EPAM Systems, Inc.

NYSE:EPAM Stock Report

Market Cap: US$14.1b

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 ($248.26) is trading below our estimate of fair value ($329.54)

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 Ratio31.4x
EarningsUS$448.79m
Market CapUS$14.08b

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 Average32.3x
DOX Amdocs
19.9x10.5%US$9.8b
GLOB Globant
56.4x21.1%US$9.6b
IT Gartner
35.6x0.5%US$37.9b
CTSH Cognizant Technology Solutions
17.4x9.2%US$39.3b
EPAM EPAM Systems
31.4x10.4%US$14.1b

Price-To-Earnings vs Peers: EPAM is good value based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (32.3x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTCH GBT Technologies
0.3xn/aUS$3.36m
TAOP Taoping
1.3xn/aUS$2.70m
DLTI DLT Resolution
0.5xn/aUS$405.39k
TMNA Agri-Fintech Holdings
0.0004xn/aUS$129.25k
EPAM 31.4xIndustry Avg. 44.3xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EPAM is good value based on its Price-To-Earnings Ratio (31.4x) 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 Ratio31.4x
Fair PE Ratio34.9x

Price-To-Earnings vs Fair Ratio: EPAM is good value based on its Price-To-Earnings Ratio (31.4x) compared to the estimated Fair Price-To-Earnings Ratio (34.9x).

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$248.26
US$258.74
+4.2%
12.0%US$305.00US$206.00n/a21
Dec ’25US$243.92
US$252.20
+3.4%
10.6%US$300.00US$206.00n/a22
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$222.00US$243.9217
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:07
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

EPAM Systems, Inc. is covered by 41 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Ramsey El-AssalBarclays
Darrin PellerBarclays