EPAM SYSTEMS INC (EPAM) Fundamental Analysis & Valuation
NYSE:EPAM • US29414B1044
140.9 USD
+0.13 (+0.09%)
At close: Mar 4, 2026
140.9 USD
0 (0%)
After Hours: 3/4/2026, 6:40:00 PM
This EPAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to EPAM. EPAM was compared to 86 industry peers in the IT Services industry. EPAM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. EPAM has a decent growth rate and is not valued too expensively.
1. EPAM Profitability Analysis
1.1 Basic Checks
- In the past year EPAM was profitable.
- EPAM had a positive operating cash flow in the past year.
- Each year in the past 5 years EPAM has been profitable.
- EPAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.67%, EPAM is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
- The Return On Equity of EPAM (9.97%) is better than 66.28% of its industry peers.
- The Return On Invested Capital of EPAM (10.51%) is better than 76.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EPAM is in line with the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROIC | 10.51% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
1.3 Margins
- EPAM has a Profit Margin of 7.01%. This is in the better half of the industry: EPAM outperforms 66.28% of its industry peers.
- EPAM's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 10.43%, EPAM is doing good in the industry, outperforming 70.93% of the companies in the same industry.
- In the last couple of years the Operating Margin of EPAM has declined.
- EPAM has a Gross Margin of 28.92%. This is in the lower half of the industry: EPAM underperforms 61.63% of its industry peers.
- In the last couple of years the Gross Margin of EPAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% |
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
2. EPAM Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPAM is creating some value.
- EPAM has less shares outstanding than it did 1 year ago.
- EPAM has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for EPAM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.75 indicates that EPAM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of EPAM (6.75) is better than 88.37% of its industry peers.
- The Debt to FCF ratio of EPAM is 0.05, which is an excellent value as it means it would take EPAM, only 0.05 years of fcf income to pay off all of its debts.
- EPAM has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. EPAM outperforms 90.70% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.01, EPAM belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.75 |
ROIC/WACC1.15
WACC9.15%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.02, EPAM is doing good in the industry, outperforming 76.74% of the companies in the same industry.
- EPAM has a Quick Ratio of 3.02. This indicates that EPAM is financially healthy and has no problem in meeting its short term obligations.
- EPAM's Quick ratio of 3.02 is fine compared to the rest of the industry. EPAM outperforms 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. EPAM Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 5.98% over the past year.
- Measured over the past years, EPAM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
- EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.42%.
- The Revenue has been growing by 15.46% on average over the past years. This is quite good.
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
3.2 Future
- The Earnings Per Share is expected to grow by 4.97% on average over the next years.
- Based on estimates for the next years, EPAM will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. EPAM Valuation Analysis
4.1 Price/Earnings Ratio
- EPAM is valuated correctly with a Price/Earnings ratio of 12.23.
- Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 75.58% of the companies in the same industry.
- EPAM is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 11.06 indicates a reasonable valuation of EPAM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EPAM indicates a rather cheap valuation: EPAM is cheaper than 80.23% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.11. EPAM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- EPAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 74.42% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EPAM is valued a bit cheaper than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)0.97
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. EPAM Dividend Analysis
5.1 Amount
- No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPAM Fundamentals: All Metrics, Ratios and Statistics
140.9
+0.13 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners100.2%
Inst Owner Change3.69%
Ins Owners3.62%
Ins Owner Change-0.28%
Market Cap7.78B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target205.07 (45.54%)
Short Float %7.26%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.91%
Min EPS beat(2)-0.24%
Max EPS beat(2)4.07%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-0.24%
Max EPS beat(4)4.07%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)11
Avg EPS beat(12)5.54%
EPS beat(16)15
Avg EPS beat(16)10.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)-0.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)0.84%
Revenue beat(8)1
Avg Revenue beat(8)-0.58%
Revenue beat(12)1
Avg Revenue beat(12)-0.88%
Revenue beat(16)4
Avg Revenue beat(16)0.18%
PT rev (1m)-7.6%
PT rev (3m)-3.19%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.06 | ||
| P/S | 1.47 | ||
| P/FCF | 16.95 | ||
| P/OCF | 15.5 | ||
| P/B | 2.09 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)11.52
EY8.18%
EPS(NY)12.74
Fwd EY9.04%
FCF(TTM)8.31
FCFY5.9%
OCF(TTM)9.09
OCFY6.45%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.15
PEG (5Y)0.97
Graham Number132.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROCE | 13.78% | ||
| ROIC | 10.51% | ||
| ROICexc | 15.21% | ||
| ROICexgc | 36.93% | ||
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% | ||
| FCFM | 8.67% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
ROICexc(3y)18.6%
ROICexc(5y)23.31%
ROICexgc(3y)40.34%
ROICexgc(5y)45.92%
ROCE(3y)13.79%
ROCE(5y)15.84%
ROICexgc growth 3Y-7.38%
ROICexgc growth 5Y-3.77%
ROICexc growth 3Y-20.19%
ROICexc growth 5Y-14.56%
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 46.68% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.89% | ||
| Profit Quality | 123.54% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 6.75 |
F-Score7
WACC9.15%
ROIC/WACC1.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
EBIT growth 1Y3.34%
EBIT growth 3Y-4.26%
EBIT growth 5Y6.51%
EBIT Next Year18.81%
EBIT Next 3Y9.6%
EBIT Next 5Y10.22%
FCF growth 1Y-19.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.32%
OCF growth 3YN/A
OCF growth 5YN/A
EPAM SYSTEMS INC / EPAM FAQ
What is the fundamental rating for EPAM stock?
ChartMill assigns a fundamental rating of 6 / 10 to EPAM.
What is the valuation status for EPAM stock?
ChartMill assigns a valuation rating of 6 / 10 to EPAM SYSTEMS INC (EPAM). This can be considered as Fairly Valued.
What is the profitability of EPAM stock?
EPAM SYSTEMS INC (EPAM) has a profitability rating of 5 / 10.
What is the valuation of EPAM SYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EPAM SYSTEMS INC (EPAM) is 12.23 and the Price/Book (PB) ratio is 2.09.