East West Bancorp Stock Current Valuation
| EWBC Stock | USD 72.88 1.08 1.50% |
Valuation analysis of East West Bancorp helps investors to measure East West's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value Over EBITDA is expected to grow to -94.59. The current year's Enterprise Value Multiple is expected to grow to -94.59. Fundamental drivers impacting East West's valuation include:
Price Book 1.4563 | Enterprise Value 9.6 B | Price Sales 4.2851 | Forward PE 9.2166 | Trailing PE 8.7775 |
Fairly Valued
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.
Our valuation method for East West Bancorp is useful when determining the fair value of the East stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of East West. 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 72.88 | Real 69.38 | Target 65.75 | Hype 71.8 | Naive 70.37 |
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, assets, liabilities, 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, news, and other external factors that may influence East West's 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 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: East West Bancorp Company Current Valuation Analysis
East West's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current East West Current Valuation | 9.64 B |
Most of East West's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, East West Bancorp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
East Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for East West is extremely important. It helps to project a fair market value of East Stock properly, considering its historical fundamentals such as Current Valuation. Since East West's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of East West's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of East West's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, East West Bancorp has a Current Valuation of 9.64 B. This is 70.63% lower than that of the Banks sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is 42.02% higher than that of the company.
East Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses East West's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of East West could also be used in its relative valuation, which is a method of valuing East West by comparing valuation metrics of similar companies.East West is currently under evaluation in current valuation category among related companies.
East West ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, East West's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to East West's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
East Fundamentals
| Return On Equity | 0.18 | ||||
| Return On Asset | 0.0174 | ||||
| Profit Margin | 0.49 % | ||||
| Operating Margin | 0.66 % | ||||
| Current Valuation | 9.64 B | ||||
| Shares Outstanding | 139.12 M | ||||
| Shares Owned By Insiders | 1.02 % | ||||
| Shares Owned By Institutions | 92.16 % | ||||
| Number Of Shares Shorted | 6.03 M | ||||
| Price To Earning | 15.81 X | ||||
| Price To Book | 1.46 X | ||||
| Price To Sales | 4.29 X | ||||
| Revenue | 3.97 B | ||||
| Gross Profit | 2.16 B | ||||
| EBITDA | (103.31 M) | ||||
| Net Income | 1.16 B | ||||
| Cash And Equivalents | 3.69 B | ||||
| Cash Per Share | 26.16 X | ||||
| Total Debt | 4.76 B | ||||
| Debt To Equity | 9.36 % | ||||
| Book Value Per Share | 49.64 X | ||||
| Cash Flow From Operations | 1.42 B | ||||
| Short Ratio | 4.17 X | ||||
| Earnings Per Share | 8.18 X | ||||
| Price To Earnings To Growth | 5.58 X | ||||
| Target Price | 87.93 | ||||
| Number Of Employees | 3.21 K | ||||
| Beta | 1.38 | ||||
| Market Capitalization | 9.99 B | ||||
| Total Asset | 69.61 B | ||||
| Retained Earnings | 6.47 B | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 1.99 % | ||||
| Net Asset | 69.61 B | ||||
| Last Dividend Paid | 1.92 |
About East West Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze East West Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of East West using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of East West Bancorp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
East West Investors Sentiment
The influence of East West's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in East. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to East West's public news can be used to forecast risks associated with an investment in East. The trend in average sentiment can be used to explain how an investor holding East can time the market purely based on public headlines and social activities around East West Bancorp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
East West's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for East West's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average East West's news discussions. The higher the estimated score, the more favorable is the investor's outlook on East West.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards East West in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, East West's short interest history, or implied volatility extrapolated from East West options trading.
Pair Trading with East West
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if East West position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in East West will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to East West could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace East West when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back East West - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling East West Bancorp to buy it.
The correlation of East West is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as East West moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if East West Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for East West can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out East West Piotroski F Score and East West Altman Z Score analysis. Note that the East West Bancorp information on this page should be used as a complementary analysis to other East West's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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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Is East West's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of East West. If investors know East will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about East West listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Dividend Share 1.92 | Earnings Share 8.18 | Revenue Per Share 16.734 | Quarterly Revenue Growth 0.056 |
The market value of East West Bancorp is measured differently than its book value, which is the value of East that is recorded on the company's balance sheet. Investors also form their own opinion of East West's value that differs from its market value or its book value, called intrinsic value, which is East West's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because East West's market value can be influenced by many factors that don't directly affect East West's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between East West's value and its price as these two are different measures arrived at by different means. Investors typically determine if East West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, East West's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.