Freeport-Mcmoran

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Clarksons Platou Securities	Jeremy Sussman	jeremy.sussman@clarksons.com
RBC Capital Markets	Fraser Phillips	fraser.phillips@rbccm.com
Scotiabank GBM	Orest Wowkodaw	orest.wowkodaw@scotiabank.com
Deutsche Bank Research	Chris Terry	chris.terry@db.com
Stifel Nicolaus	Paul Massoud	pamassoud@stifel.com
Jefferies	Christopher LaFemina	clafemina@jefferies.com
BMO Capital Markets	David Gagliano	david.gagliano@bmo.com
FBR Capital Markets & Co	Lucas Pipes	lpipes@fbr.com
BB&T Capital Markets	Garrett S. Nelson	gnelson@bbandtcm.com
Cowen & Company	Anthony B. Rizzuto Jr.	anthony.rizzuto@cowen.com
Gabelli & Company	Chris Mancini	cmancini@gabelli.com
Berenberg	Fawzi Hanano	fawzi.hanano.@berenberg.com
Morningstar	Jeffrey Stafford	jeffrey.stafford@morningstar.com
Argus Research	William Selesky	bselesky@argusresearch.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	125	481	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	(3,133)	916	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	88	(79)	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	42,270	33,052	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	0.30%	1.46%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	(8,113)	(6,688)	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	-6,500.80%	-1,390.44%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	-1.09%	-2.22%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	6.85%	10.53%
Enterprise value	EV_Market	26,457	30,403	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	27,990	29,610
Long-Run Growth	g = IR x ROIC	-19.19%	-20.23%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	1.18%	5.07%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	94.41%	77.37%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	1.63	2.08	2.61%	43.60%	0.74%	20.87%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	7.71	9.30	2.61%	43.60%	0.74%	20.87%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	212.00	63.21	2.61%	43.60%	0.74%	20.87%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	-8.44	33.19	2.61%	43.60%	0.74%	20.87%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	137.80	41.09	2.61%	43.60%	0.74%	20.87%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	0.63	0.92	2.61%	43.60%	0.74%	20.87%

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