• If you are wondering whether Hope Bancorp is still good value after its recent run, or if the stock is already pricing in most of the potential upside, this article walks through what the current valuation suggests.
• At a last close of US$12.37, the stock has seen mixed short term moves, with a 2.2% decline over the past week, a 6.4% gain over the last month, a 12.7% gain year to date and a 27.4% gain over the past year, alongside an 83.3% return over three years and 1.5% over five years.
• Recent coverage has focused on Hope Bancorp as part of ongoing sector commentary and company specific updates. This helps frame how investors are thinking about risk and opportunity in regional bank stocks and is useful when weighing whether the current share price reflects company specific factors or broader sentiment toward the banking sector.
• Simply Wall St currently gives Hope Bancorp a valuation score of 4 out of 6. The sections ahead will compare different valuation methods on this basis, then finish with a broader framework that can help you judge value more clearly.

Find out why Hope Bancorp's 27.4% return over the last year is lagging behind its peers.

Approach 1: Hope Bancorp Excess Returns Analysis

The Excess Returns model looks at how much profit Hope Bancorp is expected to generate over and above the return that equity investors require, then capitalizes those excess profits into an estimated intrinsic value per share.

For Hope Bancorp, the starting point is a Book Value of US$17.86 per share and a Stable EPS estimate of US$1.44 per share, based on weighted future Return on Equity estimates from 4 analysts. The Average Return on Equity is 7.69%, while the Cost of Equity is US$1.31 per share. That leaves an Excess Return of US$0.13 per share, which represents the earnings attributed to shareholders after covering their required return.

The model also uses a Stable Book Value of US$18.73 per share, sourced from weighted future Book Value estimates from 2 analysts, to extend those excess returns into the future. Combining these inputs gives an intrinsic value estimate of about US$22.47 per share.

Compared with the recent share price of US$12.37, the Excess Returns model implies the stock is 44.9% undervalued.

Result: UNDERVALUED

Our Excess Returns analysis suggests Hope Bancorp is undervalued by 44.9%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Hope Bancorp.

Approach 2: Hope Bancorp Price vs Earnings

For a profitable bank, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. Investors usually accept a higher P/E when they expect stronger earnings growth or see lower risk, and look for a lower P/E when growth expectations are modest or risks feel higher.

Hope Bancorp currently trades on a P/E of 22.58x. That sits close to the peer average of 23.17x and above the broader Banks industry average of 11.34x. Simply Wall St also provides a Fair Ratio of 23.68x, which is the P/E level that would typically be expected for Hope Bancorp once factors such as its earnings profile, industry, profit margins, market cap and risk characteristics are taken into account.

This Fair Ratio is more tailored than a simple comparison with peers or the industry, because it adjusts for company specific features rather than assuming all banks deserve the same multiple. With Hope Bancorp trading at 22.58x versus a Fair Ratio of 23.68x, the stock screens as modestly undervalued on this metric.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 17 top founder-led companies.

Upgrade Your Decision Making: Choose your Hope Bancorp Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St's Community page you can use Narratives, which link your story about Hope Bancorp to a set of forecasts and a fair value. This helps you compare that fair value with the current share price and keep it updated as news or earnings arrive. One investor might build a more optimistic Hope Bancorp Narrative around the higher US$14.50 analyst target using stronger revenue and margin assumptions, while another might anchor closer to the US$12.00 target with more cautious expectations. You can see both side by side to judge which story you find more convincing.

Do you think there's more to the story for Hope Bancorp? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.