Freeport-McMoRan Inc. (FCX) Intrinsic Value & DCF Valuation
Copper · NYSE
Current Price
$68.41
Intrinsic Value
$112.41
+39.1% margin of safety
What Is Freeport-McMoRan Inc.'s Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of Freeport-McMoRan Inc. (FCX) at $112.41 per share, compared with a market price of $68.41, a margin of safety of +39.1%. The base case assumes 15.2% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $88.75 to $139.5. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Freeport-McMoRan Inc. (FCX) Undervalued?
At the current price of $68.41, FCX trades well below our base-case intrinsic value estimate, a margin of safety above 30%. By this model the stock looks undervalued, but verify the growth assumptions match your own view before acting.
COMPETITIVE MOAT
↑Strategic Asset Portfolio
FCX possesses world-class copper and gold reserves, particularly its large, long-lived Grasberg mine. This provides a significant competitive advantage through scale and resource quality.
↑AI Data Center Demand Tailwinds
The burgeoning AI data center boom is driving substantial demand for copper. FCX is well-positioned to capitalize on this secular trend, boosting its market position.
↑Operational Expertise
Decades of experience in complex mining operations, especially in challenging environments, allow FCX to extract value efficiently. This expertise is difficult for new entrants to replicate.
INVESTMENT RISKS
↓Rising Production Costs
FCX faces increasing Q2 copper production costs due to energy and volume pressures. This can erode profit margins if not effectively managed or passed on to customers.
↓Commodity Price Volatility
Copper prices are inherently volatile, influenced by global economic conditions and supply/demand dynamics. Significant price drops can severely impact FCX's revenue and profitability.
↓Geopolitical and Regulatory Uncertainty
Operating in various global jurisdictions exposes FCX to potential political instability and changing regulatory environments. These factors can disrupt operations and impact costs.
Base case
FCX base case valuation
Intrinsic Value
$112.41
Margin of safety
+39.1%
Expected annual return
+10.4%
Base case assumptions: 15.2% annual growth, 10.0% discount rate, 16x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FCX valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Freeport-McMoRan Inc. respond.
Open DCF Calculator for FCXCompany Overview
Freeport-McMoRan Inc. is a prominent mining enterprise conducting extensive operations across North America, South America, and Indonesia. The company primarily focuses on the exploration and extraction of key mineral resources such as copper, gold, molybdenum, and silver, alongside other valuable metals. Additionally, it maintains a significant presence in the oil and gas sector. Its diverse portfolio of assets features the notable Grasberg minerals district in Indonesia; numerous sites in the United States including Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado. In South America, its holdings include Cerro Verde in Peru and El Abra in Chile. Beyond its mineral interests, Freeport-McMoRan operates a collection of oil and gas properties, predominantly situated off the coasts of California and in the Gulf of Mexico, managing approximately 135 wells as of December 31, 2021. Founded in 1987 and headquartered in Phoenix, Arizona, the company adopted its current name, Freeport-McMoRan Inc., in July 2014, having previously operated as Freeport-McMoRan Copper & Gold Inc.
Financial Metrics — FCX Stock Valuation Data
Revenue/Share (TTM)
$18.30
FCF/Share (TTM)
$4.33
ROIC (TTM)
9.1%
ROE (TTM)
14.5%
P/FCF
15.7x
EV/EBITDA
10.9x
FCF Yield
6.35%
Debt/Equity
0.53x
Based on trailing twelve-month data, FCX shows a free cash flow per share of $4.33 and a ROIC of 9.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 15.7x and FCF yield of 6.35% are important context metrics when evaluating FCX's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of FCX?
Freeport-McMoRan Inc. currently generates $4.33 in free cash flow per share. At the current price of $68.41, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is FCX undervalued?
FCX trades at a P/FCF ratio of 15.7x with a free cash flow yield of 6.35%. This P/FCF is in a moderate range. However, whether FCX is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value FCX stock using DCF?
To perform a DCF valuation on Freeport-McMoRan Inc.: (1) Start with the trailing free cash flow per share ($4.33) 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 — with a debt-to-equity of 0.53x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to FCX?
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 company will produce over the next 5-10 years, shaped by Copper trends, then discounting those amounts to today's dollars. FCX's ROIC of 9.1% shows moderate capital returns.
How does WACC affect FCX stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FCX, with a debt-to-equity ratio of 0.53x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.9x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See FCX PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value FCX with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.