Formosa Laboratories Inc (4746) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Formosa Laboratories Inc TWD 67.75, price TWD 48.05, upside +41.0%, quality 62 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Formosa Laboratories, Inc., together with its subsidiaries, engages in the manufacture and sale of active pharmaceutical ingredients (APIs) and ultraviolet absorbers in India, the Netherlands, Japan, Germany, Taiwan, China, Switzerland, the United States, Canada, and internationally.
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Formosa Laboratories, Inc., together with its subsidiaries, engages in the manufacture and sale of active pharmaceutical ingredients (APIs) and ultraviolet absorbers in India, the Netherlands, Japan, Germany, Taiwan, China, Switzerland, the United States, Canada, and internationally. It offers APIs in the areas of anticancer, vitamin D derivatives, anti-inflammatory and analgesic agents, immunomodulators, respiratory agents, cholesterol and phosphate binders, UV filter, iron deficiency anemia (IDA), CNS agents, MRI enhancing agents, steroids, antibiotics, and other areas; and injectables in the areas of IDA, MRI agents, oncology, and others. The company also provides contract development and manufacturing services, including recrystallization, filtration, dialysis, column purification, distillation, spray drying, and micronization; injectable manufacturing and secondary packaging, labeling, and serialization services; custom fermentation services; and peptide synthesis services. In addition, it offers antibody-drug conjugates services comprising antibody development and manufacture; peptide and polymer drug conjugation; linker-payload design, synthesis, and manufacturing; bio-conjugation and purification; cytotoxic liquid-filled and lyophilized product from pre-formulation studies to manufacture; and regulatory support. Further, the company is involved in chemical trading and investment activities. Formosa Laboratories, Inc. was incorporated in 1985 and is headquartered in Taoyuan City, Taiwan.
Stock analysis
Formosa Laboratories Inc (4746) currently trades at 48.05 TWD, while our model-based Fair Value estimate is 67.75 TWD, implying the stock looks roughly 29.1% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of 80.10 TWD per share, and 15 of the 26 models we run sit above the 48.05 TWD price.
Bear case: the Earnings-Based group reads lowest at 23.18 TWD, and 11 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: 39.49 TWD (bear) to 91.76 TWD (bull), the price of 48.05 TWD sits inside 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 62/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Formosa Laboratories Inc reported revenue of 4.9B TWD in FY2025 versus 3.1B TWD in FY2021, a compound +11.5%/yr. Reported net income was 441M TWD in FY2025, compounding −22.9%/yr from FY2021.
Key figures
Market cap 6.3B TWD (≈ $199M) · P/E ratio 13.2 · P/S ratio 1.20 · EPS (TTM) 3.64 TWD · Dividend yield 6.2% · Net margin 9.1% · Return on equity 3.6% · Return on assets (EBIT) 5.7%.
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 30% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −8% fair-value upside, at 41%, 4746 screens cheaper than that median.
Fair Value models
Bear 39.49 TWDFair Value 67.75 TWDBull 91.76 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 (0.4699 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.80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+2.5%
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.
+8.8%
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.
+9.5%
Start year 2020 (pandemic). Over 10 years: +6.4% a year
Revenue growth 16 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.
+6.0%
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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. Basis: EBIT basis. 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.
≈ +9.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.4%
Dividend (yield on the price)6.2%
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.−10% vs 3%, slowing
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.14% → 17%
Start year 2020 (pandemic)
⚠ Rate on operating basis: 2025 sits 213% above its own trend.
Growth Forecast
Little optimism in the price
The price assumes less 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).
+6.4%
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 +4.7% a year for the price.
Compare Formosa Laboratories Inc with another stock
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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.Drug Manufacturers - Specialty & Generic · 628 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+41% · Top 25%
Profitability
Return on equity (TTM)4% · Below median
Return on assets3% · Above median
Net margin (TTM)7% · Above median
Operating margin (TTM)14% · Above median
Growth and dividend
Revenue growth−7% · Bottom 25%
Dividend yield (TTM)6.2% · Top 25%
Balance sheet
Debt / equity0.25× · Above median
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
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Is Formosa Laboratories Inc (4746) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of 67.75 TWD versus a price of 48.05 TWD, about +41% upside (undervalued).
What is the fair value of 4746?
Our model-based fair value for Formosa Laboratories Inc is 67.75 TWD (as of Sep 24, 2026), built from audited fundamentals. The current price: 48.05 TWD.
What is the quality score of 4746?
Formosa Laboratories Inc has a Quality Score of 62/100. 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 Formosa Laboratories Inc (4746)?
Our model-based price target is the fair value of 67.75 TWD (as of Sep 24, 2026) from 26 valuation models. Cautious scenario 39.49 TWD, optimistic scenario 91.76 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Formosa Laboratories Inc stock forecast for 2026?
Our models put fair value at 67.75 TWD, about +41% upside versus a price of 48.05 TWD (undervalued). Cautious scenario 39.49 TWD, optimistic scenario 91.76 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Formosa Laboratories Inc (4746)?
Formosa Laboratories Inc reported trailing-twelve-month revenue of about 4.8B TWD (latest available figure, as of Sep 24, 2026).
Does Formosa Laboratories Inc pay a dividend?
