East West Bancorp - Comparative Multiple Analysis

East West Bancorp (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of East West Bancorp

WikiWealth compares East West Bancorp's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with East West Bancorp's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for East West Bancorp.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to East West Bancorp's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for East West Bancorp's Analysis


How does this work? The Comparative Investment Analysis determines the value of East West Bancorp by comparing East West Bancorp financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of East West Bancorp.

See the East West Bancorp cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in East West Bancorp.

Also, see the East West Bancorp's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and East West Bancorp's valuation conclusion for a quick summary.