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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Formosa Pharmaceuticals's Debt-to-Equity or its related term are showing as below:
TPE:6838'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.02 Max: 0.03
Current: 0.02
During the past 7 years, the highest Debt-to-Equity Ratio of Formosa Pharmaceuticals was 0.03. The lowest was 0.01. And the median was 0.02.
TPE:6838's Debt-to-Equity is ranked better than 87.86% of 964
companies
in the Biotechnology industry
Industry Median: 0.16
vs TPE:6838: 0.02
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Formosa Pharmaceuticals Debt-to-Equity Related Terms
Formosa Pharmaceuticals Debt-to-Equity Historical Data
* 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:6838 vs VRTX, REGN, MRNA: Debt-to-Equity Comparison
For the Biotechnology subindustry, Formosa Pharmaceuticals's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Pharmaceuticals Debt-to-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Formosa Pharmaceuticals's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Pharmaceuticals's Debt-to-Equity 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.
Formosa Pharmaceuticals (TPE:6838) has a Debt-to-Equity of 0.02 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formosa Pharmaceuticals and its competitors. This is near median its historical median of 0.02. Over the past decade, Formosa Pharmaceuticals' Debt-to-Equity has ranged from 0.01 to 0.03. According to the industry distribution chart, Formosa Pharmaceuticals ranks #117 out of 964 companies in the Biotechnology industry, placing it in the top 12.1%.
Is Formosa Pharmaceuticals' Debt-to-Equity too high?
Formosa Pharmaceuticals' current Debt-to-Equity of 0.02 is near median its 10-year median of 0.02. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.03. The Biotechnology industry median Debt-to-Equity is 0.16. Formosa Pharmaceuticals' value of 0.02 is 87.5% below this industry median. Based on the distribution chart, Formosa Pharmaceuticals ranks #117 out of 964 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Pharmaceuticals has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Formosa Pharmaceuticals' Debt-to-Equity compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Formosa Pharmaceuticals ranks #117 out of 964 companies for Debt-to-Equity. This places Formosa Pharmaceuticals in the top 12% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.16. Formosa Pharmaceuticals' value of 0.02 is 87.5% below this benchmark. Historically, Formosa Pharmaceuticals' own Debt-to-Equity has ranged from 0.01 to 0.03 over the past decade. While the company's 10-year median is 0.02 vs. the industry median of 0.16, Formosa Pharmaceuticals 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-Equity for a Biotechnology company?
The median Debt-to-Equity among Biotechnology companies is 0.16, based on 964 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Pharmaceuticals's current Debt-to-Equity of 0.02 is 87.5% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formosa Pharmaceuticals and its competitors. For the Biotechnology industry, the median Debt-to-Equity is 0.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Pharmaceuticals's current Debt-to-Equity is 0.02, which is near median its own 10-year median of 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Formosa Pharmaceuticals (TPE:6838) is currently considered Possible Value Trap. The stock's GF Value™ is NT$66.58, compared to a current price of NT$23.60 — trading 64.6% below its estimated fair value. The current Debt-to-Equity is 0.02, which is near median its 10-year median of 0.02 and 87.5% below the Biotechnology industry median of 0.16. Formosa Pharmaceuticals' overall GF Score™ is 51/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Formosa Pharmaceuticals (TPE:6838), the current Debt-to-Equity is 0.02 as of Jun. 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 Pharmaceuticals (TPE:6838) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Pharmaceuticals stock appears to be undervalued.
The current stock price of NT$23.60 is trading 64.6% below its estimated GF Value™ of NT$66.58.
GuruFocus considers Formosa Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TPE:6838:
Debt-to-Equity: 0.02 (near median its 10-year median of 0.02)
GF Value™: NT$66.58 vs. price of NT$23.60 (64.6% below fair value)
Industry Position: 87.5% below the Biotechnology median (#117 of 964)
No single metric tells the full story. See the TPE:6838 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Pharmaceuticals Inc is engaged in new drug development and transfers. Its Product pipeline includes TSY-110, TSY-120, TSY-310, APP13007 and APP13002.
51GF Score
Get the complete analysis for TPE:6838
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