Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Formosa Petrochemical's Net-Net Working Capital for the quarter that ended in Jun. 2026 was NT$21.96.
The industry rank for Formosa Petrochemical's Net-Net Working Capital or its related term are showing as below:
TPE:6505's Price-to-Net-Net-Working-Capital is ranked better than 64.95% of 194
companies
in the Oil & Gas industry
Industry Median: 6.23
vs TPE:6505: 3.32
Formosa Petrochemical (TPE:6505) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Formosa Petrochemical Net-Net Working Capital Related Terms
Formosa Petrochemical Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Formosa Petrochemical's Net-Net Working Capital 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.
Formosa Petrochemical Net-Net Working Capital Chart
TPE:6505 vs MPC, VLO, PSX: Net-Net Working Capital Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's Price-to-Net-Net-Working-Capital 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of NT$21.96 mean?
Formosa Petrochemical (TPE:6505) has a Net-Net Working Capital of NT$21.96 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Formosa Petrochemical According to the industry distribution chart, Formosa Petrochemical ranks #68 out of 194 companies in the Oil & Gas industry, placing it in the top 35.1%.
Is Formosa Petrochemical's Net-Net Working Capital too high?
Formosa Petrochemical's current Net-Net Working Capital is NT$21.96. Based on the distribution chart, Formosa Petrochemical ranks #68 out of 194 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Net-Net Working Capital compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #68 out of 194 companies for Net-Net Working Capital. This puts Formosa Petrochemical in the upper half of its industry. The industry median Net-Net Working Capital is 6.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Oil & Gas company?
The median Net-Net Working Capital among Oil & Gas companies is 6.23, based on 194 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Formosa Petrochemical For the Oil & Gas industry, the median Net-Net Working Capital is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Net-Net Working Capital is NT$21.96. 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$55.52, compared to a current price of NT$73.00 — trading 31.5% above its estimated fair value. The current Net-Net Working Capital is NT$21.96. Formosa Petrochemical's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Formosa Petrochemical (TPE:6505), the current Net-Net Working Capital is NT$21.96 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be overvalued.
The current stock price of NT$73.00 is trading 31.5% above its estimated GF Value™ of NT$55.52.
GuruFocus considers Formosa Petrochemical to be Significantly Overvalued.
Key valuation signals for TPE:6505:
Net-Net Working Capital: NT$21.96
GF Value™: NT$55.52 vs. price of NT$73.00 (31.5% above fair value)
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.
76GF Score
Get the complete analysis for TPE:6505
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:6505 has been successfully added to your 
