East West Bancorp Inc (EWBC) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of East West Bancorp Inc stock $84.93, price $134, that is 36.6% below the price, quality 59 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $38.13 – $136.60 · fair‑value band $64.42 – $132.45 · the $134.06 price screens above the $84.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States.
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The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits.
The company provides various loan products, such as mortgage and home equity, commercial and residential real estate, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance, equipment financing, loan syndication, and equipment loans, as well as financing services for clients to facilitate their business transactions between the United States and Asia.
It also provides foreign exchange, treasury management, wealth management, and interest rate and commodity risk hedging services; and mobile, and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.
Stock analysis
East West Bancorp Inc (EWBC) currently trades at $134.06, while our model-based Fair Value estimate is $84.93, 37% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $86.17 per share, and 0 of the 6 models we run sit above the $134.06 price.
Bear case: the Dividend Discount group reads lowest at $38.40, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $64.42 (bear) to $132.45 (bull), the price of $134.06 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
East West Bancorp Inc reported revenue of $4.7B in FY2025 versus $1.9B in FY2021, a compound +25.5%/yr. Reported net income was $1.3B in FY2025, compounding +11.0%/yr from FY2021.
Key figures
Market cap $18.6B Large · P/E ratio 12.7 · P/S ratio 6.37 · EPS (TTM) $10.52 · Dividend yield 0.4% · Net margin 50.1% · Return on equity 16.6% · Return on assets (EBIT) 1.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 71 out of 100 (low confidence).
What moves the price
The share trades about 2% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −35% fair-value upside, at −37%, EWBC screens richer than that median.
Fair Value models
Bear$64.42Fair Value $84.93Bull$132.45
Price $134.06 · Downside -36.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($8.43 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 4 officers or directors sold shares worth $4.4M and none bought.
SaleManuel Pham AlvarezDirector810 shares at $130.40$105,624Sep 8, 2026
SaleJack C LiuDirector2× since Feb 5, 2026: 2,421 shares, avg. $125.62$304,119Aug 12, 2026
SaleDouglas Paul KrauseVice Chairman2× since May 27, 2026: 20,000 shares, avg. $127.94$2.6MAug 6, 2026
SaleIrene H OhChief Risk Officer5× since Dec 17, 2025: 32,511 shares, avg. $120.29$3.9MJun 15, 2026
SaleDominic NgChief Executive Officer, Director4× since Dec 12, 2025: 140,000 shares, avg. $119.74$16.8MMay 6, 2026
SaleArchana DeskusDirector1,800 shares at $125.55$225,990Apr 30, 2026
SaleMolly CampbellDirector4× since Nov 7, 2025: 5,320 shares, avg. $110.50$587,858Feb 6, 2026
SaleGary TeoExecutive Vice President7,000 shares at $122.59$858,130Feb 6, 2026
SaleParker ShiChief Operating Officer8,844 shares at $115.03$1.0MDec 11, 2025
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+16.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.6%
Dividend (yield on the price)0.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.6% vs 13.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.38% → 37%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−2.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −0.7% a year for the price and −4.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (91 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: East West Bancorp draws strength from capital levels well above regulatory needs that support both lending growth and rising payouts together with record revenues, yet it shows only an average moat without any standout durable edges.
Main risk: Deterioration in US-China relations could reduce demand for its cross-border lending and payments services and lower profitability.
Bull case: The bank could strengthen its niche in serving Asian-American clients and diversify lending into less China-exposed areas to offset any Asia-related pressures.
Bear case: Sustained US-China tensions or successful fintech competition in payments could shrink its cross-border franchise and materially reduce revenue and margins.
East West Bancorp holds a CET1 capital ratio above 15 percent, well clear of regulatory minimums and giving it flexibility for both loan growth and higher distributions. Recent quarters show record revenue alongside steady dividend increases. Will the bank prioritize expanding its loan book or accelerate returns to shareholders?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 1002 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−36.6% · Bottom 25%
Profitability
Return on equity (12 months)16.6% · Top 25%
Return on assets1.7% · Top 25%
Net margin (12 months)50.1% · Top 25%
Operating margin (12 months)67.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)3.8% · Below median
Dividend yield (12 months)0.4% · Bottom 25%
Balance sheet
Debt / equity0.34× · Above median
Valuation Multiplesvs Banks - Regional median · lower = cheaper
P/E (12 months)12.7× · Pricier than median
P/B2.09× · Priciest 25%
P/S (12 months)6.37× · Priciest 25%
Price / free cash flow12.4× · Pricier than median
EV/EBITDA10.3× · Pricier than median
PEG5.58× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 8
FUTURE (revenue growth)19· sector 48
PAST (return on equity)66· sector 43
HEALTH (low debt)83· sector 85
DIVIDEND (yield)9· sector 52
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "East West Bancorp Inc Fair Value". https://www.fairvalue-calculator.com/stock/EWBC
Frequently asked questions
Is East West Bancorp Inc (EWBC) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $84.93 versus a price of $134.06, about 37% lower (overvalued).
What is the fair value of EWBC?
Our model-based fair value for East West Bancorp Inc is $84.93 (as of Nov 4, 2026), built from audited fundamentals. The current price: $134.06.
What is the quality score of EWBC?
East West Bancorp Inc has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for East West Bancorp Inc (EWBC)?
