Freeport-McMoRan Inc. (NYSE:FCX) runs in leading trade, it are falling -0.54% to traded at $12.82. FCX attains analyst recommendation of 3.00 on scale of 1-5 with week’s performance of 3.39%.
According to data compiled by Thomson Reuters, analysts expect Freeport-McMoRan (FCX) to post an adjusted EBITDA of $5.3 billion in 2017, compared to $4.9 billion in 2016. Analysts expect Freeport’s adjusted EBITDA to rise 8.2% year-over-year in 2017. Freeport’s earnings are sensitive to copper prices. The company expects its 2017 EBITDA to rise or fall $415 million for every $0.10-per-pound rise or fall in copper prices. Similarly, Freeport’s EBITDA is expected to rise or fall $105 million for every $50-per-ounce rise or fall in gold prices.
To find out the technical position of FCX, it holds price to book ratio of 2.97 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 9.79. FCX is presenting price to cash flow of 4.38 and free cash flow concluded as 17.12.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 73.90%, and looking further price to next year’s EPS is 30.77%. While take a short look on price to sales ratio, that was 1.25.
BHP Billiton Limited (NYSE:BHP) kept active in under and overvalue discussion, BHP holds price to book ratio of 1.78 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 40.68, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
Taking look on ratio analysis, BHP has forward price to earnings ratio of 18.57, compare to its price to earnings ratio of 40.68. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 7.67. The co is presenting price to cash flow as 7.16 and while calculating price to free cash flow it concluded at 18.74, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 2.11% for a week and 1.74% for a month. Its beta stands at 1.26 times. Narrow down four to firm performance, its weekly performance was 6.28% and monthly performance was -4.32%.