East West Bancorp, Inc.

DB:EW2 Stock Report

Market Cap: €13.8b

East West Bancorp Valuation

Is EW2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EW2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€270.78
Fair Value
63.3% undervalued intrinsic discount
12
Number of Analysts

Below Fair Value: EW2 (€99.5) is trading below our estimate of fair value (€270.78)

Significantly Below Fair Value: EW2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EW2?

Key metric: As EW2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EW2. This is calculated by dividing EW2's market cap by their current earnings.
What is EW2's PE Ratio?
PE Ratio12.2x
EarningsUS$1.17b
Market CapUS$14.25b

Price to Earnings Ratio vs Peers

How does EW2's PE Ratio compare to its peers?

The above table shows the PE ratio for EW2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.7x
CBK Commerzbank
10.4x9.1%€22.1b
601009 Bank of Nanjing
6.3x10.3%CN¥118.3b
8308 Resona Holdings
12.4x8.0%JP¥2.7t
600926 Bank of Hangzhou
5.6x15.4%CN¥89.3b
EW2 East West Bancorp
12.2x6.1%€14.3b

Price-To-Earnings vs Peers: EW2 is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (8.7x).

Price to Earnings Ratio vs Industry

How does EW2's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EW2 12.2xIndustry Avg. 8.3xNo. of Companies48PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EW2 is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the European Banks industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is EW2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EW2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: EW2 is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EW2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€99.50
€111.39
+11.9%
6.9%€122.04€92.48n/a12
Jan ’26€92.50
€113.37
+22.6%
7.0%€123.46€96.45n/a13
Dec ’25€104.00
€102.57
-1.4%
8.4%€120.02€89.78n/a13
Nov ’25€89.50
€97.28
+8.7%
4.7%€101.98€88.07n/a14
Oct ’25€74.00
€89.09
+20.4%
4.9%€97.57€83.11n/a13
Sep ’25€75.00
€89.31
+19.1%
4.1%€95.82€83.96n/a15
Aug ’25€81.00
€90.03
+11.2%
3.9%€97.13€85.10n/a15
Jul ’25€67.50
€82.57
+22.3%
7.3%€98.11€67.74n/a15
Jun ’25€67.50
€82.90
+22.8%
6.9%€98.81€70.85n/a15
May ’25€71.00
€82.90
+16.8%
6.9%€98.81€70.85n/a15
Apr ’25€73.00
€80.81
+10.7%
7.4%€98.69€70.76n/a15
Mar ’25€67.00
€77.43
+15.6%
3.4%€82.25€70.24n/a14
Feb ’25€64.00
€76.70
+19.8%
3.8%€79.40€70.17€99.5014
Jan ’25€65.50
€70.05
+6.9%
10.4%€80.81€58.11€92.5014
Dec ’24€57.50
€63.02
+9.6%
6.9%€69.88€55.17€104.0013
Nov ’24€50.50
€62.91
+24.6%
8.5%€71.81€53.86€89.5012
Oct ’24€50.50
€63.20
+25.2%
11.0%€73.78€52.97€74.0011
Sep ’24€51.00
€61.69
+21.0%
9.1%€70.57€50.67€75.0011
Aug ’24€55.50
€61.69
+11.2%
9.1%€70.57€50.67€81.0011
Jul ’24€47.60
€59.56
+25.1%
12.6%€74.53€49.69€67.5011
Jun ’24€44.80
€61.87
+38.1%
12.7%€74.60€49.73€67.5011
May ’24€46.20
€61.74
+33.6%
11.1%€73.35€52.52€71.0011
Apr ’24€50.50
€71.02
+40.6%
15.9%€85.27€55.01€73.0011
Mar ’24€71.50
€79.39
+11.0%
6.5%€87.39€68.99€67.0010
Feb ’24€72.00
€79.39
+10.3%
6.5%€87.39€68.99€64.0010
Analyst Price Target
Consensus Narrative from 12 Analysts
€112.90
Fair Value
11.9% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/02 02:56
End of Day Share Price 2025/01/31 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

East West Bancorp, Inc. is covered by 37 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jared ShawBarclays
Jason GoldbergBarclays
Peter WinterBMO Capital Markets Equity Research