InvestorsObserver gives Freeport-McMoRan Inc (FCX) a weak valuation score of 33 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. FCX currently holds a better value than 33% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
FCX gets a 33 Valuation Rank today. Find out what this means to you and get the rest of the rankings on FCX!
FCX has a trailing twelve month Price to Earnings (PE) ratio of 8.6. The historical average of roughly 15 shows a good value for FCX stock as investors are paying lower share prices relative to the company's earnings. FCX's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 3.29 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
FCX's 12-month-forward PE to Growth (PEG) ratio of 0.38 is considered a good value as the market is undervaluing FCX in relation to the company's projected earnings growth. FCX's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
