Discounted Cash Flow (DCF) Analysis Unlevered

East West Bancorp, Inc. (EWBC)

$65.955

+0.23 (+0.34%)
All numbers are in Millions, Currency in USD
Stock DCF: 147.24 | 65.955 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,352.341,548.021,662.901,599.211,801.311,939.562,088.412,248.692,421.262,607.09
Revenue (%)
EBITDA 1,024.971,223.391,402.581,023.521,300.331,456.051,567.801,688.121,817.681,957.18
EBITDA (%)
EBIT 875.151,083.891,258.40903.611,143.541,281.641,3801,485.911,599.941,722.73
EBIT (%)
Depreciation 149.82139.50144.18119.91156.79174.42187.80202.21217.73234.44
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 5,589.776,114.226,774.5210,372.3614,614.7810,379.0911,175.6512,033.3312,956.8413,951.22
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -13.75-13.79-9.86-2.66-6.02-11.64-12.53-13.50-14.53-15.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 65.955
Beta 1.431
Diluted Shares Outstanding 141.56
Cost of Debt
Tax Rate 17.36
After-tax Cost of Debt 14.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.318
Total Debt 506.86
Total Equity 9,336.85
Total Capital 9,843.72
Debt Weighting 5.15
Equity Weighting 94.85
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,352.341,548.021,662.901,599.211,801.311,939.562,088.412,248.692,421.262,607.09
EBITDA 1,024.971,223.391,402.581,023.521,300.331,456.051,567.801,688.121,817.681,957.18
EBIT 875.151,083.891,258.40903.611,143.541,281.641,3801,485.911,599.941,722.73
Tax Rate 31.22%14.05%20.13%17.20%17.36%19.99%19.99%19.99%19.99%19.99%
EBIAT 601.95931.651,005.09748.17945.011,025.421,104.121,188.851,280.091,378.34
Depreciation 149.82139.50144.18119.91156.79174.42187.80202.21217.73234.44
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure -13.75-13.79-9.86-2.66-6.02-11.64-12.53-13.50-14.53-15.65
UFCF 738.021,057.361,139.40865.421,095.791,188.201,279.391,377.571,483.301,597.13
WACC
PV UFCF 1,075.101,047.421,020.45994.18968.58
SUM PV UFCF 5,105.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.52
Free cash flow (t + 1) 1,629.08
Terminal Value 19,120.61
Present Value of Terminal Value 11,595.71

Intrinsic Value

Enterprise Value 16,701.44
Net Debt -4,142.56
Equity Value 20,844
Shares Outstanding 141.56
Equity Value Per Share 147.24