Formosa Plastics Corporation

TWSE:1301 Stock Report

Market Cap: NT$436.1b

Formosa Plastics Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 1301 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1301 (NT$68.5) is trading above our estimate of fair value (NT$46.36)

Significantly Below Fair Value: 1301 is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

1301 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA119.2x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 1301 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.9x
1303 Nan Ya Plastics
70.4x75.3%NT$444.1b
1326 Formosa Chemicals & Fibre
37.7x37.2%NT$322.3b
1717 Eternal Materials
24.8xn/aNT$37.2b
4763 Jinan Acetate Chemical
14.8xn/aNT$76.6b
1301 Formosa Plastics
59.4x71.7%NT$436.1b

Price-To-Earnings vs Peers: 1301 is expensive based on its Price-To-Earnings Ratio (59.4x) compared to the peer average (36.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a56.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a56.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 1301 is expensive based on its Price-To-Earnings Ratio (59.4x) compared to the TW Chemicals industry average (23.5x).


Price to Earnings Ratio vs Fair Ratio

What is 1301'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.

1301 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio59.4x
Fair PE Ratio100.7x

Price-To-Earnings vs Fair Ratio: 1301 is good value based on its Price-To-Earnings Ratio (59.4x) compared to the estimated Fair Price-To-Earnings Ratio (100.7x).


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$68.50
NT$81.33
+18.7%
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$69.00n/a9
Oct ’24NT$79.80
NT$87.72
+9.9%
9.3%NT$104.00NT$78.00n/a9
Sep ’24NT$80.20
NT$90.15
+12.4%
10.3%NT$104.00NT$78.00n/a10
Aug ’24NT$84.20
NT$91.32
+8.5%
10.5%NT$104.00NT$78.00n/a11
Jul ’24NT$85.70
NT$94.05
+9.7%
9.2%NT$104.00NT$82.00n/a11
Jun ’24NT$93.30
NT$96.96
+3.9%
8.0%NT$105.00NT$84.00n/a10
May ’24NT$93.90
NT$95.84
+2.1%
8.6%NT$105.00NT$82.00n/a12
Apr ’24NT$91.80
NT$95.04
+3.5%
8.8%NT$105.00NT$82.00n/a12
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
Oct ’23NT$86.60
NT$117.90
+36.1%
12.2%NT$134.00NT$96.00NT$79.8010
Sep ’23NT$90.00
NT$117.90
+31.0%
12.2%NT$134.00NT$96.00NT$80.2010
Aug ’23NT$92.50
NT$119.90
+29.6%
10.9%NT$134.00NT$96.00NT$84.2010
Jul ’23NT$108.00
NT$127.10
+17.7%
9.2%NT$140.00NT$105.00NT$85.7010
Jun ’23NT$106.50
NT$127.40
+19.6%
9.3%NT$140.00NT$105.00NT$93.3010
May ’23NT$105.50
NT$127.30
+20.7%
9.4%NT$140.00NT$107.00NT$93.9010
Apr ’23NT$107.00
NT$128.70
+20.3%
10.6%NT$146.00NT$107.00NT$91.8010
Mar ’23NT$108.00
NT$132.50
+22.7%
9.2%NT$146.00NT$107.00NT$90.2010

Analyst Forecast: Target price is less than 20% higher than the current share price.


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