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Formosa PetrochemicalTPE:6505 +3.04%79 Debt-to-EBITDA is 0.20 as of Mar. 2026, which is 75% below its 10-year median of 0.79. GuruFocus rates TPE:6505 with a GF Score™ of 79/100 and a GF Value™ of NT$49.64 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 715 Oil & Gas companies, Formosa Petrochemical ranks better than 83.64% 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 Petrochemical's Debt-to-EBITDA or its related term are showing as below:
TPE:6505'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.19 Med: 0.79 Max: 1.81
Current: 0.48
During the past 13 years, the highest Debt-to-EBITDA Ratio of Formosa Petrochemical was 1.81. The lowest was 0.19. And the median was 0.79.
TPE:6505's Debt-to-EBITDA is ranked better than 83.64% of 715
companies
in the Oil & Gas industry
Industry Median: 2
vs TPE:6505: 0.48
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 Petrochemical Debt-to-EBITDA Related Terms
Formosa Petrochemical Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Formosa Petrochemical'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:6505 vs MPC, VLO, PSX: Debt-to-EBITDA Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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 Petrochemical Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical'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 Petrochemical (TPE:6505) has a Debt-to-EBITDA of 0.20 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 Petrochemical. This is 75% below median its historical median of 0.79. Over the past decade, Formosa Petrochemical's Debt-to-EBITDA has ranged from 0.19 to 1.81. According to the industry distribution chart, Formosa Petrochemical ranks #117 out of 715 companies in the Oil & Gas industry, placing it in the top 16.4%.
Is Formosa Petrochemical's Debt-to-EBITDA too high?
Formosa Petrochemical's current Debt-to-EBITDA of 0.20 is 75% below median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 1.81. The Oil & Gas industry median Debt-to-EBITDA is 2.00. Formosa Petrochemical's value of 0.20 is 90% below this industry median. Based on the distribution chart, Formosa Petrochemical ranks #117 out of 715 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Petrochemical has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Debt-to-EBITDA compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #117 out of 715 companies for Debt-to-EBITDA. This places Formosa Petrochemical in the top 16% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.00. Formosa Petrochemical's value of 0.20 is 90% below this benchmark. Historically, Formosa Petrochemical's own Debt-to-EBITDA has ranged from 0.19 to 1.81 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 2.00, Formosa Petrochemical has consistently been below 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 an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.00, based on 715 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 Petrochemical's current Debt-to-EBITDA of 0.20 is 90% below 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 Petrochemical. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Debt-to-EBITDA is 0.20, which is 75% below median its own 10-year median of 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$49.64, compared to a current price of NT$71.10 — trading 43.2% above its estimated fair value. The current Debt-to-EBITDA is 0.20, which is 75% below median its 10-year median of 0.79 and 90% below the Oil & Gas industry median of 2.00. Formosa Petrochemical's overall GF Score™ is 79/100 with 2 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 Petrochemical (TPE:6505), the current Debt-to-EBITDA is 0.20 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be overvalued.
The current stock price of NT$71.10 is trading 43.2% above its estimated GF Value™ of NT$49.64.
GuruFocus considers Formosa Petrochemical to be Significantly Overvalued.
Key valuation signals for TPE:6505:
Debt-to-EBITDA: 0.20 (75% below median its 10-year median of 0.79)
GF Value™: NT$49.64 vs. price of NT$71.10 (43.2% above fair value)
Industry Position: 90% below the Oil & Gas median (#117 of 715)
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
79GF Score
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