Formosa Plastics Corporation

TWSE:1301 Stock Report

Market Cap: NT$279.8b

Formosa Plastics Valuation

Is 1301 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1301 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1301 (NT$43.95) is trading below our estimate of fair value (NT$90.84)

Significantly Below Fair Value: 1301 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1301?

Key metric: As 1301 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1301. This is calculated by dividing 1301's market cap by their current revenue.
What is 1301's PS Ratio?
PS Ratio1.4x
SalesNT$197.45b
Market CapNT$279.77b

Price to Sales Ratio vs Peers

How does 1301's PS Ratio compare to its peers?

The above table shows the PS ratio for 1301 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
1303 Nan Ya Plastics
1.2x4.6%NT$317.2b
1326 Formosa Chemicals & Fibre
0.6x-1.0%NT$205.9b
1717 Eternal Materials
0.8xn/aNT$35.0b
1314 China Petrochemical Development
1xn/aNT$30.8b
1301 Formosa Plastics
1.4x3.2%NT$279.8b

Price-To-Sales vs Peers: 1301 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does 1301's PS Ratio compare vs other companies in the TW Chemicals Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
1313 UPC Technology
0.2xn/aUS$438.48m
1304 USI
0.3x3.6%US$436.14m
1718 China Man-Made Fiber
0.3xn/aUS$334.43m
1309 Taita Chemical Company
0.4x2.6%US$197.72m
No more companies available in this PS range
1301 1.4xIndustry Avg. 1.8xNo. of Companies12PS01.63.24.86.48+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1301 is good value based on its Price-To-Sales Ratio (1.4x) compared to the TW Chemicals industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 1301's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1301 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: 1301 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 1301 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$43.95
NT$64.14
+45.9%
23.8%NT$86.00NT$46.00n/a7
Nov ’25NT$47.10
NT$64.14
+36.2%
23.8%NT$86.00NT$46.00n/a7
Oct ’25NT$53.00
NT$66.90
+26.2%
17.5%NT$86.00NT$49.00n/a10
Sep ’25NT$51.60
NT$66.90
+29.7%
17.5%NT$86.00NT$49.00n/a10
Aug ’25NT$58.50
NT$66.90
+14.4%
17.5%NT$86.00NT$49.00n/a10
Jul ’25NT$57.20
NT$70.20
+22.7%
11.9%NT$86.00NT$58.00n/a10
Jun ’25NT$65.30
NT$70.56
+8.0%
12.2%NT$86.00NT$58.00n/a9
May ’25NT$68.50
NT$72.78
+6.2%
11.9%NT$86.00NT$58.00n/a9
Apr ’25NT$70.90
NT$81.33
+14.7%
11.3%NT$95.00NT$64.00n/a9
Mar ’25NT$71.60
NT$82.22
+14.8%
12.1%NT$95.00NT$64.00n/a9
Feb ’25NT$73.50
NT$82.22
+11.9%
12.1%NT$95.00NT$64.00n/a9
Jan ’25NT$79.20
NT$83.89
+5.9%
9.7%NT$95.00NT$69.00n/a9
Dec ’24NT$80.70
NT$84.78
+5.1%
11.2%NT$102.00NT$69.00n/a9
Nov ’24NT$76.80
NT$84.78
+10.4%
11.2%NT$102.00NT$69.00NT$47.109
Oct ’24NT$79.80
NT$87.72
+9.9%
9.3%NT$104.00NT$78.00NT$53.009
Sep ’24NT$80.20
NT$90.15
+12.4%
10.3%NT$104.00NT$78.00NT$51.6010
Aug ’24NT$84.20
NT$91.32
+8.5%
10.5%NT$104.00NT$78.00NT$58.5011
Jul ’24NT$85.70
NT$94.05
+9.7%
9.2%NT$104.00NT$82.00NT$57.2011
Jun ’24NT$93.30
NT$96.96
+3.9%
8.0%NT$105.00NT$84.00NT$65.3010
May ’24NT$93.90
NT$95.84
+2.1%
8.6%NT$105.00NT$82.00NT$68.5012
Apr ’24NT$91.80
NT$95.04
+3.5%
8.8%NT$105.00NT$82.00NT$70.9012
Mar ’24NT$90.20
NT$95.13
+5.5%
8.7%NT$105.00NT$82.00NT$71.6012
Feb ’24NT$88.90
NT$94.96
+6.8%
8.7%NT$105.00NT$82.00NT$73.5012
Jan ’24NT$86.80
NT$98.88
+13.9%
12.9%NT$130.00NT$82.00NT$79.2012
Dec ’23NT$90.70
NT$98.88
+9.0%
12.9%NT$130.00NT$82.00NT$80.7012
Nov ’23NT$83.30
NT$98.88
+18.7%
12.9%NT$130.00NT$82.00NT$76.8012

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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