EPAM Systems Valuation
| EPAM Stock | USD 245.22 10.72 4.57% |
At this time, the firm appears to be undervalued. EPAM Systems owns a latest Real Value of $279.02 per share. The recent price of the firm is $245.22. Our model computes the value of EPAM Systems from reviewing the firm fundamentals such as Current Valuation of 11.41 B, shares outstanding of 56.72 M, and Return On Asset of 0.0833 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting EPAM Systems' valuation include:
Price Book 3.7425 | Enterprise Value 11.4 B | Enterprise Value Ebitda 17.421 | Price Sales 2.8686 | Forward PE 20.6612 |
Undervalued
Today
Please note that EPAM Systems' price fluctuation is very steady at this time. Calculation of the real value of EPAM Systems is based on 3 months time horizon. Increasing EPAM Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the EPAM stock is determined by what a typical buyer is willing to pay for full or partial control of EPAM Systems. Since EPAM Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of EPAM Stock. However, EPAM Systems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 245.22 | Real 279.02 | Target 276.03 | Hype 244.76 | Naive 242.69 |
The intrinsic value of EPAM Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence EPAM Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of EPAM Systems helps investors to forecast how EPAM stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of EPAM Systems more accurately as focusing exclusively on EPAM Systems' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use EPAM Systems' intrinsic value based on its ongoing forecasts of EPAM Systems' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against EPAM Systems' closest peers.
EPAM Systems Cash |
|
EPAM Valuation Trend
Knowing EPAM Systems' actual value is paramount for traders when making sound investment determinations. Using both EPAM Systems' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
EPAM Revenue by Product
EPAM Systems Total Value Analysis
EPAM Systems is currently forecasted to have valuation of 11.41 B with market capitalization of 13.3 B, debt of 171.94 M, and cash on hands of 1.55 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the EPAM Systems fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
11.41 B | 13.3 B | 171.94 M | 1.55 B |
EPAM Systems Investor Information
About 94.0% of the company shares are held by institutions such as insurance companies. The book value of EPAM Systems was currently reported as 62.67. The company has Price/Earnings To Growth (PEG) ratio of 1.73. EPAM Systems recorded earning per share (EPS) of 7.69. The entity had not issued any dividends in recent years. Based on the key indicators related to EPAM Systems' liquidity, profitability, solvency, and operating efficiency, EPAM Systems is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.14 | 0.1069 |
|
| |||||
| Total Cash From Operating Activities | 590.8 M | 562.6 M |
|
| |||||
| Operating Income | 526.3 M | 501.2 M |
|
|
EPAM Systems Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. EPAM Systems has an asset utilization ratio of 107.77 percent. This suggests that the Company is making $1.08 for each dollar of assets. An increasing asset utilization means that EPAM Systems is more efficient with each dollar of assets it utilizes for everyday operations.EPAM Systems Ownership Allocation
EPAM Systems secures a total of 56.72 Million outstanding shares. The majority of EPAM Systems outstanding shares are owned by institutions. These other corporate entities are usually referred to as non-private investors looking to obtain positions in EPAM Systems to benefit from reduced commissions. Thereupon, outside corporations are subject to a different set of regulations than regular investors in EPAM Systems. Please pay attention to any change in the institutional holdings of EPAM Systems as this could imply that something significant has changed or is about to change at the company. On October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of EPAM Systems's common stock.EPAM Systems Profitability Analysis
The company reported the previous year's revenue of 4.69 B. Net Income was 417.08 M with profit before overhead, payroll, taxes, and interest of 1.56 B.About EPAM Systems Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of EPAM Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of EPAM Systems based exclusively on its fundamental and basic technical indicators. By analyzing EPAM Systems's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of EPAM Systems's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of EPAM Systems. We calculate exposure to EPAM Systems's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of EPAM Systems's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.3 B | 1.4 B | |
| Pretax Profit Margin | 0.11 | 0.14 | |
| Operating Profit Margin | 0.11 | 0.14 | |
| Net Profit Margin | 0.09 | 0.12 | |
| Gross Profit Margin | 0.28 | 0.40 |
EPAM Systems Quarterly Retained Earnings |
|
EPAM Systems Growth Indicators
Investing in growth stocks can be very risky. If the company such as EPAM Systems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 59.1 M | |
| Quarterly Earnings Growth Y O Y | 0.436 | |
| Forward Price Earnings | 20.6612 |
EPAM Systems Current Valuation Indicators
EPAM Systems' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final EPAM Systems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as EPAM Systems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use EPAM Systems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes EPAM Systems' worth.When determining whether EPAM Systems is a strong investment it is important to analyze EPAM Systems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact EPAM Systems' future performance. For an informed investment choice regarding EPAM Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in EPAM Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. To learn how to invest in EPAM Stock, please use our How to Invest in EPAM Systems guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of EPAM Systems. If investors know EPAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about EPAM Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.436 | Earnings Share 7.69 | Revenue Per Share 80.605 | Quarterly Revenue Growth 0.013 | Return On Assets 0.0833 |
The market value of EPAM Systems is measured differently than its book value, which is the value of EPAM that is recorded on the company's balance sheet. Investors also form their own opinion of EPAM Systems' value that differs from its market value or its book value, called intrinsic value, which is EPAM Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EPAM Systems' market value can be influenced by many factors that don't directly affect EPAM Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EPAM Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if EPAM Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EPAM Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.