Update shared on10 Sep 2025
Fair value Decreased 1.03%Analysts have modestly lowered EPAM’s price target amid sector-wide caution and macroeconomic uncertainty, balanced by recognition of its undervalued status and improving growth outlook, resulting in a minor decrease in fair value from $213.31 to $211.12.
Analyst Commentary
- Bullish analysts see EPAM’s current valuation as undervalued, with the stock reflecting minimal credit for its recovering growth and successful global delivery reorganization.
- Accelerating organic growth and improved capital allocation are cited as driving a favorable risk/reward profile.
- Trough profitability suggests potential for future margin expansion as restructuring benefits are realized.
- Bearish analysts are cautious due to broad sector concerns, noting lackluster performance across payments, processors, and IT services following overly-optimistic expectations earlier in the year.
- Continued uncertainty regarding macroeconomic factors such as trade environment and consumer spending dampens sentiment despite EPAM’s reputation as a high-quality compounder.
What's in the News
- EPAM completed a $417.69 million share buyback, repurchasing 3.84% of shares outstanding.
- The company raised full-year 2025 revenue growth guidance to 13-15% and expects GAAP diluted EPS of $6.48–$6.64.
- EPAM launched DIAL 3.0, an open-source GenAI platform, and made it available in the new AI Agents and Tools category on AWS Marketplace.
- Announced a multi-year digital transformation partnership with the States of Guernsey, focused on government digital services modernization.
- EPAM was added to the Russell 2500 Value and Russell 2500 Indexes but dropped from multiple Russell Growth Indexes.
Valuation Changes
Summary of Valuation Changes for EPAM Systems
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $213.31 to $211.12.
- The Discount Rate for EPAM Systems remained effectively unchanged, moving only marginally from 8.75% to 8.84%.
- The Future P/E for EPAM Systems remained effectively unchanged, moving only marginally from 24.49x to 24.31x.
Disclaimer
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