Current Price
$68.41
PE Ratio (TTM)
36.1x
Intrinsic Value
$96.25
+28.9% margin of safety
What Is Freeport-McMoRan Inc.'s Fair Value?
As of 2026-06-12, applying a 36.0x earnings multiple to Freeport-McMoRan Inc.'s (FCX) earnings per share of $1.89 yields a fair value estimate of $96.25 per share, versus a market price of $68.41.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $81.99 to $112.28. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · FCX intrinsic value (DCF view)
Is Freeport-McMoRan Inc. (FCX) Overvalued?
At $68.41, FCX trades about 28.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
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 PE valuation
Intrinsic Value
$96.25
Margin of safety
+28.9%
Expected annual return
+7.1%
Base case assumptions: 15.1% annual earnings growth, 36x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FCX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Freeport-McMoRan Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
36.1x
PEG Ratio
0.65
Earnings Yield
2.77%
ROE (TTM)
14.5%
Revenue/Share (TTM)
$18.30
Dividend Yield
0.88%
Debt/Equity
0.53x
Frequently Asked Questions
What is the PE ratio of FCX?
The trailing twelve-month PE ratio of FCX reflects how much investors pay per dollar of Freeport-McMoRan Inc.'s earnings. This metric is most useful when compared to Copper peers and the company's own historical range.
Is FCX overvalued based on PE ratio?
FCX's PE of 36.1x combined with a PEG ratio of 0.65 provides a growth-adjusted perspective. A PEG below 1.0 suggests FCX may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Copper, a DCF analysis may be more appropriate.
How do I value FCX stock using PE ratio?
To value Freeport-McMoRan Inc. using PE: (1) Compare the current PE (36.1x) against the Copper median to assess relative pricing, (2) check the PEG ratio (0.65) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FCX?
FCX's PEG ratio is 0.65, calculated by dividing the PE ratio (36.1x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FCX stock valuation?
PE ratio gives a quick relative read — how FCX is priced versus Copper peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FCX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value FCX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.