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 currently has a P/E ratio of 17, a Price to Book Value of 3.68, and an EV to EBITDA of 8.47. In comparison, Southern Copper Corp., a peer in the same industry, has a higher P/E ratio of 25.64 and an EV to EBITDA of 14.20, which underscores Freeport-McMoRan's relative valuation position.
Despite a strong ROCE of 27.45% and ROE of 21.33%, the stock's recent performance shows a decline of 14.12% over the past year compared to a 14.08% gain in the S&P 500, further reinforcing the notion that it may be overvalued. The stock's performance over the last five years, with a return of 140.12%, does stand out, but the recent downturn suggests a potential correction in its valuation.