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Formosa PetrochemicalTPE:6505 +0.28%82 EV-to-EBIT is 7.01 as of Aug. 18, 2026, which is 53% below its 10-year median of 14.84. GuruFocus rates TPE:6505 with a GF Score™ of 82/100 and a GF Value™ of NT$55.47 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 709 Oil & Gas companies, Formosa Petrochemical ranks worse than 61.92% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Formosa Petrochemical's Enterprise Value for the quarter that ended in Jun. 2026 was NT$334,017 Mil.
Formosa Petrochemical's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was NT$69,373 Mil.
* 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.
* 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.
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's EV-to-EBIT falls into.
Formosa Petrochemical's current Enterprise Value is NT$486,171 Mil.
Formosa Petrochemical's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was NT$69,373 Mil.
* 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 Petrochemical (TPE:6505) has a EV-to-EBIT of 7.01 as of Aug. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Formosa Petrochemical and its competitors. This is 53% below median its historical median of 14.84. According to the industry distribution chart, Formosa Petrochemical ranks #439 out of 709 companies in the Oil & Gas industry, placing it in the top 61.9%.
Is Formosa Petrochemical's EV-to-EBIT too high?
Formosa Petrochemical's current EV-to-EBIT of 7.01 is 53% below median its 10-year median of 14.84. The Oil & Gas industry median EV-to-EBIT is 11.48. Formosa Petrochemical's value of 7.01 is 38.9% below this industry median. Based on the distribution chart, Formosa Petrochemical ranks #439 out of 709 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's EV-to-EBIT compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #439 out of 709 companies for EV-to-EBIT. This places Formosa Petrochemical in the lower half of its industry. The industry median EV-to-EBIT is 11.48. Formosa Petrochemical's value of 7.01 is 38.9% below this benchmark. While the company's 10-year median is 14.84 vs. the industry median of 11.48, 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 EV-to-EBIT for an Oil & Gas company?
The median EV-to-EBIT among Oil & Gas companies is 11.48, based on 709 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Petrochemical's current EV-to-EBIT of 7.01 is 38.9% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median EV-to-EBIT is 11.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current EV-to-EBIT is 7.01, which is 53% below median its own 10-year median of 14.84. 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 Modestly Overvalued. The stock's GF Value™ is NT$55.47, compared to a current price of NT$71.10 — trading 28.2% above its estimated fair value. The current EV-to-EBIT is 7.01, which is 53% below median its 10-year median of 14.84 and 38.9% below the Oil & Gas industry median of 11.48. Formosa Petrochemical's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Formosa Petrochemical (TPE:6505), the current EV-to-EBIT is 7.01 as of Aug. 18, 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 28.2% above its estimated GF Value™ of NT$55.47.
GuruFocus considers Formosa Petrochemical to be Modestly Overvalued.
Key valuation signals for TPE:6505:
EV-to-EBIT: 7.01 (53% below median its 10-year median of 14.84)
GF Value™: NT$55.47 vs. price of NT$71.10 (28.2% above fair value)
Industry Position: 38.9% below the Oil & Gas median (#439 of 709)
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.
82GF Score
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