Epam Systems Stock Current Valuation

EPAM Stock  USD 276.16  0.21  0.08%   
Valuation analysis of EPAM Systems helps investors to measure EPAM Systems' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 28th of March 2024, Enterprise Value Multiple is likely to drop to 18.10. Fundamental drivers impacting EPAM Systems' valuation include:
Price Book
4.4717
Enterprise Value
13.6 B
Enterprise Value Ebitda
20.6041
Price Sales
3.309
Forward PE
46.2963
Overvalued
Today
276.16
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.
Our valuation method for EPAM Systems is useful when determining the fair value of the EPAM stock, which is usually 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  276.16 Real  238.89 Target  276.03 Hype  276.63
The real value of EPAM Stock, also known as its intrinsic value, is the underlying worth of EPAM Systems Company, which is reflected in its stock price. It is based on EPAM Systems' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
236.65
Downside
238.89
Real Value
304.01
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
2.292.322.40
Details
Hype
Prediction
LowEstimatedHigh
274.39276.63278.87
Details
22 Analysts
Consensus
LowTarget PriceHigh
251.19276.03306.39
Details

EPAM Current Valuation Analysis

EPAM Systems' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Gross Profit1.3B1.5B1.3B1.4B
Total Revenue3.8B4.8B4.7B4.9B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current EPAM Systems Current Valuation

    
  13.6 B  
Most of EPAM Systems' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, EPAM Systems is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

EPAM Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for EPAM Systems is extremely important. It helps to project a fair market value of EPAM Stock properly, considering its historical fundamentals such as Current Valuation. Since EPAM Systems' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of EPAM Systems' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of EPAM Systems' interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, EPAM Systems has a Current Valuation of 13.6 B. This is 29.61% lower than that of the IT Services sector and 16.68% lower than that of the Information Technology industry. The current valuation for all United States stocks is 18.22% higher than that of the company.

EPAM Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses EPAM Systems' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of EPAM Systems could also be used in its relative valuation, which is a method of valuing EPAM Systems by comparing valuation metrics of similar companies.
EPAM Systems is currently under evaluation in current valuation category among related companies.

EPAM Fundamentals

About EPAM Systems Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze EPAM Systems's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of EPAM Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of EPAM Systems based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania. Epam Systems operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 60300 people.

EPAM Systems Investors Sentiment

The influence of EPAM Systems' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in EPAM. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to EPAM Systems' public news can be used to forecast risks associated with an investment in EPAM. The trend in average sentiment can be used to explain how an investor holding EPAM can time the market purely based on public headlines and social activities around EPAM Systems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
EPAM Systems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for EPAM Systems' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average EPAM Systems' news discussions. The higher the estimated score, the more favorable is the investor's outlook on EPAM Systems.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards EPAM Systems in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, EPAM Systems' short interest history, or implied volatility extrapolated from EPAM Systems options trading.

Pair Trading with EPAM Systems

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EPAM Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EPAM Systems will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to EPAM Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EPAM Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EPAM Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling EPAM Systems to buy it.
The correlation of EPAM Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EPAM Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if EPAM Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EPAM Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
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 EPAM Systems Piotroski F Score and EPAM Systems Altman Z Score analysis.
To learn how to invest in EPAM Stock, please use our How to Invest in EPAM Systems guide.
Note that the EPAM Systems information on this page should be used as a complementary analysis to other EPAM Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for EPAM Stock analysis

When running EPAM Systems' price analysis, check to measure EPAM Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EPAM Systems is operating at the current time. Most of EPAM Systems' value examination focuses on studying past and present price action to predict the probability of EPAM Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EPAM Systems' price. Additionally, you may evaluate how the addition of EPAM Systems to your portfolios can decrease your overall portfolio volatility.
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Is EPAM Systems' industry 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
(0.37)
Earnings Share
7.06
Revenue Per Share
81.111
Quarterly Revenue Growth
(0.06)
Return On Assets
0.0874
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.