EPAM Valuation

Epam Systems Inc

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164.600

+6.89(4.369%)1D

Overview
Forecast
Valuation
Earnings

EPAM Relative Valuation

EPAM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EPAM is overvalued; if below, it's undervalued.

Historical Valuation

Epam Systems Inc (EPAM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.26 is considered Undervalued compared with the five-year average of 33.57. The fair price of Epam Systems Inc (EPAM) is between 236.49 to 509.70 according to relative valuation methord. Compared to the current price of 164.60 USD , Epam Systems Inc is Undervalued By 30.4%.

Relative Value

Fair Zone

236.49-509.70

Current Price：164.60

30.4%

Undervalued

14.26

Trailing

Forward

8.55

EV/EBITDA

Epam Systems Inc. (EPAM) has a current EV/EBITDA of 8.55. The 5-year average EV/EBITDA is 21.47. The thresholds are as follows: Strongly Undervalued below 2.45, Undervalued between 2.45 and 11.96, Fairly Valued between 30.99 and 11.96, Overvalued between 30.99 and 40.50, and Strongly Overvalued above 40.50. The current Forward EV/EBITDA of 8.55 falls within the Undervalued range.

9.29

EV/EBIT

Epam Systems Inc. (EPAM) has a current EV/EBIT of 9.29. The 5-year average EV/EBIT is 23.81. The thresholds are as follows: Strongly Undervalued below 2.26, Undervalued between 2.26 and 13.03, Fairly Valued between 34.59 and 13.03, Overvalued between 34.59 and 45.37, and Strongly Overvalued above 45.37. The current Forward EV/EBIT of 9.29 falls within the Undervalued range.

1.57

Epam Systems Inc. (EPAM) has a current PS of 1.57. The 5-year average PS is 4.19. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 2.26, Fairly Valued between 6.12 and 2.26, Overvalued between 6.12 and 8.05, and Strongly Overvalued above 8.05. The current Forward PS of 1.57 falls within the Undervalued range.

12.32

P/OCF

Epam Systems Inc. (EPAM) has a current P/OCF of 12.32. The 5-year average P/OCF is 24.05. The thresholds are as follows: Strongly Undervalued below -40.87, Undervalued between -40.87 and -8.41, Fairly Valued between 56.51 and -8.41, Overvalued between 56.51 and 88.97, and Strongly Overvalued above 88.97. The current Forward P/OCF of 12.32 falls within the Historic Trend Line -Fairly Valued range.

13.39

P/FCF

Epam Systems Inc. (EPAM) has a current P/FCF of 13.39. The 5-year average P/FCF is 33.81. The thresholds are as follows: Strongly Undervalued below 2.61, Undervalued between 2.61 and 18.21, Fairly Valued between 49.41 and 18.21, Overvalued between 49.41 and 65.01, and Strongly Overvalued above 65.01. The current Forward P/FCF of 13.39 falls within the Undervalued range.

Epam Systems Inc (EPAM) has a current Price-to-Book (P/B) ratio of 2.51. Compared to its 3-year average P/B ratio of 4.49 , the current P/B ratio is approximately -44.12% higher. Relative to its 5-year average P/B ratio of 7.16, the current P/B ratio is about -64.94% higher. Epam Systems Inc (EPAM) has a Forward Free Cash Flow (FCF) yield of approximately 4.66%. Compared to its 3-year average FCF yield of 3.75%, the current FCF yield is approximately 24.49% lower. Relative to its 5-year average FCF yield of 2.98% , the current FCF yield is about 56.59% lower.

2.51

P/B

Median3y

4.49

Median5y

7.16

4.66

FCF Yield

Median3y

3.75

Median5y

2.98

Competitors Valuation Multiple

The average P/S ratio for EPAM's competitors is 2.25, providing a benchmark for relative valuation. Epam Systems Inc Corp (EPAM) exhibits a P/S ratio of 1.57, which is -30.09% above the industry average. Given its robust revenue growth of 18.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CACI International Inc

1.15

13.04%

10.69B

Performance Decomposition

Market capitalization of EPAM decreased by 18.01% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.15B to 1.35B.

The secondary factor is the P/E Change, contributed -11.72%to the performance.

Overall, the performance of EPAM in the past 1 year is driven by Revenue Growth. Which is more sustainable.

18.04%

1.15B → 1.35B

Revenue Growth

-24.33%

8.59 → 6.50

Margin Expansion

-11.72%

26.68 → 23.56

P/E Change

-18.01%