Hope Bancorp, Inc. (HOPE)
Valuation Overview•Is Hope Bancorp, Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 46/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
HOPE demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($164M) and minimal debt risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 8.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $258.6M | -3.2% | — | — | +10.5% | |
| EBITDA | $49.3M | — | -34.4% | — | — | |
| Net Income | $34.5M | -41.3% | -35.5% | — | -4.4% | |
| EPS (Diluted) | $0.27 | -43.9% | -36.7% | -12.6% | -8.8% | |
| Free Cash Flow | $69.0M | +41.7% | -31.8% | -1.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 48.6% | 47.9% | 63.5% | 69.5% |
| Operating Margin | 8.3% | 12.6% | 24.3% | 29.3% |
| Net Margin | 6.0% | 9.4% | 18.0% | 20.4% |
| FCF Margin | 15.2% | 22.8% | 36.5% | 31.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.22 | $0.23 | +4.5% | ||
| Q1'26 | $0.26 | $0.27 | +3.8% | ||
| Q4'25 | $0.26 | $0.25 | -2.9% | ||
| Q3'25 | $0.21 | $0.19 | -9.5% | ||
| Q2'25 | $0.18 | $0.19 | +5.6% | ||
| Q1'25 | $0.17 | $0.20 | +17.6% | ||
| Q4'24 | $0.22 | $0.21 | -4.5% | ||
| Q3'24 | $0.22 | $0.22 | +0.0% |
Total return is +32.9% (1Y), outperforming the benchmark by +7.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +19.5% | +10.2% | — |
| 1Y | +32.9% | +7.9% | +5.6% |
| 3YCAGR | +18.4% | -1.3% | +19.2% |
| 5YCAGR | +2.3% | -11.2% | +20.0% |
| 10YCAGR | +1.8% | -11.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Hope Bancorp, Inc. (HOPE) valuation, health, and returns.
Hope Bancorp, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Limited: Slightly cheap versus peers compared to industry peers. overvalued (implying -33.6% downside from DCF intrinsic value of $8.52)
Hope Bancorp, Inc. has multiple valuation anchors: DCF Intrinsic Value: $8.52 | Peer Relative Fair Value: $13.95 | Wall Street Analyst Target: $14.50 (implying +12.9% upside). A convergence of these signals offers higher conviction.
Hope Bancorp, Inc. displays fair financial health with a composite quality score of 46/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 2.3%.
Hope Bancorp, Inc. pays a 4.3% dividend yield, covered by a 121% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Hope Bancorp, Inc.'s current growth trajectory is Accelerating. The company achieved -3.2% 1Y revenue growth and -43.9% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 6 analysts, beating EPS expectations in 50% of recent quarters with a 2-quarter streak. The consensus price target represents a +12.9% change from current levels.
Investment risks for Hope Bancorp, Inc. include: -16.7% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.94x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.