Hope Bancorp, Inc. (HOPE) 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

-15.7%

$11.23

vs $13.32 price

Levered DCF

$20.57

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.24

Distress zone

Rating

B+

Overall 3 / 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	23.83×	14.81×	10.8×	7.04×	8.81×	12.12×	11.01×	8.24×
P/B	0.62×	0.69×	0.68×	0.76×	0.86×	0.66×	0.92×	0.82×
P/S	1.46×	1.48×	1.32×	2×	2.95×	2.09×	2.58×	2.21×
EV / EBITDA	8.26×	10.65×	8.27×	7.69×	7.81×	11.1×	9.46×	8.58×
Gross margin	48.6%	45.7%	49.3%	80.8%	93.2%	64.9%	69.1%	75.0%
Operating margin	8.3%	13.3%	16.3%	38.6%	45.1%	22.0%	31.0%	36.1%
Net margin	6.0%	10.0%	12.2%	28.4%	33.5%	17.3%	23.4%	26.8%
Current ratio	0.72×	0.04×	0.28×	0.16×	0.2×	0.19×	0.2×	0.19×
Debt / equity	0.17×	0.18×	0.92×	0.62×	0.32×	0.3×	0.49×	0.59×
Interest coverage	0.17×	0.25×	0.34×	2.15×	5.12×	1.08×	1.04×	1.57×
Dividend yield	5.0%	4.6%	4.7%	4.4%	3.8%	5.1%	3.8%	4.6%
Payout ratio	120.9%	67.8%	50.2%	30.8%	33.6%	62.0%	41.5%	37.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.6%	4.7%	6.3%	10.8%	9.8%	5.4%	8.4%	10.0%
Return on invested capital	-37.9%	3.8%	3.2%	6.4%	7.2%	4.0%	5.5%	6.1%
Return on assets	0.3%	0.6%	0.7%	1.1%	1.1%	0.7%	1.1%	1.2%
Free cash flow yield	10.7%	7.2%	31.9%	31.0%	17.6%	11.9%	9.4%	13.6%
Earnings yield	4.1%	6.7%	9.3%	14.2%	11.4%	8.3%	9.1%	12.1%
Enterprise value	$1.2B	$1.4B	$1.5B	$2.3B	$2.1B	$1.6B	$2.1B	$2.2B
Net debt / EBITDA	-1.09×	-0.49×	0.16×	2.5×	1.27×	1.63×	1.15×	2.46×
Cash conversion cycle (days)	0	-44	-90	-40	-12	10	-39	-48