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Formosa Taffeta Co (1434) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 32.0B TWD

FT Formosa Taffeta Co 1434 · TW
Price17.25 TWD
Fair Value8.74 TWD
Upside-49.3%
Quality54/100
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Weak Growth
Thin margins · 3.8% net margin
Low debt · generates free cash flow
2.70% dividend yield
Trails peers (4/14)
Narrow moat 29/100
Evidence: High Range 6.56 TWD – 11.11 TWD Share as image

Fair value as of: Jul 23, 2026

From 22 valuation models · updated 18 days ago

Share price −4.4% over the past month.

A solid business, but screening 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (11.11 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

29.81 TWD 14.60 TWD Fair Value 8.74 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 14.60 TWD – 29.81 TWD · fair‑value band 6.56 TWD – 11.11 TWD · the 17.25 TWD price screens above the 8.74 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Formosa Taffeta Co (1434) currently trades at 17.25 TWD, while our model-based Fair Value estimate is 8.74 TWD, implying the stock looks roughly 49.3% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Formosa Taffeta Co generated revenue of 27.5B TWD at a net margin of 3.1%. Revenue declined 10.7% year over year. It earns a return on equity of 2.2%. Net debt stands at 8.0B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 6.56 TWD (bear case) to 11.11 TWD (bull case); at 17.25 TWD, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 20% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at -49%, 1434 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF 7.80 TWD 11.71 TWD 18.41 TWD 80
Residual Income 17.72 TWD 16.82 TWD 13.28 TWD 76
Rev-Margin DCF 3.26 TWD 5.43 TWD 8.19 TWD 74
All 22 models by family
DCF Models
FCF DCF 7.32 TWD 11.35 TWD 18.82 TWD 38
Owner Earnings 5.10 TWD 8.26 TWD 14.12 TWD 31
5Y Revenue Exit 3.26 TWD 5.19 TWD 7.97 TWD 39
5Y EBITDA Exit 6.73 TWD 11.20 TWD 17.11 TWD 41
5Y P/E Exit 5.47 TWD 9.00 TWD 13.24 TWD 38
10Y Revenue Exit 4.67 TWD 6.25 TWD 7.85 TWD 36
10Y EBITDA Exit 6.88 TWD 9.97 TWD 13.22 TWD 37
10Y P/E Exit 6.11 TWD 8.61 TWD 10.95 TWD 35
Earnings-Based
Graham-Dodd 3.50 TWD 4.27 TWD 4.81 TWD 54
EPV 0.1300 TWD 0.6400 TWD 1.09 TWD 59
Multiples
P/E Multiple 8.49 TWD 11.31 TWD 14.14 TWD 63
P/S Multiple 6.56 TWD 8.74 TWD 10.93 TWD 58
P/B Multiple 6.56 TWD 8.74 TWD 10.93 TWD 55
EV/EBIT 3.00 TWD 4.98 TWD 6.96 TWD 53
EV/EBITDA 7.94 TWD 11.57 TWD 15.20 TWD 54
EV/Revenue 1.06 TWD 2.78 TWD 4.49 TWD 43
Asset-Based
NCAV (Graham) 12.58 TWD 16.86 TWD 25.16 TWD 50
Growth DCF
Growth DCF 7.80 TWD 11.71 TWD 18.41 TWD 80
Rev-Margin DCF 3.26 TWD 5.43 TWD 8.19 TWD 74
Economic Profit
Residual Income 17.72 TWD 16.82 TWD 13.28 TWD 76
ROIC Compounder 0.1300 TWD 0.6400 TWD 1.09 TWD 72
Growth Earnings
Growth-Adj P/E 5.98 TWD 8.55 TWD 11.11 TWD 68

Widest divergence: Asset-Based (16.86 TWD) versus Earnings-Based (0.6400 TWD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 26.8B TWD
Revenue growth (YoY) -9.2%
Net margin 3.1%
Return on equity 2.5%
Free cash flow 1.8B TWD FY2025
P/E ratio 32.6
More key figures
Operating margin 1.6%
EPS (TTM) 0.5100 TWD
Dividend yield 3.1%
EPS growth (YoY) +79.9%
Net debt 8.0B TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 61

Profitability 22
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Formosa Taffeta Co., Ltd. operates in the textile industry in Taiwan and Asia. The company offers eco-friendly, sports and outdoor, safety, and lifestyle fabrics. It also offers umbrella, carbon fiber, spun yarn, tire cord, and PE plastic bags.

Full company description

Formosa Taffeta Co., Ltd. operates in the textile industry in Taiwan and Asia. The company offers eco-friendly, sports and outdoor, safety, and lifestyle fabrics. It also offers umbrella, carbon fiber, spun yarn, tire cord, and PE plastic bags. In addition, it is involved in accepting commissions to handle urban land rezoning; residential and building development, and leasing; development of new towns, communities, and specific specialized zones; manufacturing, processing and sales of textiles, fabrics, dyeing and finishing, carpets, curtains, and cleaning products; sales of polyurethane fabrics and polyurethane textiles; polyurethane fabric, polyester long fiber, and tire curtain fabric; dyeing and finishing processes; polyester long fiber gray fabrics, colored fabrics, printed fabrics, and twisted yarns; employment services, manpower dispatch, and intermediary services. The company was formerly known as Formosa Fiber Co., Ltd. and changed its name to Formosa Taffeta Co., Ltd. in January 1979. Formosa Taffeta Co., Ltd. was founded in 1973 and is headquartered in Douliou City, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Formosa Taffeta Co reported revenue of 27.5B TWD in FY2025 versus 32.8B TWD in FY2021, a compound −4.3%/yr. Reported net income was 865M TWD in FY2025, compounding −20.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
27.5B TWD
Latest YoY
−4.1%
Avg. growth/yr (3Y)
−7.4%
Avg. growth/yr (5Y)
−0.9%
Avg. growth/yr (25Y)
+1.5%
Revenue −4.3%/yr
FY21 32.8B TWD
FY22 34.7B TWD
FY23 28.5B TWD
FY24 28.7B TWD
FY25 27.5B TWD
Net income −20.3%/yr
FY21 2.1B TWD
FY22 3.4B TWD
FY23 445M TWD
FY24 1.5B TWD
FY25 865M TWD

1434 screens 49% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Formosa Taffeta Co Fair Value". https://www.fairvalue-calculator.com/stock/1434

Peer Group

Textile Manufacturing · 309 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside −49% · Below median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 3% · Below median
Revenue growth -9% · Below median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.19× · Higher than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 36.5× · Pricier than median
P/B 0.76× · Cheaper than median
P/S (TTM) 1.19× · Pricier than median
P/FCF 0.6× · Pricier than median
EV/EBITDA 20.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 11
FUTURE 0 · sector 0
PAST 10 · sector 14
HEALTH 90 · sector 95
DIVIDEND 54 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is Formosa Taffeta Co (1434) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 8.74 TWD versus a price of 17.25 TWD, about −49% (overvalued).
What is the fair value of 1434?
Our model-based fair value for Formosa Taffeta Co is 8.74 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 17.25 TWD.
What is the quality score of 1434?
Formosa Taffeta Co has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Formosa Taffeta Co (1434)?
Formosa Taffeta Co reported trailing-twelve-month revenue of about 27.5B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 1434?
The net profit margin of Formosa Taffeta Co is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does Formosa Taffeta Co pay a dividend?
Formosa Taffeta Co currently shows a dividend yield of about 3.06% relative to its recent price (as of Jul 23, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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