East West BankingPHS:EW -0.16%76 Return-on-Tangible-Equity is 10.07% as of Mar. 2026, which is 22% below its 10-year median of 12.86. GuruFocus rates PHS:EW with a GF Score™ of 76/100 and a GF Value™ of ₱13.64 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,525 Banks companies, East West Banking ranks better than 61.31% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. East West Banking's annualized net income for the quarter that ended in Mar. 2026 was ₱7,422 Mil. East West Banking's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₱73,714 Mil. Therefore, East West Banking's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.07%.
The historical rank and industry rank for East West Banking's Return-on-Tangible-Equity or its related term are showing as below:
PHS:EW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.67 Med: 12.86 Max: 16.95
Current: 12.99
During the past 13 years, East West Banking's highest Return-on-Tangible-Equity was 16.95%. The lowest was 8.67%. And the median was 12.86%.
PHS:EW's Return-on-Tangible-Equity is ranked better than 61.31% of 1525
companies
in the Banks industry
Industry Median: 11.21
vs PHS:EW: 12.99
East West Banking (PHS:EW) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
East West Banking Return-on-Tangible-Equity Related Terms
East West Banking Return-on-Tangible-Equity Historical Data
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The historical data trend for East West Banking's Return-on-Tangible-Equity 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.
East West Banking Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, East West Banking's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Banking Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, East West Banking's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where East West Banking's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.07% mean?
East West Banking (PHS:EW) has a Return-on-Tangible-Equity of 10.07% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on East West Banking and its competitors. This is 22% below median its historical median of 12.86. Over the past decade, East West Banking's Return-on-Tangible-Equity has ranged from 8.67 to 16.95. According to the industry distribution chart, East West Banking ranks #590 out of 1525 companies in the Banks industry, placing it in the top 38.7%.
Is East West Banking's Return-on-Tangible-Equity too high?
East West Banking's current Return-on-Tangible-Equity of 10.07% is 22% below median its 10-year median of 12.86. Over the past 10 years, this metric has ranged from a low of 8.67 to a high of 16.95. The Banks industry median Return-on-Tangible-Equity is 11.21. East West Banking's value of 10.07% is 10.2% below this industry median. Based on the distribution chart, East West Banking ranks #590 out of 1525 companies in the Banks industry, which is above the industry midpoint. Overall, East West Banking has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East West Banking's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, East West Banking ranks #590 out of 1525 companies for Return-on-Tangible-Equity. This puts East West Banking in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.21. East West Banking's value of 10.07% is 10.2% below this benchmark. Historically, East West Banking's own Return-on-Tangible-Equity has ranged from 8.67 to 16.95 over the past decade. While the company's 10-year median is 12.86 vs. the industry median of 11.21, East West Banking has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.21, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. East West Banking's current Return-on-Tangible-Equity of 10.07% is 10.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on East West Banking and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East West Banking's current Return-on-Tangible-Equity is 10.07%, which is 22% below median its own 10-year median of 12.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East West Banking stock overvalued right now?
Based on GuruFocus' analysis, East West Banking (PHS:EW) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱13.64, compared to a current price of ₱12.16 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Equity is 10.07%, which is 22% below median its 10-year median of 12.86 and 10.2% below the Banks industry median of 11.21. East West Banking's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For East West Banking (PHS:EW), the current Return-on-Tangible-Equity is 10.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is East West Banking (PHS:EW) Overvalued in 2026?
Based on GuruFocus' analysis, East West Banking stock appears to be undervalued.
The current stock price of ₱12.16 is trading 10.9% below its estimated GF Value™ of ₱13.64.
GuruFocus considers East West Banking to be Modestly Undervalued.
Key valuation signals for PHS:EW:
Return-on-Tangible-Equity: 10.07% (22% below median its 10-year median of 12.86)
GF Value™: ₱13.64 vs. price of ₱12.16 (10.9% below fair value)
Industry Position: 10.2% below the Banks median (#590 of 1525)
No single metric tells the full story. See the PHS:EW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East West Banking Corporation is a commercial bank providing financial services in the Philippines. The bank generates all revenue domestically. The bank operates through four segments: the Retail banking segment offers traditional branch banking products and services such as deposits, back-to-back/emerging market loans, and other over-the-counter (OTC) transactions, the Corporate banking segment handles lending and trade financing for both large corporations and middle-market clients, the Consumer banking segment caters to loans for individuals, and Treasury and Trust segment consists of treasury and trust operations of the Group. The company derives a majority of its revenue from the Consumer banking segment.
76GF Score
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