Formosan Union Chemical Corp (1709) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Formosan Union Chemical Corp TWD 15.51, price TWD 43.50, upside -64.3%, quality 61 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Formosan Union Chemical Corp. produces and sells chemical products in Taiwan, China, Guatemala, the Philippines, Vietnam, the United States, and internationally.
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Formosan Union Chemical Corp. produces and sells chemical products in Taiwan, China, Guatemala, the Philippines, Vietnam, the United States, and internationally. The company offers alkyl benzene, which is used as a raw material for detergents; nonyl phenol that is used as a raw material for surfactants rubbers and plastic anti-oxidant agents, etc., as well as dodecyl phenol for lubricating oils.; and hydrogenated hydrocarbon resin, which is used as a raw material for the production of ethylene-vinyl acetate polymer EVA and thermal plastic rubber TPR series hot melt adhesives. It also trades in residential and commercial property and electronic materials, as well as engages in the solar photovoltaic system construction, maintenance, and operation; land development; and agency business of Huawei products; development of an online booking platform; and hotel operation. In addition, the company is involved in the manufacturing, processing, and trading of petroleum resins, polyester resins, melamine resins, plaque resins, urea resins, alkyd resins, acetate resins, butyl acrylate resins, alkylbenzene and sulfonic acid, and aromatic hydrocarbon fluxes; planning and design of petrochemical engineering; installation and trading of mechanical equipment; distribution of domestic liquefied petroleum gas; and repair and maintenance and inspection of steel cylinders. Further, it engages in the petrochemical raw materials, synthetic resins, rubber and plastics, other chemical products manufacturing and wholesale; and manufacturing and sales of pesticides and sugar, batteries, and electronic components, as well as power generation, transmission, and power distribution machinery; warehouse and silo lease activity; and food trading and bakery operations. The company was founded in 1973 and is based in Taipei, Taiwan.
Stock analysis
Formosan Union Chemical Corp (1709) currently trades at 43.50 TWD, while our model-based Fair Value estimate is 15.51 TWD, implying the stock looks roughly 180.4% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of 19.63 TWD per share, and 0 of the 22 models we run sit above the 43.50 TWD price.
Bear case: the Earnings-Based group reads lowest at 10.11 TWD, and 22 of the 22 models stay below the price. Evidence for this calculation is high.
Scenario range: 11.39 TWD (bear) to 19.12 TWD (bull), the price of 43.50 TWD sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Basic Materials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Formosan Union Chemical Corp reported revenue of 9.0B TWD in FY2025 versus 9.2B TWD in FY2021, a compound −0.5%/yr. Reported net income was 586M TWD in FY2025, compounding −11.3%/yr from FY2021.
Key figures
Market cap 20.7B TWD (≈ $651M) · P/E ratio 35.4 · P/S ratio 2.30 · EPS (TTM) 1.23 TWD · Dividend yield 2.3% · Net margin 6.5% · Return on equity 7.3% · Return on assets (EBIT) 6.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 10% below its 52-week high and 168% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −27% fair-value upside, at −64%, 1709 screens richer than that median.
Fair Value models
Bear 11.39 TWDFair Value 15.51 TWDBull 19.12 TWD
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (0.1689 TWD per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.2%
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.0%
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What shareholders gained per year (last 5 years), in TWD ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+3.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.2%
Dividend (yield on the price)2.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1% vs −1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 7%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 1.9%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +22.9% a year for the price.
Compare Formosan Union Chemical Corp with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Chemicals · 352 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score61 · Top 25%
Fair Value upside−64% · Bottom 25%
Profitability
Return on equity (TTM)7% · Above median
Return on assets4% · Above median
Net margin (TTM)8% · Above median
Operating margin (TTM)13% · Above median
Growth and dividend
Revenue growth−8% · Bottom 25%
Dividend yield (TTM)2.3% · Above median
Balance sheet
Debt / equity0.00× · Lowest 25%
Valuation Multiplesvs Chemicals median · lower = cheaper
P/E (TTM)35.4× · Pricier than median
P/B2.32× · Pricier than median
P/S (TTM)2.35× · Pricier than median
P/FCF1.3× · Cheaper than median
EV/EBITDA21.9× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 2
FUTURE (revenue growth)0· sector 23
PAST (return on equity)29· sector 19
HEALTH (low debt)100· sector 94
DIVIDEND (yield)46· sector 32
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Formosan Union Chemical Corp Fair Value". https://www.fairvalue-calculator.com/stock/1709
Frequently asked questions
Is Formosan Union Chemical Corp (1709) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 15.51 TWD versus a price of 43.50 TWD, about −64% upside (overvalued).
What is the fair value of 1709?
Our model-based fair value for Formosan Union Chemical Corp is 15.51 TWD (as of Sep 24, 2026), built from audited fundamentals. The current price: 43.50 TWD.
What is the quality score of 1709?
Formosan Union Chemical Corp has a Quality Score of 61/100. 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 price target for Formosan Union Chemical Corp (1709)?
Our model-based price target is the fair value of 15.51 TWD (as of Sep 24, 2026) from 22 valuation models. Cautious scenario 11.39 TWD, optimistic scenario 19.12 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Formosan Union Chemical Corp stock forecast for 2026?
Our models put fair value at 15.51 TWD, about −64% upside versus a price of 43.50 TWD (overvalued). Cautious scenario 11.39 TWD, optimistic scenario 19.12 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Formosan Union Chemical Corp (1709)?
