Is Freeport-McMoRan, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Freeport-McMoRan, Inc. has moved from fair to very expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 17, an EV to EBITDA of 8.47, and a Price to Book Value of 3.68, which are relatively high compared to its peers, such as Southern Copper Corp., which has a P/E of 25.64 and an EV to EBITDA of 14.20.
In terms of performance, Freeport-McMoRan's returns have lagged behind the S&P 500, with a year-to-date return of 8.14% compared to the S&P 500's 13.30%, and a one-year return of -14.12% against the S&P 500's 14.08%. This underperformance, combined with its very expensive valuation, reinforces the conclusion that the stock is overvalued.