East West Bancorp Inc
NASDAQ:EWBC
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East West Bancorp Inc
NASDAQ:EWBC
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Intrinsic Value
The intrinsic value of East West Bancorp Inc (EWBC) under the Base Case is 135.94 USD per share.
Compared with the current market price of 132.39 USD, the stock appears
Undervalued by 3% .
The intrinsic value is calculated using the DCF method. The model assumes net margin jumps to 51% in 2026, higher than in any of the last six years, before easing to 48% by 2031. Revenue grows about 6% a year over the next five years, less than half its five-year pace of 13%. The value of the years after 2031 is tied to revenue, so margins count only until then.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What East West Bancorp Does
East West Bancorp is the bank holding company for East West Bank, a commercial bank that serves businesses and individuals in the United States and in markets tied to Greater China. It gathers deposits, makes loans, and handles basic banking needs such as cash management, trade finance, and treasury services. Its core customers are small and midsize businesses, real estate borrowers, entrepreneurs, and consumers with cross-border banking needs.
- Headquarters
- United States of America US
- Employees
- 3 400
- IPO date
- Feb 8, 1999
East West Bancorp has no economic moat
Customers can compare and move routine banking relationships among East West, regional peers such as Cathay and Hanmi, and large banks such as JPMorgan Chase, Bank of America, and Wells Fargo. East West’s U.S.–Asia expertise sets it apart, but the evidence does not show that it locks customers in, lets it charge more for similar services, or gives it costs rivals cannot match.
Read the full moat analysis
The intrinsic value for East West Bancorp Inc (EWBC) under the Base Case is 135.94 USD.
Compared with the current market price of 132.39 USD, the stock appears Undervalued by 3% .