East West Bancorp, Inc. cash flow to debt ratio of 47.31% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

East West Bancorp, Inc.'s free cash flow has increased 6.38% from $1.41B last year to $1.50B, signaling increasing performance

East West Bancorp, Inc.'s debt to equity ratio is 0.43, which means that the company's assets are healthy financed, signaling financial stability.

East West Bancorp, Inc.'s debt has decreased relative to shareholder equity from 0.49 last year to 0.43 today, signaling strengthened financials

East West Bancorp, Inc. has a net debt to EBITDA ratio of 1.24x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

East West Bancorp, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

East West Bancorp, Inc.'s profit margin has increased (46.50%) in the last year from 26.01% to 38.11%, signaling increasing performance

East West Bancorp, Inc.'s short-term liabilities of $3.00B exceed its short-term assets of $971.79M, signaling financial risk

East West Bancorp, Inc.'s return on assets of 1.73% is lower than the 5.00% threshold, indicating inefficient asset utilization

East West Bancorp, Inc.'s return on equity of 16.19%, is higher than 15.00%, indicating good performance

East West Bancorp, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

East West Bancorp, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

East West Bancorp, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

East West Bancorp, Inc. has a free cash flow yield of 8.31%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

East West Bancorp, Inc.'s yearly earnings has increased 13.69% since last year from $1.17B to $1.33B, signaling increasing performance

East West Bancorp, Inc.'s yearly revenue has increased 4.63% since last year from $4.48B to $4.69B, signaling increasing performance

ROIC 5.08% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

East West Bancorp, Inc.'s 3-year revenue CAGR of 21.80% is positive, indicating growing revenue over the past 3 years

East West Bancorp, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

East West Bancorp, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

East West Bancorp, Inc. is undervalued relative to its fair value price of 175.39 based on Discounted Cash Flow model

East West Bancorp, Inc. has an earnings yield of 7.96%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

East West Bancorp, Inc. is overvalued relative to its fair value price of 85.17 based on EBITDA multiple model

East West Bancorp, Inc. has an EV/EBITDA ratio of 10.12x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

East West Bancorp, Inc. is undervalued relative to its fair value price of 245.94 based on Earnings Fair Value model

East West Bancorp, Inc. has a PEG-ratio under 1 which is considered undervalued

East West Bancorp, Inc. has a price-to-book ratio of 1.97x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

East West Bancorp, Inc. has a price-to-sales ratio of 4.79x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue