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GuruFocus has detected 3 Warning Signs with Freeport-McMoRan Inc $FCX.
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Freeport-McMoRan Inc (NYSE:FCX)
EV-to-EBITDA
8.08 (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 $31,515 Mil. Freeport-McMoRan Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $3,901 Mil. Therefore, Freeport-McMoRan Inc's EV/EBITDA ratio for today is 8.08.

FCX' s EV-to-EBITDA Range Over the Past 10 Years
Min: -174.3   Max: 13.9
Current: 8.08

-174.3
13.9

During the past 13 years, the highest EV/EBITDA Ratio of Freeport-McMoRan Inc was 13.90. The lowest was -174.30. And the median was 4.80.

FCX's EV-to-EBITDA is ranked lower than
99.99% of the 971 Companies
in the Global Copper industry.

( Industry Median: 10.14 vs. FCX: 8.08 )

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 $11.67. Freeport-McMoRan Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $0.23. Therefore, Freeport-McMoRan Inc's P/E Ratio for today is 51.41.

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)
=31515.306/3901
=8.08

Freeport-McMoRan Inc's current Enterprise Value is $31,515 Mil.
Freeport-McMoRan Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 734 (Jun. 2016 ) + 1007 (Sep. 2016 ) + 1191 (Dec. 2016 ) + 969 (Mar. 2017 ) = $3,901 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=11.67/0.227
=51.41

Freeport-McMoRan Inc's share price for today is $11.67.
Freeport-McMoRan Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was -0.38 (Jun. 2016 ) + 0.16 (Sep. 2016 ) + 0.29 (Dec. 2016 ) + 0.157 (Mar. 2017 ) = $0.23.

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

Freeport-McMoRan Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.27-1.925.675.983.595.157.6313.14-3.29-156.18

Freeport-McMoRan Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 13.14-81.55-10.50-3.80-3.29-3.40-4.29-7.83-156.188.70
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