Formosa Laboratories Inc currently shows a dividend yield of about 6.24% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Formosa Laboratories Inc (4746)?
For today's price to be fair in a discounted-cash-flow model, Formosa Laboratories Inc would have to grow free cash flow by +6.4 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.5 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 4746 use?
Our models discount Formosa Laboratories Inc at 11.8 %: a base by market capitalisation (micro), damped by beta 0.52, 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 Formosa Laboratories Inc that is +6.4 % per year a year over ten years, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Formosa Laboratories Inc (4746) delivered so far?
Over the past 5 years revenue at Formosa Laboratories Inc grew +9.5 % a year. The price currently implies +6.4 % 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 Formosa Laboratories Inc (4746) growing?
The median revenue growth in the sector is +4.2 % a year. That is the yardstick for the growth priced into Formosa Laboratories Inc (+6.4 % 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 Formosa Laboratories Inc (4746)?
The free-cash-flow yield on the price is 9.11 %: that much free cash flow Formosa Laboratories Inc produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Formosa Laboratories Inc (4746)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Formosa Laboratories Inc it is 67.75 TWD per share (as of Sep 24, 2026), against a price of 48.05 TWD. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Formosa Laboratories Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 4746 trades below its calculated fair value: price 48.05 TWD, fair value 67.75 TWD, a gap of about +41% (undervalued). 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 4746?
No. The price is what the market pays today (48.05 TWD); the fair value is what the company's own numbers justify (67.75 TWD). For Formosa Laboratories Inc the two are 19.70 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Formosa Laboratories Inc worth?
The market values Formosa Laboratories Inc at about 6.3B TWD (market capitalisation, as of Sep 24, 2026). Per share that is 48.05 TWD; our models calculate a fair value of 67.75 TWD per share.
What do the bullish and bearish scenarios say about 4746?
Our models span a range for Formosa Laboratories Inc: cautious scenario 39.49 TWD, base 67.75 TWD, optimistic 91.76 TWD per share (as of Sep 24, 2026, price 48.05 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 4746?
Formosa Laboratories Inc trades at a price-to-earnings ratio of 13.2 (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 67.75 TWD is built from several models across several years. Other multiples: P/B 0.8, P/S 1.3, EV/EBITDA 5.4.
How solid is the balance sheet of Formosa Laboratories Inc (4746)?
Balance-sheet figures for Formosa Laboratories Inc (as of Sep 24, 2026): return on equity 3.6%, debt of 0.25 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is 4746 from its 52-week high?
Formosa Laboratories Inc trades at 48.05 TWD, about 30% below its 52-week high of 68.40 TWD and 6% above the low of 45.25 TWD (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of 67.75 TWD is for.
Which stocks are comparable to Formosa Laboratories Inc?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Jiangsu Hengrui Pharmaceuticals Co, Sun Pharmaceutical Industries Limited, 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 Formosa Laboratories Inc stock attractive at the current price?
The data as of Sep 24, 2026: price 48.05 TWD, calculated fair value 67.75 TWD (+41%), Quality Score 62/100, from 26 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 4746 calculated?
We run Formosa Laboratories Inc through 26 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 67.75 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. Formosa Laboratories Inc currently trades 41 % below its own fair value, and the market average says nothing about that. 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 Formosa Laboratories Inc (4746)?
The closing price on Sep 24, 2026 was 48.05 TWD. Our model-based fair value is 67.75 TWD, about +41% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Formosa Laboratories Inc right now?
Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (39.49 TWD to 91.76 TWD) leaves room in how you read the outcome.
Where does the earnings growth of Formosa Laboratories Inc (4746) come from?
Earnings per share at Formosa Laboratories Inc grew −6.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.4 %, EBIT margin +0.5 %, tax rate −2.9 %, residual (interest, one-offs) −7.0 %. 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 Formosa Laboratories Inc
How large is the market capitalisation of Formosa Laboratories Inc (4746)?
The market capitalisation of Formosa Laboratories Inc is 6.3B TWD (≈ $199M). 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 Formosa Laboratories Inc (4746)?
The price-to-sales ratio of Formosa Laboratories Inc is 1.20 (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 Formosa Laboratories Inc (4746)?
Earnings per share at Formosa Laboratories Inc are 3.64 TWD (price ÷ EPS = P/E 13.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Formosa Laboratories Inc (4746)?
The dividend yield of Formosa Laboratories Inc is 6.2% (payout 82.4%). 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 Formosa Laboratories Inc (4746)?
The net margin of Formosa Laboratories Inc is 9.1% (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 Formosa Laboratories Inc (4746)?
The return on equity (ROE) of Formosa Laboratories Inc is 3.6% (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 Formosa Laboratories Inc (4746)?
On an EBIT basis the return on assets of Formosa Laboratories Inc is 5.7% (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 Formosa Laboratories Inc (4746)?
The operating margin of Formosa Laboratories Inc is 14.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Formosa Laboratories Inc (4746)?
Revenue at Formosa Laboratories Inc is growing −7.0% versus a year earlier (3y avg +8.8%). 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 Formosa Laboratories Inc (4746)?
Earnings per share at Formosa Laboratories Inc are growing −85.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Formosa Laboratories Inc (4746) carry?
The net debt of Formosa Laboratories Inc is 2.5B TWD (fiscal year 2025, ≈ 5.2 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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