A Look at EPAM Systems’s Valuation Following New Cloud, AI, and Immersive Tech Initiatives

EPAM Systems (NYSE:EPAM) has been busy on multiple fronts, expanding its collaboration with Oracle to offer integrated cloud and AI services. The company has also launched innovative projects, such as an immersive spatial experience with BOSS and Apple Vision Pro.

These moves, along with unifying operations under the EPAM NEORIS brand for Ibero-America, highlight the company's focus on digital transformation and tailored client engagement across new markets.

See our latest analysis for EPAM Systems.

The past year brought big ambitions but also big challenges for EPAM Systems. Despite headline-grabbing alliances and innovative projects in AI and immersive technology, the company’s share price return is down nearly 38% year-to-date, and the total shareholder return for the past twelve months lags at -27%. With tech momentum in flux, the market seems to be recalibrating expectations around growth and risk. It will be telling to see how these initiatives shape sentiment going forward.

If digital transformation stories like EPAM's have you curious, it could be the ideal time to broaden your perspective and discover fast growing stocks with high insider ownership

With shares still trading well below their analyst price target, investors may be asking if EPAM is now undervalued or if its recent challenges suggest the market already has future growth risks priced in. Does this present a buying opportunity, or is caution still warranted?

Most Popular Narrative: 32.6% Undervalued

Compared to its last close of $142.38, the narrative’s fair value for EPAM sits markedly higher. This reflects optimism around margin recovery and growth levers, creating an impression of a stock that consensus believes could rebound sharply if key catalysts occur.

EPAM's strategic investments in AI-native services, proprietary platforms (such as DIAL and AI/RUN), and upskilling of over 80% of its workforce have positioned it as a transformation partner for clients moving beyond pilot AI programs to large-scale deployments. These factors support sustainable revenue growth and the potential for improved net margins as EPAM moves up the value chain.

Read the complete narrative.

Want to unlock what’s driving this bullish outlook? The secret sauce lies in higher-value work, sharper execution, and a future profit surge that analysts are incorporating into the narrative. Wondering which bold predictions back up such a major valuation gap? Dive in and see what’s fueling the optimism around EPAM’s next act.

Result: Fair Value of $211.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent wage inflation and the rapid rise of low-code AI tools could pose meaningful headwinds. These factors may potentially challenge EPAM’s growth and profitability outlook.

Find out about the key risks to this EPAM Systems narrative.

Build Your Own EPAM Systems Narrative

If your perspective differs or you prefer charting your own path, you can dig into the numbers and build a custom narrative in just a few minutes. Do it your way

A great starting point for your EPAM Systems research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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