EPAM Systems Valuation
Is EPAM * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of EPAM * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EPAM * (MX$4064) is trading below our estimate of fair value (MX$4224.57)
Significantly Below Fair Value: EPAM * is trading below fair value, but not by a significant amount.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EPAM *?
Other financial metrics that can be useful for relative valuation.
| What is EPAM *'s n/a Ratio? | |
|---|---|
| n/a | 0x |
| n/a | n/a |
| Market Cap | US$13.77b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.5x |
| Enterprise Value/EBITDA | 17.5x |
| PEG Ratio | 2.4x |
Price to Earnings Ratio vs Peers
How does EPAM *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 40.7x | ||
4307 Nomura Research Institute | 28.5x | 10.6% | JP¥2.3t |
TECHM Tech Mahindra | 47.9x | 32.3% | ₹1.1t |
7202 Arabian Internet and Communication Services | 34.3x | 10.5% | ر.س40.8b |
7203 Elm | 52x | 17.3% | ر.س70.5b |
EPAM * EPAM Systems | 33x | 13.5% | Mex$13.8b |
Price-To-Earnings vs Peers: EPAM * is good value based on its Price-To-Earnings Ratio (33x) compared to the peer average (40.7x).
Price to Earnings Ratio vs Industry
How does EPAM *'s PE Ratio compare vs other companies in the Global IT Industry?
Price-To-Earnings vs Industry: EPAM * is expensive based on its Price-To-Earnings Ratio (33x) compared to the Global IT industry average (22.4x).
Price to Earnings Ratio vs Fair Ratio
What is EPAM *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 33x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EPAM *'s Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$4,064.00 | Mex$5,299.84 +30.4% | 14.4% | Mex$6,327.10 | Mex$3,857.99 | n/a | 20 |
| Apr ’25 | n/a | Mex$5,333.28 0% | 12.9% | Mex$6,184.92 | Mex$3,922.14 | n/a | 20 |
| Mar ’25 | n/a | Mex$5,423.41 0% | 12.7% | Mex$6,297.58 | Mex$3,993.58 | n/a | 19 |
| Feb ’25 | n/a | Mex$5,010.34 0% | 12.5% | Mex$6,005.55 | Mex$3,809.23 | n/a | 19 |
| Jan ’25 | Mex$4,995.00 | Mex$4,604.03 -7.8% | 10.2% | Mex$5,407.89 | Mex$3,811.27 | n/a | 17 |
| Dec ’24 | Mex$4,388.33 | Mex$4,550.41 +3.7% | 9.2% | Mex$5,219.14 | Mex$3,823.93 | n/a | 17 |
| Nov ’24 | Mex$3,803.46 | Mex$4,821.28 +26.8% | 8.3% | Mex$5,426.97 | Mex$4,200.94 | n/a | 16 |
| Oct ’24 | Mex$4,452.85 | Mex$4,558.98 +2.4% | 9.2% | Mex$5,364.62 | Mex$3,918.36 | n/a | 16 |
| Sep ’24 | Mex$4,210.00 | Mex$4,558.98 +8.3% | 9.2% | Mex$5,364.62 | Mex$3,918.36 | n/a | 16 |
| Aug ’24 | Mex$4,018.00 | Mex$4,252.28 +5.8% | 9.7% | Mex$5,052.21 | Mex$3,620.75 | n/a | 14 |
| Jul ’24 | Mex$3,913.50 | Mex$4,237.52 +8.3% | 11.7% | Mex$5,151.60 | Mex$3,691.98 | n/a | 13 |
| Jun ’24 | Mex$4,686.99 | Mex$5,834.10 +24.5% | 11.1% | Mex$7,283.18 | Mex$5,131.25 | n/a | 14 |
| May ’24 | Mex$5,000.00 | Mex$6,997.53 +40.0% | 6.5% | Mex$7,601.73 | Mex$5,790.94 | n/a | 14 |
| Apr ’24 | Mex$5,383.00 | Mex$7,407.48 +37.6% | 5.0% | Mex$8,290.30 | Mex$6,668.29 | n/a | 13 |
| Mar ’24 | Mex$5,539.11 | Mex$7,400.47 +33.6% | 5.2% | Mex$8,327.33 | Mex$6,698.07 | n/a | 14 |
| Feb ’24 | n/a | Mex$7,779.59 0% | 5.9% | Mex$8,844.98 | Mex$7,262.19 | n/a | 14 |
| Jan ’24 | n/a | Mex$8,308.44 0% | 8.7% | Mex$10,509.97 | Mex$7,661.47 | Mex$4,995.00 | 15 |
| Dec ’23 | n/a | Mex$8,215.40 0% | 9.4% | Mex$10,441.65 | Mex$7,123.74 | Mex$4,388.33 | 15 |
| Nov ’23 | n/a | Mex$9,277.82 0% | 8.3% | Mex$10,658.11 | Mex$8,088.21 | Mex$3,803.46 | 14 |
| Oct ’23 | n/a | Mex$9,741.14 0% | 7.6% | Mex$11,102.25 | Mex$8,195.48 | Mex$4,452.85 | 14 |
| Sep ’23 | Mex$8,235.00 | Mex$9,607.91 +16.7% | 13.5% | Mex$11,140.03 | Mex$5,468.74 | Mex$4,210.00 | 14 |
| Aug ’23 | Mex$6,982.82 | Mex$8,523.88 +22.1% | 14.3% | Mex$10,984.83 | Mex$5,543.75 | Mex$4,018.00 | 14 |
| Jul ’23 | Mex$6,050.00 | Mex$8,178.45 +35.2% | 13.9% | Mex$10,473.00 | Mex$5,285.44 | Mex$3,913.50 | 14 |
| Jun ’23 | Mex$6,490.00 | Mex$8,306.49 +28.0% | 14.1% | Mex$10,673.46 | Mex$5,386.61 | Mex$4,686.99 | 14 |
| May ’23 | Mex$5,454.00 | Mex$7,853.68 +44.0% | 29.3% | Mex$14,571.40 | Mex$5,045.50 | Mex$5,000.00 | 14 |
| Apr ’23 | Mex$5,922.00 | Mex$8,314.40 +40.4% | 41.0% | Mex$16,509.45 | Mex$4,594.80 | Mex$5,383.00 | 14 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.