EAST WEST BANCORP INC
$131.21
+0.06 (+0.05%) · delayed · Nov 13, 2026
Five-year price
52w $98.72 to $137.47
- Market cap
- $18.0B
- Enterprise value
- $14.9B
- P/E
- 28.5×
- 30.5× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 4.0%
- ROIC
- —
- Debt / equity
- 0.04
- Piotroski F
- 5/9
Value scorecard · FY2019
Does it pass the value tests?
Quality
n/a
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ○ROE > 15% (5y avg)5y avg ROE 13.8%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ●Earnings convert to cashFCF / net income 129% (5y avg)
- –Growing revenueRevenue CAGR 5y n/a
- –Shrinking share countDiluted shares n/a over 5y
Value
0
- ○P/E below 15P/E 28.5
- –EV/EBIT below 12EV/EBIT n/a
- ○FCF yield above 6%FCF yield 4.0%
- ○Price below Graham NumberGraham Number $61.63
- ○P/B below 3P/B 3.6
Safety
67
- ●Debt / equity below 0.5D/E 0.04
- ●Debt payable in < 4 yrs of earningsNet debt $-3.1B
- –Interest coverage > 8xCoverage n/ax
- –Current ratio > 1.5Current ratio n/a
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
n/a
- ○Adequate size (revenue > $2B)Revenue $0.1B
- –Strong condition (current ratio ≥ 2)Current ratio n/a
- –Earnings stability (no loss, 10y)4 years of data
- –Uninterrupted dividendsDividends paid every year on record
- –Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 15%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 30.5
- ○P/E × P/B ≤ 22.5Product 109.4
Valuation lab
What do you have to believe?
At $131.21, the market is pricing in about 6.0% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt −$3.1B · 137M shares
Intrinsic value
$130.85
Price
$131.21
Premium paid
0%
What the price implies
The market is paying for 6.0% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
58% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 |
|---|---|---|---|---|
| Revenue | 52 | 54 | 53 | 55 |
| Gross profit | — | — | — | — |
| Operating income | — | — | — | — |
| Operating margin | — | — | — | — |
| Pre-tax income | 572 | 735 | 819 | 844 |
| Income tax | 141 | 229 | 115 | 170 |
| Net income | 432 | 506 | 704 | 674 |
| EPS (diluted) | 2.97 | 3.47 | 4.81 | 4.61 |
| Diluted shares | 145 | 146 | 146 | 146 |
Who owns it