East West Valuation
| EWBC Stock | USD 109.68 0.37 0.34% |
At this time, the firm appears to be overvalued. East West Bancorp shows a prevailing Real Value of $93.06 per share. The current price of the firm is $109.68. Our model computes the value of East West Bancorp from reviewing the firm fundamentals such as Profit Margin of 0.46 %, current valuation of 13.66 B, and Shares Outstanding of 138.63 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting East West's valuation include:
Price Book 1.9838 | Enterprise Value 13.7 B | Price Sales 6.3204 | Forward PE 12.7226 | Trailing PE 13.8485 |
Overvalued
Today
Please note that East West's price fluctuation is very steady at this time. Calculation of the real value of East West Bancorp is based on 3 months time horizon. Increasing East West's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since East West is currently traded on the exchange, buyers and sellers on that exchange determine the market value of East Stock. However, East West's 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 109.68 | Real 93.06 | Target 65.75 | Hype 109.48 | Naive 112.65 |
The real value of East Stock, also known as its intrinsic value, is the underlying worth of East West Bancorp Company, which is reflected in its stock price. It is based on East West's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of East West's 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, or news.
Estimating the potential upside or downside of East West Bancorp helps investors to forecast how East 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 East West more accurately as focusing exclusively on East West's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use East West's intrinsic value based on its ongoing forecasts of East West's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against East West's closest peers. If more than one evaluation category is relevant for East West we suggest using both methods to arrive at a better estimate.
East West Cash |
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East Valuation Trend
Comparing East West's enterprise value against its market capitalization is a good way to estimate the value of East West Bancorp uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
East Revenue by Product
East West Total Value Analysis
East West Bancorp is currently forecasted to have valuation of 13.66 B with market capitalization of 15.26 B, debt of 4.76 B, and cash on hands of 3.69 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the East West fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
13.66 B | 15.26 B | 4.76 B | 3.69 B |
East West Investor Information
About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.98. Some equities with similar Price to Book (P/B) outperform the market in the long run. East West Bancorp recorded earning per share (EPS) of 7.92. The entity last dividend was issued on the 4th of November 2024. The firm had 2:1 split on the 22nd of June 2004. Based on the key indicators related to East West's liquidity, profitability, solvency, and operating efficiencyBased on the analysis of, East West Bancorp is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.39 | 0.7393 |
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| Total Cash From Operating Activities | 1.5 B | 1.4 B |
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| Operating Income | 1.8 B | 1.7 B |
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East West Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. East West has an asset utilization ratio of 3.39 percent. This indicates that the Company is making $0.0339 for each dollar of assets. An increasing asset utilization means that East West Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.East West Ownership Allocation
East West holds a total of 138.63 Million outstanding shares. The majority of East West Bancorp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in East West Bancorp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in East West. Please pay attention to any change in the institutional holdings of East West Bancorp as this could imply that something significant has changed or is about to change at the company. 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.East West Profitability Analysis
The company reported the previous year's revenue of 2.36 B. Net Income was 1.16 B with profit before overhead, payroll, taxes, and interest of 2.16 B.East West Past Distributions to stockholders
| 15th of November 2024 | ||
| 16th of August 2024 | ||
| 17th of May 2024 | ||
| 15th of February 2024 | ||
| 15th of November 2023 | ||
| 15th of August 2023 | ||
| 15th of May 2023 | ||
| 21st of February 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates East West's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in East West and how it compares across the competition.
About East West Valuation
The stock valuation mechanism determines East West's current worth on a weekly basis. Our valuation model uses a comparative analysis of East West. We calculate exposure to East West's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of East West's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4 B | 4.2 B | |
| Pretax Profit Margin | 0.62 | 0.36 | |
| Operating Profit Margin | 0.74 | 0.39 | |
| Net Profit Margin | 0.49 | 0.26 | |
| Gross Profit Margin | 1.51 | 0.78 |
East West Quarterly Retained Earnings |
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A single share of East West represents a small ownership stake in the entity. As a stockholder of East, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
East West Dividends Analysis For Valuation
At present, East West's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 6.42, whereas Dividend Payout Ratio is forecasted to decline to 0.14. . At present, East West's Earnings Yield is projected to increase slightly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 15.33, whereas Retained Earnings Total Equity is forecasted to decline to about 2.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 274.6 M | 288.3 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.24 | 0.14 | |
| Dividend Paid And Capex Coverage Ratio | 5.19 | 6.42 |
There are various types of dividends East West can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of East shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from East West Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When East pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of East West by the value of the dividends paid out.
East West Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 141.9 M | |
| Quarterly Earnings Growth Y O Y | 0.059 | |
| Forward Price Earnings | 12.7226 |
East West Current Valuation Indicators
Valuation refers to the process of determining the present value of East West Bancorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value East we look at many different elements of the entity such as East's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as East West, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use East West's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes East West's worth.Complementary Tools for East Stock analysis
When running East West's price analysis, check to measure East West's 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 East West is operating at the current time. Most of East West's value examination focuses on studying past and present price action to predict the probability of East West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move East West's price. Additionally, you may evaluate how the addition of East West to your portfolios can decrease your overall portfolio volatility.
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