East West Valuation
| EWBC Stock | USD 74.47 1.59 2.18% |
At this time, the firm appears to be overvalued. East West Bancorp shows a prevailing Real Value of $70.05 per share. The current price of the firm is $74.47. Our model computes the value of East West Bancorp from reviewing the firm fundamentals such as Profit Margin of 0.49 %, current valuation of 10.01 B, and Shares Outstanding of 139.12 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book 1.4563 | Enterprise Value 10 B | Price Sales 4.2851 | Forward PE 9.2166 | Trailing PE 9.1039 |
Overvalued
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 74.47 | Real 70.05 | Target 65.75 | Hype 74.47 |
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 Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining East West's current stock value. Our valuation model uses many indicators to compare East West value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across East West competition to find correlations between indicators driving East West's intrinsic value. More Info.East West Bancorp is rated # 2 in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for East West Bancorp is roughly 10.86 . Comparative valuation analysis is a catch-all model that can be used if you cannot value East West by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for East West's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the East West's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates East West's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in East West and how it compares across the competition.
About East West Valuation
The stock valuation mechanism determines the current worth of East West Bancorp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of East West Bancorp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of East West Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing East West's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of East West's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of East West. We calculate exposure to East West's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to East West's related companies.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. East West Bancorp, Inc. was incorporated in 1998 and is headquartered in Pasadena, California. East West operates under BanksDiversified classification in the United States and is traded on NASDAQ Exchange. It employs 3100 people.
East West Quarterly Retained Earnings |
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8 Steps to conduct East West's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates East West's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct East West's valuation analysis, follow these 8 steps:- Gather financial information: Obtain East West's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine East West's revenue streams: Identify East West's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research East West's industry and market trends, including the size of the market, growth rate, and competition.
- Establish East West's growth potential: Evaluate East West's management, business model, and growth potential.
- Determine East West's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate East West's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of East West represents a small ownership stake in the entity. As a stockholder of East, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
East West Dividends Analysis For Valuation
There are various types of dividends East West can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of East shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from East West Bancorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When East pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of East West by the value of the dividends paid out.
East West Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as East West does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 141.9 M | |
| Quarterly Earnings Growth Y O Y | -0.288 | |
| Forward Price Earnings | 9.2166 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in East West Bancorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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.