Is East West Bancorp, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for East West Bancorp, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 13, which is lower than the peer average of 15.04 for East West Bancorp, while the EV to EBITDA ratio is 9.03, indicating a competitive valuation compared to peers like First Horizon Corp. at 13.43. Additionally, the PEG ratio of 2.23 suggests that the stock may not be undervalued relative to its growth expectations.
In terms of peer comparison, East West Bancorp, Inc. is positioned against Ally Financial, Inc. which has a higher P/E of 18.81, indicating that East West may be a more attractive option for value-oriented investors. The company's recent stock performance shows a 1-year return of 31.58%, significantly outperforming the S&P 500's 17.82% return, which reinforces its relative strength in the market despite a recent dip in the 1-week return.