East West Bancorp, Inc. (EWBC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+92.9%

$257.88

vs $133.69 price

Levered DCF

$314.60

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.27

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.73×	11.41×	8.86×	8.26×	12.77×	12.71×	10.52×	8.96×
P/B	1.75×	1.72×	1.48×	1.56×	1.91×	1.37×	1.41×	1.43×
P/S	3.35×	2.97×	2.61×	3.59×	5.91×	3.97×	3.39×	3.45×
EV / EBITDA	9.32×	6.99×	6.42×	3.98×	6.03×	4.49×	4.92×	3.67×
Gross margin	59.0%	53.4%	61.8%	86.6%	97.2%	76.4%	75.5%	82.0%
Operating margin	37.2%	33.1%	37.0%	54.4%	55.9%	37.7%	40.4%	44.8%
Net margin	28.6%	26.0%	29.4%	43.5%	46.2%	31.2%	32.2%	38.5%
Current ratio	0.32×	0.09×	0.18×	0.17×	0.27×	0.23×	0.18×	0.17×
Debt / equity	0.36×	0.49×	0.68×	0.09×	0.14×	0.23×	0.25×	0.13×
Interest coverage	0.99×	0.77×	1.06×	5.13×	12.12×	3.15×	2.04×	3.09×
Dividend yield	2.1%	2.3%	2.7%	2.5%	1.7%	2.2%	2.2%	2.0%
Payout ratio	25.2%	26.5%	23.6%	20.2%	21.6%	27.9%	23.0%	17.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.9%	15.1%	16.7%	18.8%	15.0%	10.8%	13.4%	15.9%
Return on invested capital	1.6%	9.0%	8.6%	17.2%	13.1%	8.7%	10.8%	14.1%
Return on assets	1.6%	1.5%	1.7%	1.8%	1.4%	1.1%	1.5%	1.7%
Free cash flow yield	9.7%	10.6%	13.8%	22.2%	10.4%	9.6%	10.2%	13.8%
Earnings yield	8.5%	8.8%	11.3%	12.1%	7.8%	7.9%	9.5%	11.2%
Enterprise value	$18.1B	$11.8B	$10.4B	$6.3B	$7.3B	$3.6B	$4.9B	$3.5B
Net debt / EBITDA	1.3×	-0.92×	0.08×	-1.94×	-3.17×	-4.47×	-2.25×	-2.91×
Cash conversion cycle (days)	25	0	0	0	0	0	0	0