Is Freeport-McMoRan, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Freeport-McMoRan, Inc. has moved from expensive to very expensive, indicating a shift towards a more unfavorable valuation perspective. The company is currently overvalued based on its metrics. Key ratios include a P/E ratio of 17, an EV to EBITDA of 8.47, and a Price to Book Value of 3.68, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peer Southern Copper Corp., which has a P/E ratio of 25.64 and an EV to EBITDA of 14.20, Freeport-McMoRan appears less attractive despite its higher ROCE of 27.45% and ROE of 21.33%. The recent stock performance shows that Freeport-McMoRan has underperformed the S&P 500 over the past year, returning only 2.30% compared to the S&P 500's 17.14%, reinforcing the notion that the stock may be overvalued.