Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

Market Value Added (MVA)

Microsoft Excel

Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.


MVA

Freeport-McMoRan Inc., MVA calculation

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Fair value of long-term debt, including current portion1 8,807 9,364 10,097 10,630 10,994
Operating lease liability 790 431 332 319 228
Market value of common equity 56,721 55,698 60,533 63,530 47,984
Noncontrolling interests 11,197 10,617 9,316 9,039 8,494
Less: Investment securities 36 33 32 79 36
Market (fair) value of FCX 77,479 76,077 80,246 83,439 67,664
Less: Invested capital2 33,889 35,126 36,035 35,043 32,173
MVA 43,590 40,951 44,211 48,396 35,491

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Freeport-McMoRan Inc. market (fair) value less invested capital. Freeport-McMoRan Inc. MVA decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

MVA Spread Ratio

Freeport-McMoRan Inc., MVA spread ratio calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Market value added (MVA)1 43,590 40,951 44,211 48,396 35,491
Invested capital2 33,889 35,126 36,035 35,043 32,173
Performance Ratio
MVA spread ratio3 128.63% 116.58% 122.69% 138.11% 110.31%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 MVA. See details »

2 Invested capital. See details »

3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 43,590 ÷ 33,889 = 128.63%

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Freeport-McMoRan Inc. MVA spread ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

MVA Margin

Freeport-McMoRan Inc., MVA margin calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Market value added (MVA)1 43,590 40,951 44,211 48,396 35,491
 
Revenues 25,455 22,855 22,780 22,845 14,198
Add: Increase (decrease) in deferred revenue (70) 85 (115) 126 53
Adjusted revenues 25,385 22,940 22,665 22,971 14,251
Performance Ratio
MVA margin2 171.72% 178.51% 195.06% 210.68% 249.04%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 MVA. See details »

2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 43,590 ÷ 25,385 = 171.72%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Freeport-McMoRan Inc. MVA margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.