Formosa Plastics (TPE:1301) 5-Year Yield-on-Cost %: 0.12 (As of Aug. 01, 2026) — 80% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

TPE:1301 Formosa Plastics Corp TPE:1301
71 GF Score
Price NT$55.00
GF Value NT$45.41
Valuation Modestly Overvalued
! 9 Warning Signs
View Full Analysis

What is Formosa Plastics 5-Year Yield-on-Cost %?

Formosa Plastics TPE:1301 +1.85% 71 5-Year Yield-on-Cost % is 0.12 as of Aug. 01, 2026, which is 80% below its 10-year median of 0.60. GuruFocus rates TPE:1301 with a GF Score™ of 71/100 and a GF Value™ of NT$45.41 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,058 Chemicals companies, Formosa Plastics ranks worse than 95.56% on this metric.

Formosa Plastics's yield on cost for the quarter that ended in Mar. 2026 was 0.12.


The historical rank and industry rank for Formosa Plastics's 5-Year Yield-on-Cost % or its related term are showing as below:

TPE:1301' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.11   Med: 0.6   Max: 1.67
Current: 0.12


During the past 13 years, Formosa Plastics's highest Yield on Cost was 1.67. The lowest was 0.11. And the median was 0.60.


TPE:1301's 5-Year Yield-on-Cost % is ranked worse than
95.56% of 1058 companies
in the Chemicals industry
Industry Median: 1.85 vs TPE:1301: 0.12

Formosa Plastics  (TPE:1301) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Formosa Plastics 5-Year Yield-on-Cost % Related Terms


TPE:1301 vs LIN, SHW, ECL: 5-Year Yield-on-Cost % Comparison

For the Specialty Chemicals subindustry, Formosa Plastics's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 Plastics 5-Year Yield-on-Cost % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Formosa Plastics's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Formosa Plastics's 5-Year Yield-on-Cost % falls into.


TPE:1301
71GF Score
Formosa Plastics Corp TPE:1301
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Formosa Plastics 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Formosa Plastics is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 0.12 mean?
Formosa Plastics (TPE:1301) has a 5-Year Yield-on-Cost % of 0.12 as of Aug. 01, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Formosa Plastics and its competitors. This is 80% below median its historical median of 0.60. Over the past decade, Formosa Plastics' 5-Year Yield-on-Cost % has ranged from 0.11 to 1.67. According to the industry distribution chart, Formosa Plastics ranks #1011 out of 1058 companies in the Chemicals industry, placing it in the top 95.6%.
Is Formosa Plastics' 5-Year Yield-on-Cost % too high?
Formosa Plastics' current 5-Year Yield-on-Cost % of 0.12 is 80% below median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 1.67. The Chemicals industry median 5-Year Yield-on-Cost % is 1.85. Formosa Plastics' value of 0.12 is 93.5% below this industry median. Based on the distribution chart, Formosa Plastics ranks #1011 out of 1058 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Formosa Plastics has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Plastics' 5-Year Yield-on-Cost % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Formosa Plastics ranks #1011 out of 1058 companies for 5-Year Yield-on-Cost %. This places Formosa Plastics in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.85. Formosa Plastics' value of 0.12 is 93.5% below this benchmark. Historically, Formosa Plastics' own 5-Year Yield-on-Cost % has ranged from 0.11 to 1.67 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 1.85, Formosa Plastics 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 5-Year Yield-on-Cost % for a Chemicals company?
The median 5-Year Yield-on-Cost % among Chemicals companies is 1.85, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Plastics's current 5-Year Yield-on-Cost % of 0.12 is 93.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Formosa Plastics and its competitors. For the Chemicals industry, the median 5-Year Yield-on-Cost % is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Plastics's current 5-Year Yield-on-Cost % is 0.12, which is 80% below median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Plastics stock overvalued right now?
Based on GuruFocus' analysis, Formosa Plastics (TPE:1301) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$45.41, compared to a current price of NT$55.00 — trading 21.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.12, which is 80% below median its 10-year median of 0.60 and 93.5% below the Chemicals industry median of 1.85. Formosa Plastics' overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Formosa Plastics (TPE:1301), the current 5-Year Yield-on-Cost % is 0.12 as of Aug. 01, 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 Plastics (TPE:1301) Overvalued in 2026?

Based on GuruFocus' analysis, Formosa Plastics stock appears to be overvalued. The current stock price of NT$55.00 is trading 21.1% above its estimated GF Value™ of NT$45.41. GuruFocus considers Formosa Plastics to be Modestly Overvalued.

Key valuation signals for TPE:1301:

  • 5-Year Yield-on-Cost %: 0.12 (80% below median its 10-year median of 0.60)
  • GF Value™: NT$45.41 vs. price of NT$55.00 (21.1% above fair value)
  • GF Score™: 71/100 with 9 warning signs
  • Industry Position: 93.5% below the Chemicals median (#1011 of 1058)

No single metric tells the full story. See the TPE:1301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Formosa Plastics Business Description

Address No. 100, Shuiguan Road, Renwu District, Kaohsiung, TWN, 814
Formosa Plastics Corp is a holding company that, through its subsidiaries, manufactures and sells plastic-based products, chemical fibers, and petrochemicals. The company operates in five reportable segments: Plastics Division, Polyolefins Division, Polypropylene Division, Tairylan Division, and Chemical Division. The majority of revenue is derived from the Plastic division. Geographically, the company operates in Taiwan, mainland China, and other countries, with the maximum revenue generated from Taiwan.
71GF Score

Get the complete analysis for TPE:1301

5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$55.00
Price
NT$45.41
GF Value