Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Freeport-McMoRan Inc., current price multiples
| Freeport-McMoRan Inc. | Materials | ||
|---|---|---|---|
| Selected Financial Data | |||
| Current share price (P) | $56.48 | ||
| No. shares of common stock outstanding | 1,437,201,606 | ||
| Growth rate (g) | 11.18% | ||
| Earnings per share (EPS) | $1.53 | ||
| Next year expected EPS | $1.70 | ||
| Operating profit per share | $4.54 | ||
| Sales per share | $18.03 | ||
| Book value per share (BVPS) | $13.15 | ||
| Valuation Ratios (Price Multiples) | |||
| Price to earnings (P/E) | 36.83 | 32.67 | |
| Price to next year expected earnings | 33.13 | 29.43 | |
| Price-earnings-growth (PEG) | 3.29 | 2.97 | |
| Price to operating profit (P/OP) | 12.45 | 19.80 | |
| Price to sales (P/S) | 3.13 | 4.57 | |
| Price to book value (P/BV) | 4.30 | 6.17 | |
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Freeport-McMoRan Inc., historical price multiples
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 valuation ratios demonstrate varied trends over the five-year period. Generally, ratios increased from 2023 to 2025, suggesting a shift in market perception of the company’s value relative to its fundamentals.
- Price to Earnings (P/E)
- The Price to Earnings ratio exhibited a substantial increase throughout the period. Starting at 14.75 in 2021, it rose to 17.45 in 2022, then experienced a significant jump to 30.14 in 2023. This upward trend continued, reaching 30.03 in 2024 and culminating in 40.98 in 2025. This indicates increasing investor willingness to pay for each dollar of earnings.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio showed a more moderate increase. It began at 7.59 in 2021 and gradually increased to 8.60 in 2022 and 8.95 in 2023. A slight decrease to 8.26 was observed in 2024, followed by a more pronounced increase to 13.86 in 2025. This suggests a growing, but less dramatic, valuation relative to operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio initially decreased from 2.78 in 2021 to 2.66 in 2022 and further to 2.44 in 2023. This trend reversed in 2024, with the ratio falling to 2.23, before increasing substantially to 3.48 in 2025. This indicates a fluctuating valuation relative to revenue, with a notable increase in the most recent year.
- Price to Book Value (P/BV)
- The Price to Book Value ratio generally decreased from 4.54 in 2021 to 3.89 in 2022 and 3.34 in 2023, remaining relatively stable at 3.23 in 2024. A significant increase to 4.78 was observed in 2025, suggesting a renewed emphasis on the company’s net asset value by investors.
Overall, the observed trends suggest a strengthening valuation across multiple metrics, particularly in the later years of the period. The increases in P/E, P/OP, P/S, and P/BV from 2023 to 2025 indicate a positive shift in investor sentiment and a potentially higher perceived value of the company.
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Price to Earnings (P/E)
Freeport-McMoRan Inc., historical P/E 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.
2 2025 Calculation
EPS = Net income attributable to common stockholders ÷ No. shares of common stock outstanding
= 2,204,000,000 ÷ 1,437,201,606 = 1.53
3 Closing price as at the filing date of Freeport-McMoRan Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 62.84 ÷ 1.53 = 40.98
The price to earnings (P/E) ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio increased before declining and then rising significantly. This movement correlates with changes in both share price and earnings per share (EPS).
- P/E Ratio Trend
- The P/E ratio began at 14.75 in 2021 and increased to 17.45 in 2022. A substantial increase followed, with the ratio reaching 30.14 in 2023 and remaining relatively stable at 30.03 in 2024. The most significant change occurred in 2025, where the P/E ratio rose sharply to 40.98.
- Share Price Influence
- The share price experienced a slight decrease from US$43.67 in 2021 to US$42.31 in 2022, followed by a more pronounced decline to US$38.83 in 2023. A modest recovery was observed in 2024, with the price reaching US$39.47. However, the share price increased considerably in 2025, closing at US$62.84. This increase in share price contributed significantly to the higher P/E ratio observed in 2025.
- EPS Influence
- Earnings per share decreased from US$2.96 in 2021 to US$2.42 in 2022, and then experienced a more substantial decline to US$1.29 in 2023. EPS showed only marginal improvement in 2024, reaching US$1.31, before increasing to US$1.53 in 2025. The relatively slower growth in EPS compared to the share price increase explains a portion of the rise in the P/E ratio during the later years of the period.
The combined effect of share price and EPS fluctuations resulted in the observed P/E ratio trend. The substantial increase in the P/E ratio in 2025 suggests that investors were willing to pay a higher premium for each dollar of earnings, potentially reflecting increased optimism about future growth prospects or a re-evaluation of risk.
