Formosa Chemicals Valuation
| 1326 Stock | TWD 33.85 0.95 2.73% |
At this time, the firm appears to be overvalued. Formosa Chemicals Fibre shows a prevailing Real Value of NT$28.43 per share. The current price of the firm is NT$33.85. Our model computes the value of Formosa Chemicals Fibre from reviewing the firm fundamentals such as Profit Margin of 0.05 %, shares outstanding of 5.85 B, and Current Valuation of 425.8 B as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Formosa Chemicals' price fluctuation is very steady at this time. Calculation of the real value of Formosa Chemicals Fibre is based on 3 months time horizon. Increasing Formosa Chemicals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Formosa stock is determined by what a typical buyer is willing to pay for full or partial control of Formosa Chemicals Fibre. Since Formosa Chemicals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Formosa Stock. However, Formosa Chemicals' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 33.85 | Real 28.43 | Hype 33.85 | Naive 32.62 |
The intrinsic value of Formosa Chemicals' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Formosa Chemicals' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Formosa Chemicals Fibre helps investors to forecast how Formosa stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Formosa Chemicals more accurately as focusing exclusively on Formosa Chemicals' fundamentals will not take into account other important factors: Formosa Chemicals Total Value Analysis
Formosa Chemicals Fibre is presently anticipated to have takeover price of 425.8 B with market capitalization of 417.62 B, debt of 62.68 B, and cash on hands of 136.71 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Formosa Chemicals fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
425.8 B | 417.62 B | 62.68 B | 136.71 B |
Formosa Chemicals Investor Information
About 42.0% of the company shares are owned by insiders or employees . The company has Price-to-Book (P/B) ratio of 1.23. In the past many companies with similar price-to-book ratios have beat the market. Formosa Chemicals Fibre last dividend was issued on the 28th of June 2022. The entity had 1:1 split on the 22nd of July 2013. Based on the key indicators related to Formosa Chemicals' liquidity, profitability, solvency, and operating efficiency, Formosa Chemicals Fibre is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Formosa Chemicals Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Formosa indicates not a very effective usage of assets in December.Formosa Chemicals Ownership Allocation
Formosa Chemicals holds a total of 5.85 Billion outstanding shares. Formosa Chemicals Fibre retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Formosa Chemicals Profitability Analysis
The company reported the revenue of 365.81 B. Net Income was 38.36 B with profit before overhead, payroll, taxes, and interest of 53.44 B.About Formosa Chemicals Valuation
Our relative valuation model uses a comparative analysis of Formosa Chemicals. We calculate exposure to Formosa Chemicals's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Formosa Chemicals's related companies.Formosa Chemicals Fibre Corporation produces and sells petrochemical products, nylon fibers, and rayon staple fibers in Taiwan, China, and internationally. Formosa Chemicals Fibre Corporation was founded in 1965 and is based in Changhua, Taiwan. FORMOSA CHEMICAL operates under Chemicals classification in Taiwan and is traded on Taiwan Stock Exchange.
8 Steps to conduct Formosa Chemicals' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Formosa Chemicals' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Formosa Chemicals' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Formosa Chemicals' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Formosa Chemicals' revenue streams: Identify Formosa Chemicals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Formosa Chemicals' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Formosa Chemicals' growth potential: Evaluate Formosa Chemicals' management, business model, and growth potential.
- Determine Formosa Chemicals' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Formosa Chemicals' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Formosa Stock Analysis
When running Formosa Chemicals' price analysis, check to measure Formosa Chemicals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formosa Chemicals is operating at the current time. Most of Formosa Chemicals' value examination focuses on studying past and present price action to predict the probability of Formosa Chemicals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Chemicals' price. Additionally, you may evaluate how the addition of Formosa Chemicals to your portfolios can decrease your overall portfolio volatility.