Discounted Cash Flow

East West Bancorp Inc.

EWBC · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.0b $431.7m $641.9m 41.8% $3.00
2017 $1.2b (14.8%) $505.6m (17.1%) $683.2m (6.4%) 42.7% (2.1%) $3.50 (16.7%)
2018 $53.6m (-95.5%) $703.7m (39.2%) $869.4m (27.3%) 1311.8% (2974.6%) $4.86 (38.9%)
2019 $55.3m (3.1%) $674.0m (-4.2%) $726.0m (-16.5%) 1218.5% (-7.1%) $4.63 (-4.7%)
2020 $1.4b (2389.7%) $567.8m (-15.8%) $690.7m (-4.9%) 41.2% (-96.6%) $3.99 (-13.8%)
2021 $1.5b (11.2%) $873.0m (53.7%) $1.2b (68.3%) 57.0% (38.3%) $6.16 (54.4%)
2022 $2.0b (33.6%) $1.1b (29.2%) $2.1b (77.7%) 55.1% (-3.3%) $7.98 (29.5%)
2023 $2.3b (13.0%) $1.2b (2.9%) $1.4b (-31.0%) 50.2% (-8.9%) $8.23 (3.1%)
2024 $2.3b (-1.5%) $1.2b (0.4%) $1.4b (-0.9%) 51.2% (1.9%) $8.39 (1.9%)
2025 $2.6b (12.0%) $1.3b (13.7%) $1.5b (6.4%) 51.9% (1.5%) $9.58 (14.2%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model