Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Freeport-McMoRan Inc., FCFE 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).
Net cash provided by operating activities exhibited volatility over the observed period. Beginning at US$7,715 million in 2021, it decreased significantly to US$5,139 million in 2022. A modest recovery to US$5,279 million occurred in 2023, followed by a substantial increase to US$7,160 million in 2024. The most recent year, 2025, shows a decline to US$5,610 million.
- Free Cash Flow to Equity (FCFE)
- FCFE demonstrates a more pronounced fluctuation. It began at US$5,340 million in 2021, then decreased to US$2,890 million in 2022, mirroring the trend in operating cash flow. A significant shift occurred in 2023, with FCFE becoming negative at -US$744 million. This indicates that the company’s cash outflows to equity holders exceeded cash inflows during that year. A recovery was observed in 2024, with FCFE returning to a positive value of US$1,872 million. This positive trend continued into 2025, although at a slightly reduced level of US$1,534 million.
The divergence between operating cash flow and FCFE, particularly in 2023, suggests that factors beyond core operations significantly impacted cash available to equity holders. These factors could include changes in debt levels, share repurchases, dividend payments, or other financing activities. While operating cash flow recovered in subsequent years, FCFE did not fully rebound to its initial levels, indicating a continued influence of these other factors. The recent stabilization of FCFE in 2024 and 2025 may suggest a more predictable pattern is emerging, but further investigation into the underlying drivers of these fluctuations is warranted.
Price to FCFE Ratio, Current
Freeport-McMoRan Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,437,201,606 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,534) |
| FCFE per share | 1.07 |
| Current share price (P) | 59.21 |
| Valuation Ratio | |
| P/FCFE | 55.47 |
| Benchmarks | |
| P/FCFE, Industry | |
| Materials | 29.71 |
Based on: 10-K (reporting date: 2025-12-31).
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Freeport-McMoRan Inc., historical P/FCFE 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,534,000,000 ÷ 1,437,201,606 = 1.07
4 Closing price as at the filing date of Freeport-McMoRan Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 62.84 ÷ 1.07 = 58.87
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initial values indicate a decreasing FCFE per share alongside a relatively stable share price, resulting in an increasing P/FCFE ratio. Later periods demonstrate increased volatility in both share price and FCFE per share, leading to significant shifts in the P/FCFE ratio.
- Share Price
- The share price experienced a slight decline from US$43.67 in 2021 to US$42.31 in 2022, followed by a more substantial decrease to US$38.83 in 2023. A modest recovery to US$39.47 occurred in 2024, before a significant increase to US$62.84 in 2025.
- FCFE per Share
- FCFE per share decreased from US$3.67 in 2021 to US$2.02 in 2022, and then became negative in 2023, reaching -US$0.52. A positive value of US$1.30 was recorded in 2024, followed by a further increase to US$1.07 in 2025, though remaining below the 2021 and 2022 levels.
- P/FCFE Ratio
- The P/FCFE ratio increased from 11.90 in 2021 to 20.95 in 2022, reflecting the decline in FCFE per share. The ratio was not calculated for 2023 due to the negative FCFE per share. It then rose to 30.30 in 2024 and experienced a substantial increase to 58.87 in 2025, driven by the combination of a higher share price and a relatively low, though positive, FCFE per share.
The significant increase in the P/FCFE ratio in 2025 warrants further investigation. While the share price increased substantially, the FCFE per share remained relatively modest. This suggests that investors may be anticipating future growth in FCFE, or that the share price increase is driven by factors other than current free cash flow generation. The negative FCFE per share in 2023 is a notable point, potentially indicating a period of significant cash outflow or investment.