowest was 0.00. And the median was 36.84.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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