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East West Bancorp (East West Bancorp) Intrinsic Value: Projected FCF : $148.79 (As of Apr. 27, 2024)


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What is East West Bancorp Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-27), East West Bancorp's Intrinsic Value: Projected FCF is $148.79. The stock price of East West Bancorp is $75.98. Therefore, East West Bancorp's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

The historical rank and industry rank for East West Bancorp's Intrinsic Value: Projected FCF or its related term are showing as below:

EWBC' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.48   Med: 0.66   Max: 0.95
Current: 0.51

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of East West Bancorp was 0.95. The lowest was 0.48. And the median was 0.66.

EWBC's Price-to-Projected-FCF is ranked worse than
60.02% of 1213 companies
in the Banks industry
Industry Median: 0.44 vs EWBC: 0.51

East West Bancorp Intrinsic Value: Projected FCF Historical Data

The historical data trend for East West Bancorp's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

East West Bancorp Intrinsic Value: Projected FCF Chart

East West Bancorp Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.21 92.72 102.85 130.87 148.79

East West Bancorp Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 134.83 136.86 141.00 148.79 -

Competitive Comparison of East West Bancorp's Intrinsic Value: Projected FCF

For the Banks - Regional subindustry, East West Bancorp's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


East West Bancorp's Price-to-Projected-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, East West Bancorp's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where East West Bancorp's Price-to-Projected-FCF falls into.



East West Bancorp Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get East West Bancorp's Free Cash Flow(6 year avg) = $1,111.00.

East West Bancorp's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(13.973715027901*1111.00032+7023.232*0.8)/140.261
=150.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


East West Bancorp  (NAS:EWBC) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

East West Bancorp's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=75.98/150.74316786268
=0.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


East West Bancorp Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of East West Bancorp's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


East West Bancorp (East West Bancorp) Business Description

Traded in Other Exchanges
Address
135 North Los Robles Avenue, 7th Floor, Pasadena, CA, USA, 91101
East West Bancorp Inc is the holding company for East West Bank, a full-service commercial bank with cross-border operations concentrated in the United States and China. East-West Bank is one of a few U.S. based banks with a full banking license in China. The bank's cost strategy has increasingly focused on expanding its deposit base away from time deposits to commercial deposits. The bank has also taken part in entertainment partnerships between participants in China and Hollywood. Most of these efforts include financing the production and distribution of film and television projects. The bank leverages its cultural and regulatory knowledge in the U.S. and China to assist its customers in entering new markets. Most of its earning assets are in loans held for investment.
Executives
Jack C Liu director 415 HUNTINGTON DRIVE, SAN MARINO CA 91108
Douglas Paul Krause officer: Executive Vice President 415 HUNTINGTON DRIVE, SAN MARINO CA 91108
Molly Campbell director 135 N. LOS ROBLES AVE 7TH FLR, PASADENA CA 91101
Moral-niles Christopher Del officer: Chief Financial Officer ASSOCIATED BANC-CORP, 433 MAIN STREET, GREEN BAY WI 54301
Rudolph Estrada director 415 HUNTINGTON DR., SAN MARINO CA 91108
Mark R Hutchins director 2454 MCMULLEN BOOTH RD, BUILDING C, CLEARWATER FL 33759
Manuel Pham Alvarez director 135 N. LOS ROBLES AVE., PASADENA CA 91101
Archana Deskus director 2929 ALLEN PARKWAY SUITE 2100, HOUSTON TX 77019
Sabrina Kay director 30930 RUSSELL RANCH ROAD, SUITE 300, WESTLAKE VILLAGE CA 91362
Dominic Ng director, officer: Chief Executive Officer
Lester Sussman director C/O CU BANCORP, 15821 VENTURA BOULEVARD, SUITE 100, ENCINO CA 91436
Irene H Oh officer: Chief Financial Officer 135 N LOS ROBLES AVE. 7TH FL, PASADENA CA 91101
Parker Shi officer: Chief Operating Officer 135 N. LOS ROBLES AVE., PASADENA CA 91101
Gary Teo officer: Senior Vice President 135 N. LOS ROBLES AVE 7TH FLR, PASADENA CA 91101
Serge Dumont director 135 N. LOS ROBLES AVE., PASADENA CA 91101