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Is this Large Market Cap Stock target price reasonable for East West Bancorp, Inc. (NASDAQ:EWBC)?

The company in question is, East West Bancorp, Inc. (NASDAQ:EWBC) currently with a stock price of 38.6 (1.29% today). The market cap for East West Bancorp, Inc. is 5484.79, and is in the sector Financial, and Foreign Money Center Banks industry. The target price for East West Bancorp, Inc. is 40.92. Currently East West Bancorp, Inc. is trading with a P/E of 13.9, and a forward P/E of 12.96. Average volume for East West Bancorp, Inc. is 877.45 and so far today it is 345345.

Performance in the last year for East West Bancorp, Inc. has been 2.51%. For EPS growth, East West Bancorp, Inc. has seen a growth of 10.60%, and is looking to grow in the next year to 3.19%. More long term stats show that EPS growth has been 26.40% over the last five years and could be 9.00% for the next five years. East West Bancorp, Inc. has seen sales growth quarter over quarter at -46.20%, with EPS growth quarter over quarter at -48.30%. The 20-day simple moving average is 6.73%, with the 200-day simple moving average coming to 11.33%.

Since the IPO date for East West Bancorp, Inc. on the 02/03/1999, East West Bancorp, Inc. has seen performance year to date to be -6.73%. With East West Bancorp, Inc. trading at 38.6, the dividend yield is 2.10%, and the EPS is 2.74.

So could East West Bancorp, Inc., be undervalued? Well as said before P/E is 13.9. The PEG is 1.54, P/S is 5.03 and the P/B is at 1.67. The P/cash is 1.41, with P/free cash flow at *TBA.

East West Bancorp, Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.06, and total debt/equity at 0.06.

In terms of margins, East West Bancorp, Inc. has a gross margin of *TBA, an operating margin of 89.90% and a profit margin of 36.40%.Payout ratio for East West Bancorp, Inc. is 29.00%. Return on assets come to 1.20% with return on investment coming to 22.30%.

Insider ownership for East West Bancorp, Inc., is at 0.40% and institutional ownership comes to 86.60%. Outstanding shares are at 143.92. While shares float is 142.75. The float short is currently 0.81%, and short ratio is 1.32.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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