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East West Bancorp (STU:EW2) Cyclically Adjusted FCF per Share : €7.00 (As of Mar. 2024)


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What is East West Bancorp Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

East West Bancorp's adjusted free cash flow per share for the three months ended in Mar. 2024 was €1.746. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is €7.00 for the trailing ten years ended in Mar. 2024.

During the past 12 months, East West Bancorp's average Cyclically Adjusted FCF Growth Rate was 13.70% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 21.90% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 14.60% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 9.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of East West Bancorp was 21.90% per year. The lowest was 3.70% per year. And the median was 7.20% per year.

As of today (2024-05-27), East West Bancorp's current stock price is €67.50. East West Bancorp's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €7.00. East West Bancorp's Cyclically Adjusted Price-to-FCF of today is 9.64.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of East West Bancorp was 20.47. The lowest was 5.67. And the median was 12.19.


East West Bancorp Cyclically Adjusted FCF per Share Historical Data

The historical data trend for East West Bancorp's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

East West Bancorp Cyclically Adjusted FCF per Share Chart

East West Bancorp Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.64 3.22 4.40 6.00 6.60

East West Bancorp Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.08 6.24 6.57 6.60 7.00

Competitive Comparison of East West Bancorp's Cyclically Adjusted FCF per Share

For the Banks - Regional subindustry, East West Bancorp's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


East West Bancorp's Cyclically Adjusted Price-to-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, East West Bancorp's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where East West Bancorp's Cyclically Adjusted Price-to-FCF falls into.



East West Bancorp Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, East West Bancorp's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.746/131.7762*131.7762
=1.746

Current CPI (Mar. 2024) = 131.7762.

East West Bancorp Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -0.002 100.560 -0.003
201409 1.056 100.428 1.386
201412 0.842 99.070 1.120
201503 0.804 99.621 1.064
201506 1.011 100.684 1.323
201509 0.814 100.392 1.068
201512 0.305 99.792 0.403
201603 1.124 100.470 1.474
201606 0.512 101.688 0.663
201609 0.873 101.861 1.129
201612 1.505 101.863 1.947
201703 1.187 102.862 1.521
201706 1.178 103.349 1.502
201709 1.610 104.136 2.037
201712 0.183 104.011 0.232
201803 1.201 105.290 1.503
201806 1.237 106.317 1.533
201809 1.505 106.507 1.862
201812 1.115 105.998 1.386
201903 0.824 107.251 1.012
201906 0.907 108.070 1.106
201909 0.590 108.329 0.718
201912 2.106 108.420 2.560
202003 0.566 108.902 0.685
202006 1.122 108.767 1.359
202009 0.963 109.815 1.156
202012 1.501 109.897 1.800
202103 2.015 111.754 2.376
202106 0.355 114.631 0.408
202109 2.031 115.734 2.313
202112 2.608 117.630 2.922
202203 1.812 121.301 1.968
202206 4.274 125.017 4.505
202209 4.889 125.227 5.145
202212 2.985 125.222 3.141
202303 1.467 127.348 1.518
202306 1.682 128.729 1.722
202309 2.518 129.860 2.555
202312 3.641 129.419 3.707
202403 1.746 131.776 1.746

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


East West Bancorp  (STU:EW2) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

East West Bancorp's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=67.50/7
=9.64

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of East West Bancorp was 20.47. The lowest was 5.67. And the median was 12.19.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


East West Bancorp Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of East West Bancorp's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


East West Bancorp (STU:EW2) Business Description

Industry
Traded in Other Exchanges
Address
135 North Los Robles Avenue, 7th Floor, Pasadena, CA, USA, 91101
East West Bancorp Inc is the holding company for East West Bank, a full-service commercial bank with cross-border operations concentrated in the United States and China. East-West Bank is one of a few U.S. based banks with a full banking license in China. The bank's cost strategy has increasingly focused on expanding its deposit base away from time deposits to commercial deposits. The bank has also taken part in entertainment partnerships between participants in China and Hollywood. Most of these efforts include financing the production and distribution of film and television projects. The bank leverages its cultural and regulatory knowledge in the U.S. and China to assist its customers in entering new markets. Most of its earning assets are in loans held for investment.

East West Bancorp (STU:EW2) Headlines

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