EPAM Systems, Inc.

NYSE:EPAM Stock Report

Market Cap: US$12.9b

EPAM Systems Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($234.5) is trading below our estimate of fair value ($333.55)

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?

Key metric: As EPAM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EPAM. This is calculated by dividing EPAM's market cap by their current earnings.
What is EPAM's PE Ratio?
PE Ratio29.6x
EarningsUS$448.79m
Market CapUS$12.91b

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 Average32.2x
DOX Amdocs
19.4x15.5%US$9.5b
GLOB Globant
54.9x20.1%US$9.0b
IT Gartner
37.6x0.5%US$39.9b
CTSH Cognizant Technology Solutions
17.1x9.4%US$37.8b
EPAM EPAM Systems
29.6x10.1%US$12.9b

Price-To-Earnings vs Peers: EPAM is good value based on its Price-To-Earnings Ratio (29.6x) compared to the peer average (32.2x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
1.1xn/aUS$2.35m
GTCH GBT Technologies
0.1xn/aUS$1.68m
DLTI DLT Resolution
0.3xn/aUS$228.03k
TMNA Agri-Fintech Holdings
0.0004xn/aUS$129.25k
EPAM 29.6xIndustry Avg. 44.3xNo. of Companies5PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EPAM is good value based on its Price-To-Earnings Ratio (29.6x) compared to the US IT industry average (44.3x).

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 Ratio29.6x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: EPAM is good value based on its Price-To-Earnings Ratio (29.6x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).

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$234.50
US$249.35
+6.3%
11.7%US$300.00US$195.00n/a23
Nov ’25US$189.22
US$222.79
+17.7%
9.4%US$275.00US$188.00n/a23
Oct ’25US$196.38
US$222.66
+13.4%
9.5%US$275.00US$188.00n/a23
Sep ’25US$200.76
US$219.21
+9.2%
8.9%US$275.00US$188.00n/a23
Aug ’25US$214.94
US$222.77
+3.6%
10.5%US$280.00US$194.93n/a22
Jul ’25US$185.58
US$223.38
+20.4%
14.4%US$310.00US$194.93n/a21
Jun ’25US$177.93
US$225.65
+26.8%
14.7%US$310.00US$194.93n/a20
May ’25US$234.98
US$301.04
+28.1%
14.7%US$369.00US$225.00n/a21
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$233.00US$189.2216
Oct ’24US$255.69
US$271.09
+6.0%
9.2%US$319.00US$233.00US$196.3816
Sep ’24US$258.55
US$271.09
+4.9%
9.2%US$319.00US$233.00US$200.7616
Aug ’24US$239.48
US$252.50
+5.4%
9.7%US$300.00US$215.00US$214.9414
Jul ’24US$224.75
US$246.77
+9.8%
11.7%US$300.00US$215.00US$185.5813
Jun ’24US$257.94
US$328.59
+27.4%
11.1%US$410.20US$289.00US$177.9314
May ’24US$279.01
US$390.30
+39.9%
6.5%US$424.00US$323.00US$234.9814
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

Analyst Forecast: Target price is less than 20% higher than the current share price.

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