Stock Analysis

Is Now The Time To Look At Buying EPAM Systems, Inc. (NYSE:EPAM)?

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Today we're going to take a look at the well-established EPAM Systems, Inc. (NYSE:EPAM). The company's stock led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at EPAM Systems’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for EPAM Systems

What's The Opportunity In EPAM Systems?

According to my valuation model, EPAM Systems seems to be fairly priced at around 19.71% above my intrinsic value, which means if you buy EPAM Systems today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $313.97, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that EPAM Systems’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from EPAM Systems?

NYSE:EPAM Earnings and Revenue Growth February 6th 2023

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 86% over the next couple of years, the future seems bright for EPAM Systems. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in EPAM’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on EPAM, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into EPAM Systems, you'd also look into what risks it is currently facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of EPAM Systems.

If you are no longer interested in EPAM Systems, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

What are the risks and opportunities for EPAM Systems?

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide.

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  • Trading at 1.7% below our estimate of its fair value

  • Earnings are forecast to grow 23.93% per year


  • Profit margins (8.7%) are lower than last year (12.8%)

  • Large one-off items impacting financial results

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