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Formosa PetrochemicalTPE:6505 +9.97%83 PB Ratio is 1.95 as of Jul. 15, 2026, which is 29% below its 10-year median of 2.73. GuruFocus rates TPE:6505 with a GF Score™ of 83/100 and a GF Value™ of NT$57.90 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 926 Oil & Gas companies, Formosa Petrochemical ranks worse than 60.04% on this metric.
Formosa Petrochemical Corp stock PB Ratio (=1.57) is close to 1-year high of 1.66.
The historical rank and industry rank for Formosa Petrochemical's PB Ratio or its related term are showing as below:
TPE:6505'
s PB Ratio Range Over the Past 10 Years
Min: 1.06 Med: 2.73 Max: 4.15
Current: 1.94
During the past 13 years, Formosa Petrochemical's highest PB Ratio was 4.15. The lowest was 1.06. And the median was 2.73.
TPE:6505's PB Ratio is ranked worse than 60.04% of 926
companies
in the Oil & Gas industry
Industry Median: 1.45
vs TPE:6505: 1.94
During the past 12 months, Formosa Petrochemical's average Book Value Per Share Growth Rate was 19.80% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 4.40% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 0.70% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 1.10% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Formosa Petrochemical was 12.50% per year. The lowest was -6.00% per year. And the median was 2.30% per year.
Back to Basics: PB Ratio
Formosa Petrochemical (TPE:6505) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
* 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 PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's PB Ratio distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Formosa Petrochemical (TPE:6505) has a PB Ratio of 1.95 as of Jul. 15, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Formosa Petrochemical and its competitors. This is 29% below median its historical median of 2.73. Over the past decade, Formosa Petrochemical's PB Ratio has ranged from 1.06 to 4.15. According to the industry distribution chart, Formosa Petrochemical ranks #556 out of 926 companies in the Oil & Gas industry, placing it in the top 60%.
Is Formosa Petrochemical's PB Ratio too high?
Formosa Petrochemical's current PB Ratio of 1.95 is 29% below median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 4.15. The Oil & Gas industry median PB Ratio is 1.45. Formosa Petrochemical's value of 1.95 is 34.5% above this industry median. Based on the distribution chart, Formosa Petrochemical ranks #556 out of 926 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's PB Ratio compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #556 out of 926 companies for PB Ratio. This places Formosa Petrochemical in the lower half of its industry. The industry median PB Ratio is 1.45. Formosa Petrochemical's value of 1.95 is 34.5% above this benchmark. Historically, Formosa Petrochemical's own PB Ratio has ranged from 1.06 to 4.15 over the past decade. While the company's 10-year median is 2.73 vs. the industry median of 1.45, Formosa Petrochemical 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 PB Ratio for an Oil & Gas company?
The median PB Ratio among Oil & Gas companies is 1.45, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Petrochemical's current PB Ratio of 1.95 is 34.5% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median PB Ratio is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current PB Ratio is 1.95, which is 29% below median its own 10-year median of 2.73. 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$57.90, compared to a current price of NT$72.80 — trading 25.7% above its estimated fair value. The current PB Ratio is 1.95, which is 29% below median its 10-year median of 2.73 and 34.5% above the Oil & Gas industry median of 1.45. Formosa Petrochemical's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Formosa Petrochemical (TPE:6505), the current PB Ratio is 1.95 as of Jul. 15, 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$72.80 is trading 25.7% above its estimated GF Value™ of NT$57.90.
GuruFocus considers Formosa Petrochemical to be Modestly Overvalued.
Key valuation signals for TPE:6505:
PB Ratio: 1.95 (29% below median its 10-year median of 2.73)
GF Value™: NT$57.90 vs. price of NT$72.80 (25.7% above fair value)
Industry Position: 34.5% above the Oil & Gas median (#556 of 926)
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.
83GF Score
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