Formosa Petrochemical Corp (6505) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Formosa Petrochemical Corp stock TWD 35.53, price TWD 87.90, that is 59.6% below the price, quality 65 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range 30.95 TWD – 122.50 TWD · fair‑value band 23.46 TWD – 44.42 TWD · the 87.90 TWD price screens above the 35.53 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Formosa Petrochemical Corporation, together with its subsidiaries, engages in the production and sale of petroleum products and petrochemical raw materials in Taiwan, Australia, South Korea, the Philippines, Singapore, Malaysia, Mainland China, and internationally.
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The company offers gasoline, diesel, jet fuel/kerosene, fuel oil/asphalt/sulfur, naphtha, base oil, liquified petroleum gas, and lubricants. It also provides ethylene, propylene, butadiene, and BTX; and electricity, steam, and other utilities products.
Formosa Petrochemical Corporation was founded in 1992 and is headquartered in Mailiao, Taiwan.
Stock analysis
Formosa Petrochemical Corp (6505) currently trades at 87.90 TWD, while our model-based Fair Value estimate is 35.53 TWD, 60% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 37.40 TWD per share, and 0 of the 24 models we run sit above the 87.90 TWD price.
Bear case: the Dividend Discount group reads lowest at 8.55 TWD, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: 23.46 TWD (bear) to 44.42 TWD (bull), the price of 87.90 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 65/100 (solid quality), in the Energy sector.
Mixed Growth: Spin-off in 2009: revenue and profit before it include the divested business. Growth is measured afresh from 2009.
Formosa Petrochemical Corp reported revenue of 626B TWD in FY2025 versus 620B TWD in FY2021, a compound +0.2%/yr. Reported net income was 9.9B TWD in FY2025, compounding −33.1%/yr from FY2021.
Key figures
Market cap 849B TWD (≈ $25.8B) Large · P/E ratio 14.9 · P/S ratio 1.30 · EPS (TTM) 5.91 TWD · Dividend yield 1.4% · Net margin 8.4% · Return on equity 14.0% · Return on assets (EBIT) 4.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (low confidence).
What moves the price
The share trades about 28% below its 52-week high and 95% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at −34% fair-value upside, at −60%, 6505 screens richer than that median.
Fair Value models
Bear23.46 TWDFair Value 35.53 TWDBull44.42 TWD
Price 87.90 TWD · Downside -59.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (3.99 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.
Best data coverage
FCF DCF46.01 TWD62.72 TWD95.94 TWD80
Growth DCF48.02 TWD64.44 TWD94.48 TWD79
5Y EBITDA Exit25.19 TWD30.21 TWD37.07 TWD77
All 24 models by family
DCF Models
FCF DCF46.01 TWD62.72 TWD95.94 TWD80
Owner Earnings31.67 TWD42.66 TWD64.52 TWD76
5Y Revenue Exit25.57 TWD30.87 TWD38.69 TWD74
5Y EBITDA Exit25.19 TWD30.21 TWD37.07 TWD77
5Y P/E Exit25.43 TWD30.64 TWD37.14 TWD72
10Y Revenue Exit32.65 TWD37.83 TWD43.07 TWD68
10Y EBITDA Exit32.70 TWD37.40 TWD42.06 TWD70
10Y P/E Exit32.85 TWD37.68 TWD42.10 TWD65
Earnings-Based
Graham-Dodd7.05 TWD9.91 TWD11.59 TWD67
EPV12.46 TWD13.93 TWD15.23 TWD74
Dividend Discount
Gordon GGM7.65 TWD8.55 TWD9.81 TWD69
DDM Multi-Stage7.65 TWD10.02 TWD13.24 TWD67
Multiples
P/E Multiple10.88 TWD14.51 TWD18.14 TWD63
P/S Multiple13.22 TWD17.62 TWD22.03 TWD58
P/B Multiple43.84 TWD58.46 TWD73.07 TWD55
EV/EBIT11.34 TWD14.19 TWD17.05 TWD66
EV/EBITDA13.20 TWD16.68 TWD20.15 TWD67
EV/Revenue13.16 TWD17.62 TWD22.07 TWD54
Asset-Based
NCAV (Graham)13.61 TWD20.61 TWD25.77 TWD54
Growth DCF
Growth DCF48.02 TWD64.44 TWD94.48 TWD79
Rev-Margin DCF25.57 TWD31.81 TWD40.10 TWD74
Economic Profit
Residual Income27.53 TWD27.15 TWD27.54 TWD76
ROIC Compounder12.46 TWD13.93 TWD15.23 TWD72
Growth Earnings
Growth-Adj P/E7.83 TWD11.19 TWD14.54 TWD67
The fair value above starts from this blend and is adjusted for a cyclical trough year.
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.55/100
Spin-off in 2009: revenue and profit before it include the divested business. Growth is measured afresh from 2009.
Revenue growth 1 year
−5.7%
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.
−9.6%
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.
+8.6%
Start year 2020 (pandemic). Over 10 years: −0.1% 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.
−0.1%
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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.
−21.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−23.1%
Dividend (yield on the price)1.4%
Per share before 2009divided by the spin-off factor 1.03
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.−23.1% vs −14.5%, 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.2% → 2%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 3.1%/yr over ~10Y (margins eroding too) ⓘ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 about as much growth as the company has delivered so far and more than analysts expect.
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).
+5.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−2.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (Taiwan: IMF forecast 1.6% a year to 2030, 1.5% from 2016 to 2025) that is about +3.9% a year for the price and −4.4% for the forecasts.
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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.Oil & Gas Refining & Marketing · 116 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside−59.6% · Bottom 25%
Profitability
Return on equity (12 months)14.0% · Above median
Return on assets2.4% · Below median
Net margin (12 months)8.4% · Top 25%
Operating margin (12 months)12.5% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)25.7% · Below median
Dividend yield (12 months)1.4% · Below median
Balance sheet
Debt / equity0.03× · Lowest 25%
Valuation Multiplesvs Oil & Gas Refining & Marketing median · lower = cheaper
P/E (12 months)14.9× · Pricier than median
P/B2.39× · Priciest 25%
P/S (12 months)1.30× · Priciest 25%
Price / free cash flow22.1× · Priciest 25%
EV/EBITDA11.3× · Pricier than median
PEG5.22× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 29
FUTURE (revenue growth)100· sector 100
PAST (return on equity)56· sector 48
HEALTH (low debt)99· sector 85
DIVIDEND (yield)27· sector 65
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.
Is Formosa Petrochemical Corp (6505) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of 35.53 TWD versus a price of 87.90 TWD, about 60% lower (overvalued).
What is the fair value of 6505?
Our model-based fair value for Formosa Petrochemical Corp is 35.53 TWD (as of Nov 1, 2026), built from audited fundamentals. The current price: 87.90 TWD.
What is the quality score of 6505?
Formosa Petrochemical Corp has a Quality Score of 65/100. 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 Petrochemical Corp (6505)?
Our model-based price target is the fair value of 35.53 TWD (as of Nov 1, 2026) from 24 valuation models. Cautious scenario 23.46 TWD, optimistic scenario 44.42 TWD. It is a calculation from audited fundamentals, not an analyst target.
What is the Formosa Petrochemical Corp stock forecast for 2026?
Our models put fair value at 35.53 TWD, about 60% lower versus a price of 87.90 TWD (overvalued). Cautious scenario 23.46 TWD, optimistic scenario 44.42 TWD. The calculation is refreshed regularly with new filings.
What is the revenue of Formosa Petrochemical Corp (6505)?
Formosa Petrochemical Corp reported trailing-twelve-month revenue of about 652B TWD (latest available figure, as of Nov 1, 2026).
Does Formosa Petrochemical Corp pay a dividend?
Formosa Petrochemical Corp currently shows a dividend yield of 1.37% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Formosa Petrochemical Corp (6505)?
For today's price to be fair in a discounted-cash-flow model, Formosa Petrochemical Corp would have to grow free cash flow by +5.6 % per year for five years (discount rate 8.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.6 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of 6505 use?
Our models discount Formosa Petrochemical Corp at 8.6 %: a base by market capitalisation (large), damped by beta 0.08, 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 Petrochemical Corp that is +5.6 % per year a year over ten years, using the same discount rate (8.6 %) and the same formula as our fair value.
How much growth has Formosa Petrochemical Corp (6505) delivered so far?
Over the past 5 years revenue at Formosa Petrochemical Corp grew +8.6 % a year. The price currently implies +5.6 % 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 Petrochemical Corp (6505) growing?
The median revenue growth in the sector is +14.1 % a year. That is the yardstick for the growth priced into Formosa Petrochemical Corp (+5.6 % 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 Petrochemical Corp (6505)?
The free-cash-flow yield on the price is 4.58 %: that much free cash flow Formosa Petrochemical Corp produces per unit of market value. When it exceeds the discount rate of our models (8.6 %), 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 Petrochemical Corp (6505)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Formosa Petrochemical Corp it is 35.53 TWD per share (as of Nov 1, 2026), against a price of 87.90 TWD. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Formosa Petrochemical Corp stock overvalued or undervalued in 2026?
