A Look At Freeport-McMoRan (FCX) Valuation As Media Interest In Copper And Gold Leader Grows

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Recent commentary from Jim Cramer and ClearBridge Investments has put Freeport-McMoRan (FCX) back in focus, as both highlight its role as a major copper and gold producer and emphasize management quality and asset strength.

See our latest analysis for Freeport-McMoRan.[2]

The latest share price of US£60.07 sits against a 30 day share price return of 22.22% and a 90 day share price return of 47.30%, while the 1 year total shareholder return of 51.13% and 5 year total shareholder return of 138.22% point to momentum that has been gaining pace rather than fading.

If this copper and gold story has caught your attention, it could be a good moment to broaden your view and see how fast growing stocks with high insider ownership [3] compare on growth and ownership trends.

With Freeport-McMoRan trading at US£60.07, sitting on a 1 year total return above 50% and an intrinsic value estimate that suggests a discount, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

At US£60.07, Freeport-McMoRan is trading on a P/E of 41.8x, which sits well above both its peers and our estimated fair ratio, hinting at a rich earnings multiple.

The P/E multiple compares the current share price to earnings per share and is a common way to see how much investors are paying for each dollar of profit. For a large copper and gold producer, it often reflects how the market is weighing current profitability against expectations for future earnings and commodity conditions.

In Freeport-McMoRan's case, the shares are described as expensive on a P/E basis compared with the peer average of 28x and the US Metals and Mining industry average of 26.8x. They also trade above an estimated fair P/E of 29.1x.

This suggests the current market valuation is well ahead of the level the ratio could move toward if pricing adjusted closer to that fair estimate.

Explore the SWS fair ratio for Freeport-McMoRan [4]

Result: Price-to-Earnings of 41.8x (OVERVALUED)

However, you still face clear risks, including a rich P/E multiple that could compress and the possibility that analyst expectations and intrinsic value estimates turn out to be too optimistic.

Find out about the key risks to this Freeport-McMoRan narrative.[5]

While the 41.8x P/E paints Freeport-McMoRan as expensive, our DCF model suggests the opposite, with an estimated future cash flow value of US£109.90 versus the current US£60.07 share price. That gap indicates a difference in the signals from these valuation methods, so which one do you put more weight on?

Look into how the SWS DCF model arrives at its fair value.[6]

FCX Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Freeport-McMoRan for example [7]). We show the entire calculation in full.

You can track the result in your watchlist [8] or portfolio [9] and be alerted when this changes, or use our stock screener to discover 872 undervalued stocks based on their cash flows [10]. If you save a screener [11] we even alert you when new companies match - so you never miss a potential opportunity.

If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can quickly build a tailored view of Freeport-McMoRan and compare it with other ideas using our tools, then Do it your way [12].

A great starting point for your Freeport-McMoRan research is our analysis highlighting 2 key rewards and 1 important warning sign [13] that could impact your investment decision.

Do not stop your research with a single stock. Broaden your watchlist with data driven ideas that match the kind of opportunities you actually want to follow.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.

We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FCX [14].

Have feedback on this article?

Concerned about the content? Get in touch [15] with us directly. Alternatively, email [email protected][16]

References

^ Track your investments for FREE (simplywall.st)
^ See our latest analysis for Freeport-McMoRan. (www.simplywall.st)
^ fast growing stocks with high insider ownership (simplywall.st)
^ Explore the SWS fair ratio for Freeport-McMoRan (www.simplywall.st)
^ Find out about the key risks to this Freeport-McMoRan narrative. (www.simplywall.st)
^ Look into how the SWS DCF model arrives at its fair value. (www.simplywall.st)
^ check out Freeport-McMoRan for example (www.simplywall.st)
^ watchlist (simplywall.st)
^ portfolio (simplywall.st)
^ 872 undervalued stocks based on their cash flows (simplywall.st)
^ save a screener (simplywall.st)
^ Do it your way (support.simplywall.st)
^ 2 key rewards and 1 important warning sign (finance.yahoo.com)
^ FCX (finance.yahoo.com)
^ Get in touch (feedback.simplywall.st)
^ [email protected] (finance.yahoo.com)