Formosa Petrochemical Corporation

TWSE:6505 Stock Report

Market Cap: NT$418.7b

Formosa Petrochemical Valuation

Is 6505 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6505 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6505 (NT$43.95) is trading above our estimate of fair value (NT$42.65)

Significantly Below Fair Value: 6505 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6505?

Key metric: As 6505 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6505. This is calculated by dividing 6505's market cap by their current earnings.
What is 6505's PE Ratio?
PE Ratio68.3x
EarningsNT$6.13b
Market CapNT$418.67b

Price to Earnings Ratio vs Peers

How does 6505's PE Ratio compare to its peers?

The above table shows the PE ratio for 6505 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
NESTE Neste Oyj
24.7x48.0%€10.9b
5020 ENEOS Holdings
12.3x10.9%JP¥2.3t
BPCL Bharat Petroleum
9.8x3.5%₹1.3t
HINDPETRO Hindustan Petroleum
19.1x30.3%₹801.9b
6505 Formosa Petrochemical
68.3x51.5%NT$418.7b

Price-To-Earnings vs Peers: 6505 is expensive based on its Price-To-Earnings Ratio (68.3x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does 6505's PE Ratio compare vs other companies in the Asian Oil and Gas Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
6505 68.3xIndustry Avg. 10.7xNo. of Companies36PE0816243240+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6505 is expensive based on its Price-To-Earnings Ratio (68.3x) compared to the Asian Oil and Gas industry average (10.5x).

Price to Earnings Ratio vs Fair Ratio

What is 6505's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6505 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio68.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6505's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 6505 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$43.40
NT$66.71
+53.7%
23.8%NT$95.00NT$51.00n/a7
Nov ’25NT$48.15
NT$66.71
+38.6%
23.8%NT$95.00NT$51.00n/a7
Oct ’25NT$52.30
NT$67.99
+30.0%
20.3%NT$95.00NT$51.00n/a9
Sep ’25NT$56.10
NT$71.32
+27.1%
15.6%NT$95.00NT$55.00n/a9
Aug ’25NT$65.50
NT$71.32
+8.9%
15.6%NT$95.00NT$55.00n/a9
Jul ’25NT$65.00
NT$77.10
+18.6%
12.8%NT$95.00NT$65.00n/a9
Jun ’25NT$67.40
NT$79.99
+18.7%
14.3%NT$100.00NT$65.00n/a9
May ’25NT$72.20
NT$80.88
+12.0%
13.4%NT$100.00NT$65.00n/a9
Apr ’25NT$71.80
NT$83.00
+15.6%
14.2%NT$100.00NT$65.00n/a9
Mar ’25NT$72.30
NT$85.00
+17.6%
12.5%NT$100.00NT$70.00n/a9
Feb ’25NT$76.20
NT$85.00
+11.5%
12.5%NT$100.00NT$70.00n/a9
Jan ’25NT$80.70
NT$85.03
+5.4%
13.0%NT$100.00NT$70.00n/a9
Dec ’24NT$83.50
NT$85.14
+2.0%
12.8%NT$100.00NT$71.00n/a9
Nov ’24NT$79.00
NT$84.92
+7.5%
12.7%NT$100.00NT$71.00NT$48.159
Oct ’24NT$80.60
NT$86.10
+6.8%
12.0%NT$100.00NT$69.00NT$52.309
Sep ’24NT$79.90
NT$85.99
+7.6%
12.2%NT$100.00NT$69.00NT$56.109
Aug ’24NT$81.00
NT$85.99
+6.2%
12.2%NT$100.00NT$69.00NT$65.509
Jul ’24NT$84.30
NT$84.57
+0.3%
13.9%NT$100.00NT$68.00NT$65.009
Jun ’24NT$85.50
NT$84.23
-1.5%
14.0%NT$100.00NT$68.00NT$67.409
May ’24NT$86.80
NT$84.23
-3.0%
14.0%NT$100.00NT$68.00NT$72.209
Apr ’24NT$85.00
NT$78.89
-7.2%
13.8%NT$100.00NT$68.00NT$71.809
Mar ’24NT$83.60
NT$78.89
-5.6%
13.8%NT$100.00NT$68.00NT$72.309
Feb ’24NT$82.70
NT$78.89
-4.6%
13.8%NT$100.00NT$68.00NT$76.209
Jan ’24NT$80.30
NT$79.59
-0.9%
13.8%NT$100.00NT$68.00NT$80.709
Dec ’23NT$84.30
NT$79.59
-5.6%
13.8%NT$100.00NT$68.00NT$83.509
Nov ’23NT$83.20
NT$79.59
-4.3%
13.8%NT$100.00NT$68.00NT$79.009

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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