NYSE
EPAM
Last Price
US $79.35
KEY FIGURES
MKT CAP
$4.2B
EPS
TTM
$7.19
PEG
TTM
N/M
P/E
TTM
11.53x
P/S
TTM
0.77x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.67%
Return on equity
ROIC: 10.38%
Valuation History
11.5X
Price to Earnings
EV/EBITDA: 5.1X
Cash flow
Profit margin
15.46%
(FY vs FY)
EBITDA Y/Y
4.39%
(FY vs FY)
Cash flow Y/Y
5.20%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $79.35
134.77%
Default assumptions
EBITDA Multiple
Fair Value
Market $79.35
29.55%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
EPAM Systems, Inc. cash flow to debt ratio of 455.75% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
EPAM Systems, Inc.'s free cash flow has increased 16.26% from $527.02M last year to $612.69M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
EPAM Systems, Inc.'s debt to equity ratio is 0.08, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
EPAM Systems, Inc.'s debt has increased relative to shareholder equity from 0.04 last year to 0.08 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
EPAM Systems, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
EPAM Systems, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
EPAM Systems, Inc.'s profit margin has decreased (-27.59%) in the last year from 9.61% to 6.96%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
EPAM Systems, Inc.'s short-term assets of $2.53G exceed its short-term liabilities of $976.94M
Increasing performance - ROA.
EPAM Systems, Inc.'s return on assets of 8.22% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
EPAM Systems, Inc.'s return on equity of 10.67%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
EPAM Systems, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
EPAM Systems, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
EPAM Systems, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
EPAM Systems, Inc. has a free cash flow yield of 14.54%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
EPAM Systems, Inc.'s yearly earnings has decreased -16.91% since last year from $454.53M to $377.68M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
EPAM Systems, Inc.'s yearly revenue has increased 15.42% since last year from $4.73G to $5.46G, signaling increasing performance
Increasing performance - ROIC.
ROIC 10.38% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
EPAM Systems, Inc.'s 3-year revenue CAGR of 4.19% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
EPAM Systems, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
EPAM Systems, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
EPAM Systems, Inc. is undervalued relative to its fair value price of 186.29 based on Discounted Cash Flow model
Undervalued - Earnings yield.
EPAM Systems, Inc. has an earnings yield of 8.91%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
EPAM Systems, Inc. is undervalued relative to its fair value price of 102.80 based on EBITDA multiple model
Undervalued - EV/EBITDA.
EPAM Systems, Inc. has an EV/EBITDA ratio of 5.11x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
EPAM Systems, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
EPAM Systems, Inc. has a price-to-book ratio of 1.26x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
EPAM Systems, Inc. has a price-to-sales ratio of 0.76x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue