East West Bancorp: An Undervalued Bank With Durable Strength

May 12, 2025 2:36 AM ETEast West Bancorp, Inc. (EWBC) StockEWBC
Bet Size Matters
9 Followers
(12min)

Summary

  • With deep ties to Asian-American communities and cross-border banking operations in Asia, EWBC has carved out a distinctive niche.
  • EWBC maintains superior asset quality, conservative loan loss provisioning, and strong profitability metrics (i.e., highlighted by a 15.7% ROE and 1.56% ROA) driven by organic growth and operational efficiency.
  • Despite its strong track record, EWBC trades at just 10× forward earnings, below what its performance merits. If macro and geopolitical fears subside, the stock could see meaningful multiple expansion.

Wooden blocks with "EAST" and "WEST" text of concept, a pen, a notebook, and a cup.

Seiya Tabuchi/iStock via Getty Images

Following a 20% pullback from its late 2024 high, East West Bancorp (NASDAQ:EWBC) trades at just 10 times forward earnings, despite its consistent organic growth and strong profitability. With prudent risk management and a unique

This article was written by

9 Followers
I am a seasoned value investor with a decade of experience focusing on small and mid-cap stocks. My investment strategy emphasizes deep analysis in the consumer discretionary and financial sectors, where I identify undervalued companies with strong growth potential. I have dedicated years to teaching valuation to college students. My teaching experience complements my investment approach, as I stay engaged with foundational principles and emerging trends in accounting and valuation. I am committed to building wealth through investing, aiming to reach financial milestones through disciplined, research-backed decisions.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EWBC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About EWBC Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on EWBC

Related Stocks

SymbolLast Price% Chg
EWBC
--