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Formosa Laboratories, Inc (4746) Fair Value & Analysis

Healthcare · TW · Market cap 6.3B TWD

FL Formosa Laboratories, Inc 4746 · TW
Price54.40 TWD
Fair Value77.94 TWD
Upside+43.3%
Quality62/100
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Healthy Growth
Thin margins · 7.1% net margin
Low debt · generates free cash flow
5.84% dividend yield
Ranks above peers (11/14)
Narrow moat 40/100
Evidence: Medium Range 49.41 TWD – 100.87 TWD Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from 77.83 TWD to 77.94 TWD (+0.1%) since Jul 11, 2026. Share price −0.7% over the past month.

A solid business, screening 43% undervalued on our models.

What matters 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 (49.41 TWD to 100.87 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

117.00 TWD 44.34 TWD Fair Value 77.94 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 44.34 TWD – 117.00 TWD · fair‑value band 49.41 TWD – 100.87 TWD · the 54.40 TWD price screens below the 77.94 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Formosa Laboratories, Inc (4746) currently trades at 54.40 TWD, while our model-based Fair Value estimate is 77.94 TWD, implying the stock looks roughly 43.3% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Formosa Laboratories, Inc generated revenue of 4.8B TWD at a net margin of 7.1%. Revenue declined 7.0% year over year. It earns a return on equity of 3.6%. Net debt stands at 2.5B TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 49.41 TWD (bear case) to 100.87 TWD (bull case); at 54.40 TWD, the current price sits within 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 24% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 43%, 4746 screens cheaper 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 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
Highest evidence
Growth DCF 36.03 TWD 55.12 TWD 81.24 TWD 80
Residual Income 50.22 TWD 51.79 TWD 51.25 TWD 76
Rev-Margin DCF 45.36 TWD 78.62 TWD 116.47 TWD 74
All 26 models by family
DCF Models
FCF DCF 35.39 TWD 57.01 TWD 88.47 TWD 38
Owner Earnings 6.40 TWD 13.13 TWD 22.93 TWD 31
5Y Revenue Exit 45.36 TWD 78.82 TWD 121.58 TWD 39
5Y EBITDA Exit 75.28 TWD 134.51 TWD 203.77 TWD 41
5Y P/E Exit 42.77 TWD 73.99 TWD 106.54 TWD 38
10Y Revenue Exit 39.41 TWD 68.56 TWD 107.70 TWD 36
10Y EBITDA Exit 59.78 TWD 106.26 TWD 168.74 TWD 37
10Y P/E Exit 39.56 TWD 65.29 TWD 96.53 TWD 35
Earnings-Based
Graham-Dodd 24.94 TWD 75.82 TWD 100.60 TWD 54
Lynch FV 16.23 TWD 23.18 TWD 30.14 TWD 50
PEG = 1.0 16.23 TWD 23.18 TWD 30.14 TWD 46
EPV 46.00 TWD 54.33 TWD 61.51 TWD 59
Dividend Discount
Gordon GGM 26.35 TWD 52.50 TWD 79.50 TWD 70
DDM Multi-Stage 26.35 TWD 42.37 TWD 55.42 TWD 61
Multiples
P/E Multiple 60.52 TWD 80.70 TWD 100.87 TWD 63
P/S Multiple 46.77 TWD 62.36 TWD 77.95 TWD 58
P/B Multiple 46.77 TWD 62.36 TWD 77.95 TWD 55
EV/EBIT 78.43 TWD 106.82 TWD 135.20 TWD 53
EV/EBITDA 111.35 TWD 150.70 TWD 190.06 TWD 54
EV/Revenue 54.05 TWD 80.10 TWD 106.15 TWD 43
Asset-Based
NCAV (Graham) 32.25 TWD 43.22 TWD 64.51 TWD 50
Growth DCF
Growth DCF 36.03 TWD 55.12 TWD 81.24 TWD 80
Rev-Margin DCF 45.36 TWD 78.62 TWD 116.47 TWD 74
Economic Profit
Residual Income 50.22 TWD 51.79 TWD 51.25 TWD 76
ROIC Compounder 46.00 TWD 54.33 TWD 61.51 TWD 72
Growth Earnings
Growth-Adj P/E 49.41 TWD 70.58 TWD 91.76 TWD 68

Widest divergence: Multiples (80.10 TWD) versus Earnings-Based (23.18 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 4.8B TWD
Revenue growth (YoY) -7.0%
Net margin 7.1%
Return on equity 3.6%
Free cash flow 472M TWD FY2025
P/E ratio 14.4
More key figures
Operating margin 14.2%
EPS (TTM) 3.64 TWD
Dividend yield 5.8%
EPS growth (YoY) -85.0%
Net debt 2.5B TWD FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 61 · Market factors (momentum, volatility) 41

Profitability 31
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 100
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 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.

Full company description

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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 80/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
4.9B TWD
Latest YoY
+2.5%
Avg. growth/yr (3Y) 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.
+8.8%
Avg. growth/yr (5Y) 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.
+9.5%
Avg. growth/yr (16Y) 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.
+6.0%
Revenue +11.5%/yr
FY21 3.1B TWD
FY22 3.8B TWD
FY23 4.4B TWD
FY24 4.7B TWD
FY25 4.9B TWD
Net income −22.9%/yr
FY21 1.2B TWD
FY22 217M TWD
FY23 126M TWD
FY24 157M TWD
FY25 441M TWD
Character of growth · EPS growth decomposed (2014-2025) −6.2 % p.a.
Revenue per share +3.4 pp

of which total revenue +6.0 pp · buybacks/dilution −2.6 pp

EBIT margin +0.5 pp
Tax rate −2.9 pp
Residual (interest, one-offs) −7.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Formosa Laboratories, Inc Fair Value". https://www.fairvalue-calculator.com/stock/4746

Peer Group

Drug Manufacturers - Specialty & Generic · 623 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 62 · Above median
Fair Value upside +43% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 3% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth -7% · Below median
Dividend yield (TTM) 5.8% · Top 25%
Debt / equity 0.25× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 14.4× · Cheaper than median
P/B 0.81× · Cheaper than 75% of peers
P/S (TTM) 1.32× · Cheaper than median
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 5.4× · Cheaper 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 91 · sector 6
FUTURE 0 · sector 20
PAST 14 · sector 24
HEALTH 87 · sector 97
DIVIDEND 100 · sector 34

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 Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Formosa Laboratories, Inc (4746) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 77.94 TWD versus a price of 54.40 TWD, about +43% (undervalued).
What is the fair value of 4746?
Our model-based fair value for Formosa Laboratories, Inc is 77.94 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 54.40 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 revenue of Formosa Laboratories, Inc (4746)?
Formosa Laboratories, Inc reported trailing-twelve-month revenue of about 4.8B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 4746?
The net profit margin of Formosa Laboratories, Inc is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. Based on the latest reported figures.
Does Formosa Laboratories, Inc pay a dividend?
Formosa Laboratories, Inc currently shows a dividend yield of about 5.88% relative to its recent price (as of Jul 21, 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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