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East West Bancorp (STU:EW2) Cyclically Adjusted PB Ratio : 1.92 (As of May. 26, 2024)


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What is East West Bancorp Cyclically Adjusted PB Ratio?

As of today (2024-05-26), East West Bancorp's current share price is €67.50. East West Bancorp's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was €35.08. East West Bancorp's Cyclically Adjusted PB Ratio for today is 1.92.

The historical rank and industry rank for East West Bancorp's Cyclically Adjusted PB Ratio or its related term are showing as below:

STU:EW2' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.98   Med: 2.18   Max: 3.65
Current: 1.95

During the past years, East West Bancorp's highest Cyclically Adjusted PB Ratio was 3.65. The lowest was 0.98. And the median was 2.18.

STU:EW2's Cyclically Adjusted PB Ratio is ranked worse than
87.59% of 1193 companies
in the Banks industry
Industry Median: 0.92 vs STU:EW2: 1.95

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

East West Bancorp's adjusted book value per share data for the three months ended in Mar. 2024 was €46.444. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €35.08 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


East West Bancorp Cyclically Adjusted PB Ratio Historical Data

The historical data trend for East West Bancorp's Cyclically Adjusted PB Ratio 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 PB Ratio Chart

East West Bancorp Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.15 2.03 2.72 2.01 1.97

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 PB Ratio 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 1.63 1.51 1.47 1.97 2.10

Competitive Comparison of East West Bancorp's Cyclically Adjusted PB Ratio

For the Banks - Regional subindustry, East West Bancorp's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 PB Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, East West Bancorp's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where East West Bancorp's Cyclically Adjusted PB Ratio falls into.



East West Bancorp Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

East West Bancorp's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=67.50/35.08
=1.92

* 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.

East West Bancorp's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=46.444/131.7762*131.7762
=46.444

Current CPI (Mar. 2024) = 131.7762.

East West Bancorp Quarterly Data

Book Value per Share CPI Adj_Book
201406 13.864 100.560 18.168
201409 14.979 100.428 19.655
201412 16.132 99.070 21.458
201503 18.881 99.621 24.975
201506 18.613 100.684 24.361
201509 19.020 100.392 24.966
201512 19.921 99.792 26.306
201603 20.051 100.470 26.299
201606 20.362 101.688 26.387
201609 20.882 101.861 27.015
201612 22.540 101.863 29.159
201703 23.080 102.862 29.568
201706 22.608 103.349 28.827
201709 21.957 104.136 27.785
201712 22.460 104.011 28.456
201803 22.273 105.290 27.876
201806 24.304 106.317 30.124
201809 25.101 106.507 31.056
201812 26.826 105.998 33.350
201903 27.930 107.251 34.317
201906 28.789 108.070 35.104
201909 30.456 108.329 37.048
201912 31.010 108.420 37.690
202003 31.373 108.902 37.963
202006 31.301 108.767 37.922
202009 30.755 109.815 36.906
202012 30.596 109.897 36.687
202103 31.298 111.754 36.905
202106 32.454 114.631 37.308
202109 34.089 115.734 38.814
202112 36.403 117.630 40.781
202203 36.404 121.301 39.548
202206 37.657 125.017 39.693
202209 40.572 125.227 42.694
202212 40.082 125.222 42.180
202303 41.677 127.348 43.126
202306 42.154 128.729 43.152
202309 43.687 129.860 44.332
202312 45.519 129.419 46.348
202403 46.444 131.776 46.444

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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.


East West Bancorp  (STU:EW2) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


East West Bancorp Cyclically Adjusted PB Ratio Related Terms

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


East West Bancorp (STU:EW2) Business Description

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.

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