
149.25 USD (+19.1%)
16 analysts
What does it do?
East West Bancorp is a US regional bank offering commercial and consumer banking services, with a specialized focus on the Chinese-American community and the California market.
Key points
from its scores- ✓High-quality business9.8
- ✓Strong growth7.5
AI analysis
bottom line, main risk, context and newsThe combination of high profitability, balance sheet quality, and reasonable valuation makes it an attractive option within the regional banking sector.
East West Bancorp shows solid financial health (ROE 16.58%, ROA 1.77%) and exceptional quality (net margin 50.06%), with double-digit revenue and earnings growth. Its valuation is reasonable (P/E 12.03) and the dividend is well covered (payout 26.90%). The context of falling rates in the US could support its net interest margin.
The main risk is a US economic recession that deteriorates the credit quality of its loan portfolio, especially in the California real estate market, where it has high concentration.
Context and risks
East West Bancorp is a US regional bank with a solid balance sheet (ROE 16.58%, ROA 1.77%) and no recent relevant news. Its main exposure is to the US credit cycle and interest rates, where the Fed shows a downward bias, which could ease pressure on net interest margins going forward. No specific regulatory, geopolitical, or business model risks are identified that are not already reflected in its risk profile.
Is East West Bancorp stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades in line with the Financial Services median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.0 | 13.7 | −12% |
| Price / book | 1.9 | 1.9 | +0% |
| Price / sales | 5.9 | 3.5 | +72% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Financial Services: 5.2).
Average analyst target: 149.25 USD, +19.1% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 12.0
- Forward P/E
- 10.9
- Price / book
- 1.9
- Price / sales
- 5.9
- PEG
- 5.58
- Market cap
- 17.2B USD
- Enterprise value
- 16.0B USD
Profitability
- ROE
- 16.6%
- ROA
- 1.8%
- ROIC (approx.)
- 13.8%
- Gross margin
- 0.0%
- Operating margin
- 65.3%
- Net margin
- 50.1%
Solvency
- Total debt
- 4.5B USD
- Net debt
- −1.1B USD
- Cash
- 5.6B USD
Growth
- Revenue growth
- +16.3%
- Earnings growth
- +17.4%
- EPS (TTM)
- 10.41 USD
- EPS (forward)
- 11.52 USD
Dividend
- Dividend yield
- 2.6%
- Payout
- 26.9%
Risk and market
- Beta
- 0.97
- Analyst consensus
- Buy (16)
- Target price
- 149.25 USD
- 52-week range
- 92.67 – 137.47
Recent news
All EWBC news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about East West Bancorp
Is East West Bancorp stock cheap or expensive?
On P/E and Price / book, it trades in line with the Financial Services median (within 15%). Valuation score: 6.0 out of 10 (median for Financial Services: 5.2). Average analyst target: 149.25 USD, +19.1% versus the price. This is not investment advice.
What score does East West Bancorp get on MeridIAn Screener?
It scores 7.1 out of 10, rank 160 of 2,130 (better than 91% of the companies analysed). Its strongest category is Quality / Moat (9.8) and its weakest, Valuation (6.0). Analysis of 08/10/2026.
What is East West Bancorp's P/E ratio?
Its P/E is 12.0: the share price equals 12.0 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 10.9.
How much is East West Bancorp worth on the stock market?
Its market capitalisation is 17.2B USD.
Does East West Bancorp pay a dividend?
Yes: its dividend yield is 2.55% and it pays out 27% of its earnings.
How has East West Bancorp stock performed over the last year?
It has risen 29.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 92.67 and 137.47 USD. Past performance does not guarantee future results.
What do analysts think of East West Bancorp?
16 analysts cover it; their average recommendation is “Buy” and their average target is 149.25 USD (+19.1% versus the price). It is an estimate, not market data.