Formosan Union Chemical Corp reported trailing-twelve-month revenue of about 8.8B TWD (latest available figure, as of Sep 24, 2026).
Does Formosan Union Chemical Corp pay a dividend?
Formosan Union Chemical Corp currently shows a dividend yield of about 2.30% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Formosan Union Chemical Corp (1709)?
For today's price to be fair in a discounted-cash-flow model, Formosan Union Chemical Corp would have to grow free cash flow by +24.8 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 1709 use?
Our models discount Formosan Union Chemical Corp at 10.3 %: a base by market capitalisation (small), damped by beta 0.30, country premium for Taiwan. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Formosan Union Chemical Corp that is +24.8 % per year a year over ten years, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has Formosan Union Chemical Corp (1709) delivered so far?
Over the past 5 years revenue at Formosan Union Chemical Corp grew +1.2 % a year. The price currently implies +24.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Formosan Union Chemical Corp (1709) growing?
The median revenue growth in the sector is +3.3 % a year. That is the yardstick for the growth priced into Formosan Union Chemical Corp (+24.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Formosan Union Chemical Corp (1709)?
The free-cash-flow yield on the price is 2.40 %: that much free cash flow Formosan Union Chemical Corp produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Formosan Union Chemical Corp (1709)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Formosan Union Chemical Corp it is 15.51 TWD per share (as of Sep 24, 2026), against a price of 43.50 TWD. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Formosan Union Chemical Corp stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 1709 trades above its calculated fair value: price 43.50 TWD, fair value 15.51 TWD, a gap of about −64% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 1709?
No. The price is what the market pays today (43.50 TWD); the fair value is what the company's own numbers justify (15.51 TWD). For Formosan Union Chemical Corp the two are 27.99 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Formosan Union Chemical Corp worth?
The market values Formosan Union Chemical Corp at about 20.7B TWD (market capitalisation, as of Sep 24, 2026). Per share that is 43.50 TWD; our models calculate a fair value of 15.51 TWD per share.
What do the bullish and bearish scenarios say about 1709?
Our models span a range for Formosan Union Chemical Corp: cautious scenario 11.39 TWD, base 15.51 TWD, optimistic 19.12 TWD per share (as of Sep 24, 2026, price 43.50 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 1709?
Formosan Union Chemical Corp trades at a price-to-earnings ratio of 35.4 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 15.51 TWD is built from several models across several years. Other multiples: P/B 2.3, P/S 2.4, EV/EBITDA 21.9.
How solid is the balance sheet of Formosan Union Chemical Corp (1709)?
Balance-sheet figures for Formosan Union Chemical Corp (as of Sep 24, 2026): return on equity 7.3%, debt of 0.00 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is 1709 from its 52-week high?
Formosan Union Chemical Corp trades at 43.50 TWD, about 10% below its 52-week high of 48.30 TWD and 168% above the low of 16.25 TWD (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of 15.51 TWD is for.
Which stocks are comparable to Formosan Union Chemical Corp?
From the same area (Basic Materials) we also value BASF SE, Saudi Basic Industries Corporation, Ningxia Baofeng Energy Group, Dow Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Formosan Union Chemical Corp stock attractive at the current price?
The data as of Sep 24, 2026: price 43.50 TWD, calculated fair value 15.51 TWD (−64%), Quality Score 61/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 1709 calculated?
We run Formosan Union Chemical Corp through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 15.51 TWD, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0 % above its aggregate fair value. Formosan Union Chemical Corp itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Formosan Union Chemical Corp (1709)?
The closing price on Sep 24, 2026 was 43.50 TWD. Our model-based fair value is 15.51 TWD, about −64% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Formosan Union Chemical Corp right now?
The price sits above even our optimistic bull case (19.12 TWD). The favourable scenario is already priced in. Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Formosan Union Chemical Corp (1709) come from?
Earnings per share at Formosan Union Chemical Corp grew +0.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share −0.3 %, EBIT margin −2.0 %, tax rate +0.1 %, residual (interest, one-offs) +2.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Formosan Union Chemical Corp
How large is the market capitalisation of Formosan Union Chemical Corp (1709)?
The market capitalisation of Formosan Union Chemical Corp is 20.7B TWD (≈ $651M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Formosan Union Chemical Corp (1709)?
The price-to-sales ratio of Formosan Union Chemical Corp is 2.30 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Formosan Union Chemical Corp (1709)?
Earnings per share at Formosan Union Chemical Corp are 1.23 TWD (price ÷ EPS = P/E 35.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Formosan Union Chemical Corp (1709)?
The dividend yield of Formosan Union Chemical Corp is 2.3% (payout 81.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Formosan Union Chemical Corp (1709)?
The net margin of Formosan Union Chemical Corp is 6.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Formosan Union Chemical Corp (1709)?
The return on equity (ROE) of Formosan Union Chemical Corp is 7.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Formosan Union Chemical Corp (1709)?
On an EBIT basis the return on assets of Formosan Union Chemical Corp is 6.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Formosan Union Chemical Corp (1709)?
The operating margin of Formosan Union Chemical Corp is 13.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Formosan Union Chemical Corp (1709)?
Revenue at Formosan Union Chemical Corp is growing −7.5% versus a year earlier (3y avg −5.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Formosan Union Chemical Corp (1709)?
Earnings per share at Formosan Union Chemical Corp are growing +37.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Formosan Union Chemical Corp (1709) carry?
The net debt of Formosan Union Chemical Corp is 1.1B TWD (fiscal year 2025, ≈ 2.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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