Enterprise Value to EBITDA (EV/EBITDA)
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Freeport-McMoRan Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Freeport-McMoRan Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance indicators demonstrate fluctuations over the five-year period. While net income attributable to common stockholders experienced a decline from 2021 to 2023, it showed signs of recovery in 2024 and 2025. Similarly, earnings at various stages – before tax, interest, and depreciation – exhibited a pattern of initial decrease followed by stabilization and modest growth.
- EBITDA Trend
- Earnings before interest, tax, depreciation, and amortization (EBITDA) began at US$10,264 million in 2021 and decreased to US$8,604 million in 2023. A subsequent increase was observed in 2024, reaching US$9,482 million, followed by a slight decrease to US$8,986 million in 2025. This suggests a period of profitability challenges in 2022 and 2023, with a partial recovery in the subsequent years, though not reaching the initial 2021 level.
- Relationship between Net Income and EBITDA
- A consistent pattern exists where EBITDA values are substantially higher than net income attributable to common stockholders across all reported years. This difference is attributable to the deduction of interest, taxes, depreciation, and amortization from EBITDA to arrive at net income. The magnitude of this difference remained relatively stable throughout the period, indicating consistent cost structures related to these deductions.
- EBIT and EBT Comparison
- The difference between earnings before interest and tax (EBIT) and earnings before tax (EBT) is consistently related to interest expense. The values are very close, indicating that interest expense is a relatively small component of the overall earnings structure. Both EBIT and EBT followed a similar trend, decreasing from 2021 to 2023 and then increasing in 2024 and 2025.
Overall, the period examined reveals a cyclical pattern in financial performance. The company experienced a downturn in profitability in 2022 and 2023, as reflected in declining EBITDA and net income. However, the figures suggest a stabilization and partial recovery in 2024 and 2025, although performance did not fully return to 2021 levels.
Enterprise Value to EBITDA Ratio, Current
Freeport-McMoRan Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2025-12-31).
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Freeport-McMoRan Inc., historical EV/EBITDA calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The Enterprise Value to EBITDA ratio exhibited fluctuating behavior over the five-year period. Initial values decreased, followed by an increase in the most recent year presented.
- Enterprise Value to EBITDA Trend
- The ratio began at 7.20 in 2021, increasing to 7.74 in 2022. A further increase was observed in 2023, reaching 8.11. The ratio then decreased slightly to 7.60 in 2024 before rising substantially to 11.96 in 2025.
Enterprise Value demonstrated an initial decline from 73,951 in 2021 to 69,771 in 2023, followed by increases to 72,055 in 2024 and a significant jump to 107,506 in 2025. EBITDA experienced a decrease from 10,264 in 2021 to 8,604 in 2023, with subsequent increases to 9,482 in 2024 and a slight decrease to 8,986 in 2025.
- Enterprise Value
- The most significant change in Enterprise Value occurred between 2024 and 2025, with an increase of 35,451 US$ millions. Prior to this, fluctuations were relatively modest.
- EBITDA
- EBITDA showed a consistent decline between 2021 and 2023, representing a reduction of 1,660 US$ millions. While EBITDA increased in 2024, it decreased slightly in 2025, indicating potential stabilization at a lower level.
The substantial increase in the EV/EBITDA ratio in 2025 is primarily attributable to the significant rise in Enterprise Value, coupled with a relatively modest change in EBITDA. This suggests a potentially increased valuation relative to the company’s operating performance in that year.