East West Bancorp, Inc.

EWBC Financial Banks Regional

East West Bancorp, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $4.7 billion, up 3.18% from fiscal 2024.

Revenue
−0.14%
EPS
+4.91%
Free cash flow
+112.6%
Total debt
−0.01%

Quarter to September 2026, against a year earlier

129.29 4.77 −3.56%
Market cap
$17.7B
P/E
12.2×
Fwd P/E
12.2×
Dividend yield
2.48%
F-score
7/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a

East West Bancorp, Inc. (EWBC) valuation and DCF model

What the price implies · reverse DCF

At $129.29 the price implies 38.3% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 11.6% a year over the last ten years, 16.8% over the last five. The price asks for about three times its ten-year rate. Return on equity averaged 15.4% over ten years; the price implies 15.3% for good.

In December 2017 the price assumed 23.4% a year; East West Bancorp, Inc. went on to grow the dividend a share 7.7% a year to FY2025.

Price implies
38.3%
Last 5 years, reported
16.8%
Last 10 years, reported
11.6%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
38.3% a year for ten years
$129.29
today’s price
Its base case
11.6% a year for five years, then 7.0%
$15.99
87.6% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record East West Bancorp, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 38.3% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against East West Bancorp, Inc.’s own cost of capital: risk-free 4.3% + beta 0.98 × equity premium 4.5% = 8.7% cost of equity; weighted, 8.7%.

Use 8.7%
Base case value per share $15.99 ten years discounted, and what follows
Current price $129.29 market price per share
Below today’s price 87.6% downside at the base case’s assumptions

How we got there$6.37 10 years of dividends+$9.62 terminal value=$15.99 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Banks Regional).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 12.20× 10.50× 11.50× 6% above 12.02× 2% above
P/FCF 9.57× 8.25× 8.92× 7% above 10.60× 10% below
P/B 1.92× 1.69× 1.69× 14% above 1.23× 56% above
EV/Sales — 2.21× 2.14× — 3.90× —
8.94×11.63×14.32×17.00×10Y avg 11.50×2017201820192020202120222023202420252026

EWBC trades at 12.20× P/E, against a 10-year average of 11.50× (range 8.26×–17.47×). That is dearer than 67% of the last 9 year-end readings; re-rating to the average implies $121.85 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.