Copper · NYSE
Current Price
$56.92
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Freeport-McMoRan Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.
ROIC (TTM)
9.1%
ROE (TTM)
14.5%
FCF Yield
7.64%
Based on trailing twelve-month data, FCX shows a free cash flow per share of N/A and a ROIC of 9.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.64% are important context metrics when evaluating FCX's stock valuation relative to peers.
The intrinsic value of FCX depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether FCX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $56.92. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Freeport-McMoRan Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Copper industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FCX's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Freeport-McMoRan Inc., this means projecting how much free cash flow the Copper will produce over the next 5-10 years, then discounting those amounts to today's dollars. FCX's ROIC of 9.1% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FCX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
