East West Bancorp (EWBC): Assessing Valuation After Record Q3 2025 Results and Historic Profit Highs

East West Bancorp (EWBC) just posted record results for the third quarter of 2025, highlighting historic highs across revenue, net income, earnings per share, and deposits. This momentum came from healthy deposit-led loan growth as well as strong fee businesses.

See our latest analysis for East West Bancorp.

East West Bancorp’s momentum has been mirrored in its stock performance, with a solid 8.8% share price return year-to-date and a remarkable 211% total shareholder return over the past five years. The recent dividend affirmation and ongoing buybacks reflect management’s confidence, even as the bank navigated a modest uptick in charge-offs last quarter. Momentum is not showing signs of slowing, especially given the bank’s continued growth and capital discipline.

If East West Bancorp’s ability to grow despite market headwinds has you thinking bigger, consider discovering fast growing stocks with high insider ownership.

With shares trading just over $102 and analysts seeing potential upside to $125, East West Bancorp appears attractively valued on the surface. However, with five-year gains of over 200%, the question remains: is there still a buying opportunity here, or has the market already priced in the bank’s growth trajectory?

Most Popular Narrative: 18% Undervalued

Compared to its last close at $102.77, the most widely followed narrative places East West Bancorp’s fair value at $125.40. This represents a significant premium. This sets the stage for bullish expectations and provides a strong anchor for further analysis.

“Sustained investments in digital banking, automation, and technology in areas such as mobile, cybersecurity, and operational efficiency allow for scalable growth and improve the efficiency ratio, supporting higher net margins and long-term cost containment.”

Read the complete narrative.

Want to know what fuels this aggressive price target? The narrative’s secret sauce combines ambitious growth forecasts, margin pressures, and a premium valuation multiple for future profits. Click through to see the full breakdown behind this bullish fair value call.

Result: Fair Value of $125.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent exposure to commercial real estate and rising regulatory costs could significantly test the durability of East West Bancorp’s growth story in the future.

Find out about the key risks to this East West Bancorp narrative.

Build Your Own East West Bancorp Narrative

If you see the numbers differently or want to come to your own conclusions, you can build your perspective in just a few minutes. Do it your way.

A great starting point for your East West Bancorp research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Don’t let fresh opportunities pass you by. Put your money to work by targeting stocks with unique growth stories, robust dividends, or artificial intelligence breakthroughs today.

• Unlock income potential by targeting companies with strong yields via these 19 dividend stocks with yields > 3%.
• Capitalize on emerging trends in automation and data with cutting-edge options from these 27 AI penny stocks.
• Seize the chance to spot market mispricings and future winners through these 878 undervalued stocks based on cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com