As of Nov 1, 2026, 6505 trades above its calculated fair value: price 87.90 TWD, fair value 35.53 TWD, a gap of about −60% (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 6505?
No. The price is what the market pays today (87.90 TWD); the fair value is what the company's own numbers justify (35.53 TWD). For Formosa Petrochemical Corp the two are 52.37 TWD per share apart. That gap is exactly why we show both numbers side by side.
How much is Formosa Petrochemical Corp worth?
The market values Formosa Petrochemical Corp at about 849B TWD (market capitalisation, as of Nov 1, 2026). Per share that is 87.90 TWD; our models calculate a fair value of 35.53 TWD per share.
What do the bullish and bearish scenarios say about 6505?
Our models span a range for Formosa Petrochemical Corp: cautious scenario 23.46 TWD, base 35.53 TWD, optimistic 44.42 TWD per share (as of Nov 1, 2026, price 87.90 TWD). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 6505?
Formosa Petrochemical Corp trades at a price-to-earnings ratio of 14.9 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 35.53 TWD is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 30.2. Other multiples: PEG 5.2, P/B 2.4, P/S 1.3, EV/EBITDA 11.3.
What is the PEG ratio of 6505?
The PEG ratio of Formosa Petrochemical Corp is 5.22 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Formosa Petrochemical Corp (6505)?
Balance-sheet figures for Formosa Petrochemical Corp (as of Nov 1, 2026): return on equity 14.0%, debt of 0.03 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is 6505 from its 52-week high?
Formosa Petrochemical Corp trades at 87.90 TWD, about 28% below its 52-week high of 122.50 TWD and 95% above the low of 45.05 TWD (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of 35.53 TWD is for.
Which stocks are comparable to Formosa Petrochemical Corp?
From the same area (Energy) we also value Reliance Industries Limited, Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66, 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 Petrochemical Corp stock attractive at the current price?
The data as of Nov 1, 2026: price 87.90 TWD, calculated fair value 35.53 TWD (−60%), Quality Score 65/100, from 24 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 6505 calculated?
We run Formosa Petrochemical Corp through 24 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 35.53 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 15.0% above its aggregate fair value. Formosa Petrochemical 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 Formosa Petrochemical Corp (6505)?
The closing price on Nov 5, 2026 was 87.90 TWD. Our model-based fair value is 35.53 TWD, about 60% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Formosa Petrochemical Corp right now?
The price sits above even our optimistic bull case (44.42 TWD). The favourable scenario is already priced in. Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (23.46 TWD to 44.42 TWD) leaves room in how you read the outcome.
Where does the earnings growth of Formosa Petrochemical Corp (6505) come from?
Earnings per share at Formosa Petrochemical Corp grew −14.7 % a year from 2015 to 2025. Broken into its drivers: revenue per share +1.6 %, EBIT margin −18.5 %, tax rate −0.1 %, residual (interest, one-offs) +3.2 %. 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 Petrochemical Corp
How large is the market capitalisation of Formosa Petrochemical Corp (6505)?
The market capitalisation of Formosa Petrochemical Corp is 849B TWD (≈ $25.8B). 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 Petrochemical Corp (6505)?
The price-to-sales ratio of Formosa Petrochemical Corp is 1.30 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Formosa Petrochemical Corp (6505)?
Earnings per share at Formosa Petrochemical Corp are 5.91 TWD (price ÷ EPS = P/E 14.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Formosa Petrochemical Corp (6505)?
The dividend yield of Formosa Petrochemical Corp is 1.4% (payout 20.3%). 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 Formosa Petrochemical Corp (6505)?
The net margin of Formosa Petrochemical Corp is 8.4% (last twelve months). 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 Petrochemical Corp (6505)?
The return on equity (ROE) of Formosa Petrochemical Corp is 14.0% (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 Petrochemical Corp (6505)?
On an EBIT basis the return on assets of Formosa Petrochemical Corp is 4.7% (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 Petrochemical Corp (6505)?
The operating margin of Formosa Petrochemical Corp is 12.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Formosa Petrochemical Corp (6505)?
Revenue at Formosa Petrochemical Corp is growing +25.7% versus a year earlier (3y avg −9.6%). 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 Petrochemical Corp (6505)?
Earnings per share at Formosa Petrochemical Corp are growing +454% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Formosa Petrochemical Corp (6505) hold?
Formosa Petrochemical Corp holds more cash than debt, 26.4B TWD net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 1, 2026