EPAM SYSTEMS INC (EPAM) Fundamental Analysis & Valuation

NYSE:EPAM • US29414B1044

144.58 USD
+3.68 (+2.61%)
At close: Mar 5, 2026
144.33 USD
-0.25 (-0.17%)
After Hours: 3/5/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This EPAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

EPAM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

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.
EPAM Yearly Net Income VS EBIT VS OCF VS FCFEPAM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • EPAM's Return On Assets of 7.67% is fine compared to the rest of the industry. EPAM outperforms 74.42% of its industry peers.
  • EPAM's Return On Equity of 9.97% is fine compared to the rest of the industry. EPAM outperforms 66.28% of its industry peers.
  • EPAM's Return On Invested Capital of 10.51% is fine compared to the rest of the industry. EPAM outperforms 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 RankSector 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%
EPAM Yearly ROA, ROE, ROICEPAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.01%, EPAM is in the better half of the industry, outperforming 66.28% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EPAM has declined.
  • The Operating Margin of EPAM (10.43%) is better than 70.93% of its industry peers.
  • 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.
  • EPAM's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
EPAM Yearly Profit, Operating, Gross MarginsEPAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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9

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.
  • The number of shares outstanding for EPAM has been reduced compared to 1 year ago.
  • EPAM has less shares outstanding than it did 5 years ago.
  • EPAM has a better debt/assets ratio than last year.
EPAM Yearly Shares OutstandingEPAM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
EPAM Yearly Total Debt VS Total AssetsEPAM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • EPAM has an Altman-Z score of 6.76. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
  • EPAM's Altman-Z score of 6.76 is amongst the best of the industry. EPAM outperforms 87.21% of its industry peers.
  • EPAM has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.05, EPAM belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
  • A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
  • EPAM's Debt to Equity ratio of 0.01 is amongst the best of the industry. EPAM outperforms 83.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 6.76
ROIC/WACC1.15
WACC9.14%
EPAM Yearly LT Debt VS Equity VS FCFEPAM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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 RankSector Rank
Current Ratio 3.02
Quick Ratio 3.02
EPAM Yearly Current Assets VS Current LiabilitesEPAM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. EPAM Growth Analysis

3.1 Past

  • EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
  • 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.
  • Looking at the last year, EPAM shows a quite strong growth in Revenue. The Revenue has grown by 15.42% in the last year.
  • Measured over the past years, EPAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.46% on average per year.
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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
EPAM Yearly Revenue VS EstimatesEPAM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
EPAM Yearly EPS VS EstimatesEPAM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

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6

4. EPAM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.55 indicates a correct valuation of EPAM.
  • EPAM's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 76.74% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.74. EPAM is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 11.35, the valuation of EPAM can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EPAM indicates a rather cheap valuation: EPAM is cheaper than 81.40% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.82, EPAM is valued rather cheaply.
Industry RankSector Rank
PE 12.55
Fwd PE 11.35
EPAM Price Earnings VS Forward Price EarningsEPAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EPAM is valued a bit cheaper than 74.42% of the companies in the same industry.
  • 62.79% of the companies in the same industry are more expensive than EPAM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.4
EV/EBITDA 10.19
EPAM Per share dataEPAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • EPAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.18
PEG (5Y)0.99
EPS Next 2Y10.99%
EPS Next 3Y4.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. EPAM Dividend Analysis

5.1 Amount

  • No dividends for EPAM!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

EPAM Fundamentals: All Metrics, Ratios and Statistics

EPAM SYSTEMS INC

NYSE:EPAM (3/5/2026, 8:04:00 PM)

After market: 144.33 -0.25 (-0.17%)

144.58

+3.68 (+2.61%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners100.2%
Inst Owner Change3.69%
Ins Owners3.62%
Ins Owner Change-0.28%
Market Cap7.99B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target205.07 (41.84%)
Short Float %7.26%
Short Ratio3.67
Dividend
Industry RankSector 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 RankSector Rank
PE 12.55
Fwd PE 11.35
P/S 1.51
P/FCF 17.4
P/OCF 15.9
P/B 2.14
P/tB 3.81
EV/EBITDA 10.19
EPS(TTM)11.52
EY7.97%
EPS(NY)12.74
Fwd EY8.81%
FCF(TTM)8.31
FCFY5.75%
OCF(TTM)9.09
OCFY6.29%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.18
PEG (5Y)0.99
Graham Number132.23
Profitability
Industry RankSector 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 RankSector 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 6.76
F-Score7
WACC9.14%
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 12.55 and the Price/Book (PB) ratio is 2.14.