Freeport Stock Valuation

FCX
 Stock
  

USD 30.45  0.78  2.50%   

Do you wonder what the value of Freeport-Mcmoran is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Freeport Mcmoran, is its stock price multiplied by the total number of shares outstanding, calculating Freeport Mcmoran's enterprise value requires a different approach. It uses Freeport Mcmoran's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Freeport Mcmoran Free Cash Flow is fairly stable at the moment as compared to the past year. Freeport Mcmoran reported Free Cash Flow of 5.93 Billion in 2021. Tangible Asset Value is likely to rise to about 50.6 B in 2022, whereas Enterprise Value is likely to drop slightly above 55.7 B in 2022.
Freeport-Mcmoran shows a prevailing Real Value of $35.25 per share. The current price of the firm is $30.45. At this time, the firm appears to be undervalued. Our model computes the value of Freeport-Mcmoran from reviewing the firm fundamentals such as Profit Margin of 20.08 %, shares outstanding of 1.47 B, and Current Valuation of 56.73 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Freeport Mcmoran Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Freeport Mcmoran's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 30.45
Please note that Freeport Mcmoran's price fluctuation is very steady at this time. Calculation of the real value of Freeport-Mcmoran is based on 3 months time horizon. Increasing Freeport Mcmoran's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Freeport-Mcmoran is useful when determining the fair value of the Freeport stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Freeport Mcmoran. Since Freeport Mcmoran is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Freeport Stock. However, Freeport Mcmoran's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
35.25
Real Value
38.75
Upside
Estimating the potential upside or downside of Freeport-Mcmoran helps investors to forecast how Freeport stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Freeport Mcmoran more accurately as focusing exclusively on Freeport Mcmoran's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
3.023.143.24
Details
Hype
Prediction
LowEstimated ValueHigh
26.8630.3633.86
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.220.220.23
Details
12 Analysts
Consensus
LowTarget PriceHigh
21.0041.4650.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Freeport Mcmoran's intrinsic value based on its ongoing forecasts of Freeport Mcmoran's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Freeport Mcmoran's closest peers. When choosing an evaluation method for Freeport-Mcmoran, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Freeport Valuation Drivers Correlation

Many accounts on the financial statements of Freeport-Mcmoran are highly interrelated and sometimes correlated. Consequently, when conducting Freeport's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Freeport
Click cells to compare fundamentals

Freeport Valuation Trend

Knowing Freeport Mcmoran's actual value is paramount for traders to make sound investment determinations. Freeport Mcmoran's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Freeport Mcmoran's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Freeport Mcmoran's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Freeport Market Cap

Freeport-Mcmoran is one of the top stocks in market capitalization category among related companies. Market capitalization of Copper industry is currently estimated at about 996.48 Billion. Freeport Mcmoran holds roughly 46.43 Billion in market capitalization claiming about 5% of stocks in Copper industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Freeport Mcmoran Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Freeport Mcmoran's current stock value. Our valuation model uses many indicators to compare Freeport Mcmoran value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Freeport Mcmoran competition to find correlations between indicators driving Freeport Mcmoran's intrinsic value. More Info.
Freeport-Mcmoran is one of the top stocks in beta category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  1.67  of Price to Book per Beta. Price to Book Value is likely to drop to 3.70 in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Freeport Mcmoran by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Freeport Mcmoran's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Freeport Mcmoran's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Freeport Mcmoran's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Freeport Mcmoran and how it compares across the competition.

About Freeport Mcmoran Valuation

The stock valuation mechanism determines the current worth of Freeport-Mcmoran on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Freeport-Mcmoran. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Freeport-Mcmoran based exclusively on its fundamental and basic technical indicators. By analyzing Freeport Mcmoran's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Freeport Mcmoran's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Freeport Mcmoran. We calculate exposure to Freeport Mcmoran's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Freeport Mcmoran's related companies.
Last ReportedProjected for 2022
Gross Profit8.8 B9.5 B
Profit Margin 0.19  0.20 

Freeport Mcmoran Quarterly Enterprise Value

43.69 Billion

Freeport Mcmoran's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Freeport Mcmoran's value is low or high relative to the company's performance and growth projections. Determining the market value of Freeport Mcmoran can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Freeport Mcmoran represents a small ownership stake in the entity. As a stockholder of Freeport, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Freeport Mcmoran Dividends Analysis For Valuation

Freeport Mcmoran Preferred Dividends Income Statement Impact is fairly stable at the moment as compared to the past year. Freeport Mcmoran reported Preferred Dividends Income Statement Impact of 3.6 Million in 2021. Dividend Yield is likely to rise to 0.005132 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (357.1 M) in 2022. . Freeport Mcmoran Earning Before Interest and Taxes EBIT is fairly stable at the moment as compared to the past year. Freeport Mcmoran reported Earning Before Interest and Taxes EBIT of 7.21 Billion in 2021. Earnings per Basic Share is likely to rise to 3.16 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop (8 B) in 2022.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact3.6 M3.7 M
Payment of Dividends and Other Cash Distributions-331 M-357.1 M
Dividend Yield 0.005  0.005132 
Dividends per Basic Common Share 0.23  0.23 
There are various types of dividends Freeport Mcmoran can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Freeport shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Freeport-Mcmoran directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Freeport pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Freeport Mcmoran by the value of the dividends paid out.

Freeport Mcmoran Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Freeport Mcmoran does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.84
Earnings Quarterly Growth-22.40%
Revenue Growth-5.80%
Payout Ratio13.64%
Enterprise Value To Ebitda4.94
Earnings Growth-21.80%
Enterprise Value To Revenue2.34

Freeport Mcmoran Current Valuation Indicators

Valuation refers to the process of determining the present value of Freeport-Mcmoran and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Freeport we look at many different elements of the entity such as Freeport's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Freeport Mcmoran's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Freeport Mcmoran's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Freeport Mcmoran, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Freeport Mcmoran's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Freeport Mcmoran's worth.
Please check Investing Opportunities. Note that the Freeport-Mcmoran information on this page should be used as a complementary analysis to other Freeport Mcmoran's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running Freeport-Mcmoran price analysis, check to measure Freeport Mcmoran's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Freeport Mcmoran is operating at the current time. Most of Freeport Mcmoran's value examination focuses on studying past and present price action to predict the probability of Freeport Mcmoran's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Freeport Mcmoran's price. Additionally, you may evaluate how the addition of Freeport Mcmoran to your portfolios can decrease your overall portfolio volatility.
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Is Freeport Mcmoran's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freeport Mcmoran. If investors know Freeport will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freeport Mcmoran listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Freeport-Mcmoran is measured differently than its book value, which is the value of Freeport that is recorded on the company's balance sheet. Investors also form their own opinion of Freeport Mcmoran's value that differs from its market value or its book value, called intrinsic value, which is Freeport Mcmoran's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freeport Mcmoran's market value can be influenced by many factors that don't directly affect Freeport Mcmoran's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Freeport Mcmoran's value and its price as these two are different measures arrived at by different means. Investors typically determine Freeport Mcmoran value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freeport Mcmoran's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.