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Price to Operating Profit (P/OP)
Freeport-McMoRan Inc., historical P/OP 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.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,518,000,000 ÷ 1,437,201,606 = 4.54
3 Closing price as at the filing date of Freeport-McMoRan Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 62.84 ÷ 4.54 = 13.86
The price to operating profit (P/OP) ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased from 2021 to 2023, followed by a decrease in 2024, and a substantial increase in 2025. This movement suggests a changing relationship between the company’s share price and its operating profitability.
- P/OP Ratio Trend
- The P/OP ratio began at 7.59 in 2021, increasing to 8.60 in 2022. A subsequent increase to 8.95 occurred in 2023, representing the highest value in the observed period prior to 2025. The ratio then decreased to 8.26 in 2024 before rising significantly to 13.86 in 2025.
- Share Price and Operating Profit Relationship
- From 2021 to 2023, the share price decreased from US$43.67 to US$38.83, while operating profit per share also decreased from US$5.75 to US$4.34. The P/OP ratio increased during this period, indicating that the share price declined at a slower rate than operating profit. In 2024, the share price slightly increased to US$39.47, and operating profit per share also increased to US$4.78, resulting in a decrease in the P/OP ratio. The substantial increase in the P/OP ratio in 2025 was driven by a significant increase in the share price to US$62.84, while operating profit per share remained relatively stable at US$4.54.
The observed increase in the P/OP ratio in 2025 warrants further investigation. It could indicate increased investor confidence, potentially driven by factors not reflected in operating profit alone, or a market overvaluation relative to current earnings. The earlier period of increasing P/OP alongside decreasing share price and operating profit suggests a period of relative investor pessimism or a market correction.
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Price to Sales (P/S)
Freeport-McMoRan Inc., historical P/S 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.
2 2025 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 25,915,000,000 ÷ 1,437,201,606 = 18.03
3 Closing price as at the filing date of Freeport-McMoRan Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 62.84 ÷ 18.03 = 3.48
The price-to-sales ratio exhibited a generally decreasing trend from 2021 through 2023, followed by a significant increase in 2025. This movement occurred alongside fluctuations in both share price and sales per share.
- Price-to-Sales Ratio Trend
- The price-to-sales ratio decreased from 2.78 in 2021 to 2.66 in 2022, representing a modest decline. This downward trend continued into 2023, with the ratio falling to 2.44. A further decrease was observed in 2024, reaching 2.23. However, the ratio experienced a substantial increase in 2025, rising to 3.48.
- Share Price and Sales per Share Relationship
- The share price decreased from US$43.67 in 2021 to US$38.83 in 2023, before increasing to US$62.84 in 2025. Sales per share remained relatively stable between 2021 and 2023, fluctuating between US$15.70 and US$15.93. An increase in sales per share was observed in 2024 and 2025, reaching US$17.71 and US$18.03 respectively. The significant increase in the price-to-sales ratio in 2025 coincides with both a substantial increase in share price and a moderate increase in sales per share.
- Overall Interpretation
- The initial decline in the price-to-sales ratio from 2021 to 2024 suggests that the market was valuing each dollar of sales at a decreasing rate. The sharp increase in 2025 indicates a shift in market sentiment, with investors willing to pay a higher premium for each dollar of sales. This change could be attributed to improved market conditions, positive company-specific developments, or broader economic factors influencing investor expectations.
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Price to Book Value (P/BV)
Freeport-McMoRan Inc., historical P/BV 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.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 18,899,000,000 ÷ 1,437,201,606 = 13.15
3 Closing price as at the filing date of Freeport-McMoRan Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 62.84 ÷ 13.15 = 4.78
The price to book value ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio decreased from 2021 to 2023, then stabilized, and finally increased significantly in 2025.
- Price to Book Value (P/BV) Trend
- The P/BV ratio began at 4.54 in 2021 and experienced a consistent decline, reaching 3.34 in 2023. This suggests a decreasing market valuation relative to the net asset value of the company during this period. The ratio remained relatively stable at 3.23 in 2024 before increasing substantially to 4.78 in 2025. This final increase indicates a renewed investor confidence or a shift in market perception regarding the company’s asset valuation.
The share price demonstrated a similar pattern of decline followed by a substantial increase. From a value of US$43.67 in 2021, the share price decreased to US$38.83 in 2023, then showed a modest increase to US$39.47 in 2024, before rising sharply to US$62.84 in 2025.
- Book Value per Share (BVPS) Trend
- Book value per share consistently increased throughout the period, rising from US$9.61 in 2021 to US$13.15 in 2025. This indicates a steady growth in the net asset value attributable to each share. The consistent increase in BVPS, coupled with the fluctuating P/BV ratio, suggests that market sentiment played a significant role in the overall valuation.
The interplay between the share price and book value per share suggests that the market’s assessment of the company’s future earnings potential and risk profile influenced the P/BV ratio more than changes in the underlying asset base during the 2021-2024 timeframe. The significant increase in both share price and P/BV in 2025 implies a substantial positive shift in market expectations.
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