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Formosa PlasticsTPE:1301 +4.35%66 Debt-to-EBITDA is 4.79 as of Mar. 2026, which is 194% above its 10-year median of 1.63. GuruFocus rates TPE:1301 with a GF Score™ of 66/100 and a GF Value™ of NT$46.36 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,242 Chemicals companies, Formosa Plastics ranks worse than 94.52% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Formosa Plastics's Debt-to-EBITDA or its related term are showing as below:
TPE:1301'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.59 Med: 1.63 Max: 36.77
Current: 19.09
During the past 13 years, the highest Debt-to-EBITDA Ratio of Formosa Plastics was 36.77. The lowest was 0.59. And the median was 1.63.
TPE:1301's Debt-to-EBITDA is ranked worse than 94.52% of 1242
companies
in the Chemicals industry
Industry Median: 2.14
vs TPE:1301: 19.09
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Formosa Plastics Debt-to-EBITDA Related Terms
Formosa Plastics Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Formosa Plastics's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TPE:1301 vs LIN, SHW, ECL: Debt-to-EBITDA Comparison
For the Specialty Chemicals subindustry, Formosa Plastics's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Formosa Plastics Debt-to-EBITDA vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosa Plastics's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Formosa Plastics's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Formosa Plastics (TPE:1301) has a Debt-to-EBITDA of 4.79 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Formosa Plastics. This is 194% above median its historical median of 1.63. Over the past decade, Formosa Plastics' Debt-to-EBITDA has ranged from 0.59 to 36.77. According to the industry distribution chart, Formosa Plastics ranks #1174 out of 1242 companies in the Chemicals industry, placing it in the top 94.5%.
Is Formosa Plastics' Debt-to-EBITDA too high?
Formosa Plastics' current Debt-to-EBITDA of 4.79 is 194% above median its 10-year median of 1.63. Over the past 10 years, this metric has ranged from a low of 0.59 to a high of 36.77. The Chemicals industry median Debt-to-EBITDA is 2.14. Formosa Plastics' value of 4.79 is 123.8% above this industry median. Based on the distribution chart, Formosa Plastics ranks #1174 out of 1242 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Formosa Plastics has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Plastics' Debt-to-EBITDA compare to LIN and SHW?
According to the Chemicals industry distribution chart, Formosa Plastics ranks #1174 out of 1242 companies for Debt-to-EBITDA. This places Formosa Plastics in the lower half of its industry. The industry median Debt-to-EBITDA is 2.14. Formosa Plastics' value of 4.79 is 123.8% above this benchmark. Historically, Formosa Plastics' own Debt-to-EBITDA has ranged from 0.59 to 36.77 over the past decade. While the company's 10-year median is 1.63 vs. the industry median of 2.14, Formosa Plastics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Chemicals company?
The median Debt-to-EBITDA among Chemicals companies is 2.14, based on 1,242 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Plastics's current Debt-to-EBITDA of 4.79 is 123.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Formosa Plastics. For the Chemicals industry, the median Debt-to-EBITDA is 2.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Plastics's current Debt-to-EBITDA is 4.79, which is 194% above median its own 10-year median of 1.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Plastics stock overvalued right now?
Based on GuruFocus' analysis, Formosa Plastics (TPE:1301) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$46.36, compared to a current price of NT$60.00 — trading 29.4% above its estimated fair value. The current Debt-to-EBITDA is 4.79, which is 194% above median its 10-year median of 1.63 and 123.8% above the Chemicals industry median of 2.14. Formosa Plastics' overall GF Score™ is 66/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Formosa Plastics (TPE:1301), the current Debt-to-EBITDA is 4.79 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Formosa Plastics (TPE:1301) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Plastics stock appears to be overvalued.
The current stock price of NT$60.00 is trading 29.4% above its estimated GF Value™ of NT$46.36.
GuruFocus considers Formosa Plastics to be Modestly Overvalued.
Key valuation signals for TPE:1301:
Debt-to-EBITDA: 4.79 (194% above median its 10-year median of 1.63)
GF Value™: NT$46.36 vs. price of NT$60.00 (29.4% above fair value)
Industry Position: 123.8% above the Chemicals median (#1174 of 1242)
No single metric tells the full story. See the TPE:1301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Plastics Corp is a holding company that, through its subsidiaries, manufactures and sells plastic-based products, chemical fibers, and petrochemicals. The company operates in five reportable segments: Plastics Division, Polyolefins Division, Polypropylene Division, Tairylan Division, and Chemical Division. The majority of revenue is derived from the Plastic division. Geographically, the company operates in Taiwan, mainland China, and other countries, with the maximum revenue generated from Taiwan.
66GF Score
Get the complete analysis for TPE:1301
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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