(EWBC) East West Bancorp - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 16.890m USD | Total Return: 39.8% in 12m
Avg Turnover: 107M
EPS Trend: 47.4%
Qual. Beats: 1
Rev. Trend: 79.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
East West Bancorp, Inc. (EWBC) is a Pasadena-based bank holding company that operates East West Bank, a regional financial institution specializing in commercial and consumer banking. Its business model focuses on bridging financial services between the United States and Greater China, providing trade finance and cross-border transaction support. The company operates through three primary segments: Commercial Banking, Consumer and Business Banking, and Treasury and Other.
As a regional bank, EWBC generates revenue primarily through the net interest margin, which is the spread between interest earned on loans and interest paid on deposits. The commercial real estate and commercial business lending sectors represent significant portions of the regional banking loan mix, often requiring specialized risk management for localized economic shifts. For a deeper look into these valuation metrics, consider reviewing the detailed data on ValueRay.
- Net interest margin sensitivity to Federal Reserve benchmark rate fluctuations
- Trade volume and geopolitical stability between the United States and China
- Commercial real estate loan portfolio performance and credit loss provisions
- Deposit cost management amid competitive pressure for low-cost retail funding
- Expansion of trade finance and treasury management services for cross-border clients
| Net Income: 1.39b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.89 > 1.0 |
| NWC/Revenue: -13.12% < 20% (prev -1.47k%; Δ 1.46k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 1.65b > Net Income 1.39b |
| Net Debt (3.17b) to EBITDA (2.05b): 1.55 < 3 |
| Current Ratio: 0.61 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.9m) vs 12m ago -0.27% < -2% |
| Gross Margin: 61.75% > 18% (prev 0.48%; Δ 6.13k% > 0.5%) |
| Asset Turnover: 5.95% > 50% (prev 5.30%; Δ 0.66% > 0%) |
| Interest Coverage Ratio: 1.08 > 6 (EBITDA TTM 2.05b / Interest Expense TTM 1.69b) |
| A: -0.01 (Total Current Assets 973.2m - Total Current Liabilities 1.59b) / Total Assets 82.9b |
| B: 0.10 (Retained Earnings 8.55b / Total Assets 82.9b) |
| C: 0.02 (EBIT TTM 1.82b / Avg Total Assets 79.5b) |
| D: 0.11 (Book Value of Equity 8.16b / Total Liabilities 73.9b) |
| Altman-Z'' = 0.56 = B |
As of May 24, 2026, the stock is trading at USD 123.00 with a total of 490,264 shares traded.
Over the past week, the price has changed by +3.11%,
over one month by -0.20%,
over three months by +6.73% and
over the past year by +39.81%.
East West Bancorp has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy EWBC.
- StrongBuy: 5
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 137.2 | 11.5% |
P/E Forward = 14.9031
P/S = 6.0642
P/B = 1.841
P/EG = 5.5751
Revenue TTM = 4.73b USD
EBIT TTM = 1.82b USD
EBITDA TTM = 2.05b USD
Long Term Debt = 3.04b USD (from longTermDebt, last quarter)
Short Term Debt = 1.59b USD (from shortTermDebt, last quarter)
Debt = 3.83b USD (from shortLongTermDebtTotal, last quarter) + Leases 148.7m
Net Debt = 3.17b USD (calculated: Debt 3.83b - CCE 657.1m)
Enterprise Value = 20.1b USD (16.9b + Debt 3.83b - CCE 657.1m)
Interest Coverage Ratio = 1.08 (Ebit TTM 1.82b / Interest Expense TTM 1.69b)
EV/FCF = 6.46x (Enterprise Value 20.1b / FCF TTM 3.10b)
FCF Yield = 15.47% (FCF TTM 3.10b / Enterprise Value 20.1b)
FCF Margin = 65.58% (FCF TTM 3.10b / Revenue TTM 4.73b)
Net Margin = 29.43% (Net Income TTM 1.39b / Revenue TTM 4.73b)
Gross Margin = 61.75% ((Revenue TTM 4.73b - Cost of Revenue TTM 1.81b) / Revenue TTM)
Gross Margin QoQ = 63.74% (prev 64.63%)
Tobins Q-Ratio = 0.24 (Enterprise Value 20.1b / Total Assets 82.9b)
Interest Expense / Debt = 44.25% (Interest Expense 1.69b / Debt 3.83b)
Taxrate = 21.78% (99.6m / 457.4m)
NOPAT = 1.42b (EBIT 1.82b * (1 - 21.78%))
Current Ratio = 0.02 (Total Current Assets 973.2m / Total Current Liabilities 56.7b)
Debt / Equity = 0.43 (Debt 3.83b / totalStockholderEquity, last quarter 9.00b)
Debt / EBITDA = 1.55 (Net Debt 3.17b / EBITDA 2.05b)
Debt / FCF = 1.02 (Net Debt 3.17b / FCF TTM 3.10b)
Total Stockholder Equity = 8.67b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.75% (Net Income 1.39b / Total Assets 82.9b)
RoE = 16.06% (Net Income TTM 1.39b / Total Stockholder Equity 8.67b)
RoCE = 15.56% (EBIT 1.82b / Capital Employed (Equity 8.67b + L.T.Debt 3.04b))
RoIC = 1.72% (NOPAT 1.42b / Invested Capital 82.9b)
WACC = 14.58% (E(16.9b)/V(20.7b) * Re(10.04%) + D(3.83b)/V(20.7b) * Rd(44.25%) * (1-Tc(0.22)))
Discount Rate = 10.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -0.79%
[DCF] Terminal Value 60.49% ; FCFF base≈2.43b ; Y1≈2.78b ; Y5≈4.09b
[DCF] Fair Price = 189.1 (EV 29.1b - Net Debt 3.17b = Equity 25.9b / Shares 137.0m; r=14.58% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 47.43 | EPS CAGR: 3.36% | SUE: 1.17 | # QB: 1
Revenue Correlation: 79.07 | Revenue CAGR: 8.56% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.66 | Chg30d=+4.64% | Revisions=+79% | Analysts=15
EPS next Quarter (2026-09-30): EPS=2.71 | Chg30d=+3.17% | Revisions=+58% | Analysts=15
EPS current Year (2026-12-31): EPS=10.65 | Chg30d=+3.68% | Revisions=+78% | GrowthEPS=+12.3% | GrowthRev=+8.8%
EPS next Year (2027-12-31): EPS=11.30 | Chg30d=+2.81% | Revisions=+68% | GrowthEPS=+6.1% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: +79%