Our model-based price target is the fair value of $84.93 (as of Nov 4, 2026) from 6 valuation models. Cautious scenario $64.42, optimistic scenario $132.45. It is a calculation from audited fundamentals, not an analyst target.
What is the East West Bancorp Inc stock forecast for 2026?
Our models put fair value at $84.93, about 37% lower versus a price of $134.06 (overvalued). Cautious scenario $64.42, optimistic scenario $132.45. The calculation is refreshed regularly with new filings.
What is the revenue of East West Bancorp Inc (EWBC)?
East West Bancorp Inc reported trailing-twelve-month revenue of about $2.9B (latest available figure, as of Nov 4, 2026).
Does East West Bancorp Inc pay a dividend?
East West Bancorp Inc currently shows a dividend yield of 0.45% relative to its recent price (as of Nov 4, 2026).
What growth is priced into East West Bancorp Inc (EWBC)?
For today's price to be fair in a discounted-cash-flow model, East West Bancorp Inc would have to grow free cash flow by +1.7 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.9 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of EWBC use?
Our models discount East West Bancorp Inc at 9.2 %: a base by market capitalisation (large), damped by beta 0.98, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For East West Bancorp Inc that is +1.7 % per year a year over ten years, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has East West Bancorp Inc (EWBC) delivered so far?
Over the past 5 years revenue at East West Bancorp Inc grew +20.9 % a year. The price currently implies +1.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of East West Bancorp Inc (EWBC) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into East West Bancorp Inc (+1.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of East West Bancorp Inc (EWBC)?
The free-cash-flow yield on the price is 8.08 %: that much free cash flow East West Bancorp Inc produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of East West Bancorp Inc (EWBC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For East West Bancorp Inc it is $84.93 per share (as of Nov 4, 2026), against a price of $134.06. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is East West Bancorp Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, EWBC trades above its calculated fair value: price $134.06, fair value $84.93, a gap of about −37% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EWBC?
No. The price is what the market pays today ($134.06); the fair value is what the company's own numbers justify ($84.93). For East West Bancorp Inc the two are $49.13 per share apart. That gap is exactly why we show both numbers side by side.
How much is East West Bancorp Inc worth?
The market values East West Bancorp Inc at about $18.6B (market capitalisation, as of Nov 4, 2026). Per share that is $134.06; our models calculate a fair value of $84.93 per share.
What do the bullish and bearish scenarios say about EWBC?
Our models span a range for East West Bancorp Inc: cautious scenario $64.42, base $84.93, optimistic $132.45 per share (as of Nov 4, 2026, price $134.06). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of EWBC?
East West Bancorp Inc trades at a price-to-earnings ratio of 12.7 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $84.93 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2018, FY2023 ex one-offs: 11.7. Other multiples: PEG 5.6, P/B 2.1, P/S 6.4, EV/EBITDA 10.3.
What is the PEG ratio of EWBC?
The PEG ratio of East West Bancorp Inc is 5.58 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of East West Bancorp Inc (EWBC)?
Balance-sheet figures for East West Bancorp Inc (as of Nov 4, 2026): return on equity 16.6%, debt of 0.34 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is EWBC from its 52-week high?
East West Bancorp Inc trades at $134.06, about 2% below its 52-week high of $136.60 and 37% above the low of $98.20 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $84.93 is for.
Which stocks are comparable to East West Bancorp Inc?
From the same area (Financial Services) we also value China Merchants Bank Co, DBS Group, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is East West Bancorp Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $134.06, calculated fair value $84.93 (−37%), Quality Score 59/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EWBC calculated?
We run East West Bancorp Inc through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $84.93, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. East West Bancorp Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of East West Bancorp Inc (EWBC)?
The closing price on Nov 4, 2026 was $134.06. Our model-based fair value is $84.93, about 37% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with East West Bancorp Inc right now?
Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($64.42 to $132.45) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of East West Bancorp Inc (EWBC) come from?
Earnings per share at East West Bancorp Inc grew +14.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +15.4 %, EBIT margin −1.7 %, tax rate +0.8 %, residual (interest, one-offs) −0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of East West Bancorp Inc
How large is the market capitalisation of East West Bancorp Inc (EWBC)?
The market capitalisation of East West Bancorp Inc is $18.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of East West Bancorp Inc (EWBC)?
The price-to-sales ratio of East West Bancorp Inc is 6.37 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of East West Bancorp Inc (EWBC)?
Earnings per share at East West Bancorp Inc are $10.52 (price ÷ EPS = P/E 12.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of East West Bancorp Inc (EWBC)?
The dividend yield of East West Bancorp Inc is 0.4% (payout 5.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of East West Bancorp Inc (EWBC)?
The net margin of East West Bancorp Inc is 50.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of East West Bancorp Inc (EWBC)?
The return on equity (ROE) of East West Bancorp Inc is 16.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of East West Bancorp Inc (EWBC)?
On an EBIT basis the return on assets of East West Bancorp Inc is 1.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of East West Bancorp Inc (EWBC)?
The operating margin of East West Bancorp Inc is 67.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at East West Bancorp Inc (EWBC)?
Revenue at East West Bancorp Inc is growing +3.8% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at East West Bancorp Inc (EWBC)?
Earnings per share at East West Bancorp Inc are growing +4.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does East West Bancorp Inc (EWBC) carry?
The net debt of East West Bancorp Inc is $2.5B (fiscal year 2025, ≈ 1.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026