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• If you are looking at Freeport-McMoRan and wondering whether the current price still offers value, you are not alone.
• The stock last closed at US$60.41, with returns of 2.9% over 7 days, 16.4% over 30 days, 16.3% year to date and 62.0% over the past year, which naturally raises questions about what is already priced in.
• Recent coverage has highlighted Freeport-McMoRan as a key copper producer, with attention on how its operations position it for long term demand trends linked to electrification and infrastructure. Commentators have also focused on how these themes relate to recent share price moves and investor appetite for commodity exposure.
• Right now, Freeport-McMoRan has a valuation score of 2/6. This reflects how it screens across different checks and sets us up to look at traditional valuation approaches next, before finishing with a more complete way to think about what the stock might be worth.

Freeport-McMoRan scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Freeport-McMoRan Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model looks at the cash Freeport-McMoRan might generate in the future and discounts those projected cash flows back to today, to estimate what the business could be worth right now.

For Freeport-McMoRan, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The company’s last twelve months Free Cash Flow is about $678.0 million. Analyst estimates and subsequent extrapolations in the model suggest Free Cash Flow could reach $9.4b by 2030, with ten year projections provided in millions of dollars and then discounted back to today to reflect the time value of money.

Putting all those discounted cash flows together gives an estimated intrinsic value of US$109.59 per share, compared with the recent share price of US$60.41. On these specific inputs, the DCF output implies the shares trade at a 44.9% discount within this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Freeport-McMoRan is undervalued by 44.9%. Track this in your watchlist or portfolio, or discover 864 more undervalued stocks based on cash flows.

FCX Discounted Cash Flow as at Jan 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Freeport-McMoRan.

Approach 2: Freeport-McMoRan Price vs Earnings

For profitable companies, the P/E ratio is a useful way to think about value because it ties the share price directly to the earnings that each share represents. Investors usually accept a higher or lower P/E depending on what they expect for future earnings growth and how risky they think those earnings are.

Freeport-McMoRan currently trades on a P/E of 39.36x. That sits above both the Metals and Mining industry average P/E of 27.06x and the peer group average of 28.44x, which suggests the market is paying a higher price for each dollar of the company’s earnings than for many peers.

Simply Wall St’s Fair Ratio for Freeport-McMoRan is 25.85x. This is a proprietary estimate of what a “normal” P/E might look like for the company after considering factors such as its earnings growth profile, profit margins, industry, market value and key risks. Because it is tailored to the company’s characteristics, the Fair Ratio can give a more specific reference point than a simple comparison with industry or peer averages.

Comparing the current P/E of 39.36x with the Fair Ratio of 25.85x suggests the shares are trading above this model’s view of fair value.

Result: OVERVALUED

NYSE:FCX P/E Ratio as at Jan 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1428 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Freeport-McMoRan Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply the story you believe about a company, translated into numbers like fair value, future revenue, earnings and margins.

A Narrative connects what you think is happening with Freeport-McMoRan’s business to a forecast, and then to an estimated fair value per share, so you are not just reacting to the current price in isolation.

On Simply Wall St, Narratives sit inside the Community page and are designed to be easy to use, so you can see how your view lines up against other investors who are using the same framework.

Each Narrative compares its fair value estimate to today’s share price, which can help you decide whether the gap between value and price is wide enough for you to consider buying, holding or selling.

Because Narratives update automatically when new information like news, earnings releases or company guidance is added, your view can stay current without you rebuilding a model from scratch.

For Freeport-McMoRan, you might see one Narrative with a relatively high fair value and another with a much lower fair value, reflecting different expectations for copper demand, project execution and long term profitability.

Do you think there’s more to the story for Freeport-McMoRan? Head over to our Community to see what others are saying!

NYSE:FCX 1-Year Stock Price Chart

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com