Is East West Bancorp, Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for East West Bancorp, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 13, which is lower than the peer average of 12.82 for its closest competitor. Additionally, the company boasts a strong ROCE of 21.57% and an ROE of 14.76%, highlighting its efficient use of capital and profitability.
In comparison to its peers, East West Bancorp, Inc. stands out with a PEG ratio of 2.23, while Ally Financial, Inc. is deemed expensive with a P/E ratio of 17.41. Other peers like First Horizon Corp. have a fair valuation with a P/E of 12.18. The company's recent stock performance has also been impressive, showing a 36.09% return over the past year, significantly outperforming the S&P 500's 10.26% return in the same period, further reinforcing its undervalued status.