EPAM Systems Valuation

Is EPAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($237.13) is trading below our estimate of fair value ($299.3)

Significantly Below Fair Value: EPAM is trading below fair value by more than 20%.


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.

EPAM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA17.5x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does EPAM's PE Ratio compare to its peers?

The above table shows the PE ratio for EPAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.4x
DOX Amdocs
17.8x15.8%US$10.0b
GLOB Globant
48.7x21.7%US$7.7b
IT Gartner
39.4x5.9%US$34.7b
CTSH Cognizant Technology Solutions
15.6x8.2%US$33.2b
EPAM EPAM Systems
32.9x13.5%US$13.7b

Price-To-Earnings vs Peers: EPAM is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (30.4x).


Price to Earnings Ratio vs Industry

How does EPAM's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EPAM is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the US IT industry average (22.8x).


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.

EPAM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio39x

Price-To-Earnings vs Fair Ratio: EPAM is good value based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (39x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EPAM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$237.13
US$312.14
+31.6%
13.5%US$369.00US$234.00n/a20
Apr ’25US$272.05
US$318.19
+17.0%
12.9%US$369.00US$234.00n/a20
Mar ’25US$306.83
US$317.78
+3.6%
12.7%US$369.00US$234.00n/a19
Feb ’25US$285.58
US$292.00
+2.2%
12.5%US$350.00US$222.00n/a19
Jan ’25US$297.34
US$268.18
-9.8%
10.2%US$315.00US$222.00n/a17
Dec ’24US$258.89
US$264.18
+2.0%
9.2%US$303.00US$222.00n/a17
Nov ’24US$216.65
US$267.41
+23.4%
8.3%US$301.00US$233.00n/a16
Oct ’24US$255.69
US$271.09
+6.0%
9.2%US$319.00US$233.00n/a16
Sep ’24US$258.55
US$271.09
+4.9%
9.2%US$319.00US$233.00n/a16
Aug ’24US$239.48
US$252.50
+5.4%
9.7%US$300.00US$215.00n/a14
Jul ’24US$224.75
US$246.77
+9.8%
11.7%US$300.00US$215.00n/a13
Jun ’24US$257.94
US$328.59
+27.4%
11.1%US$410.20US$289.00n/a14
May ’24US$279.01
US$390.30
+39.9%
6.5%US$424.00US$323.00n/a14
Apr ’24US$299.00
US$411.02
+37.5%
5.0%US$460.00US$370.00US$272.0513
Mar ’24US$305.59
US$408.80
+33.8%
5.2%US$460.00US$370.00US$306.8314
Feb ’24US$352.77
US$417.79
+18.4%
5.9%US$475.00US$390.00US$285.5814
Jan ’24US$327.74
US$422.93
+29.0%
8.7%US$535.00US$390.00US$297.3415
Dec ’23US$369.60
US$420.93
+13.9%
9.4%US$535.00US$365.00US$258.8915
Nov ’23US$342.24
US$465.71
+36.1%
8.3%US$535.00US$406.00US$216.6514
Oct ’23US$362.19
US$482.57
+33.2%
7.6%US$550.00US$406.00US$255.6914
Sep ’23US$412.21
US$474.36
+15.1%
13.5%US$550.00US$270.00US$258.5514
Aug ’23US$366.42
US$415.14
+13.3%
14.3%US$535.00US$270.00US$239.4814
Jul ’23US$302.12
US$417.79
+38.3%
13.9%US$535.00US$270.00US$224.7514
Jun ’23US$326.28
US$416.36
+27.6%
14.1%US$535.00US$270.00US$257.9414
May ’23US$264.99
US$389.14
+46.9%
29.3%US$722.00US$250.00US$279.0114
Apr ’23US$287.04
US$418.00
+45.6%
41.0%US$830.00US$231.00US$299.0014

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.