Epam Systems Stock Market Value
| EPAM Stock | USD 247.22 1.78 0.71% |
| Symbol | EPAM |
EPAM Systems Price To Book Ratio
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 7.07 | 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.
EPAM Systems 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to EPAM Systems' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of EPAM Systems.
| 02/19/2024 |
| 04/19/2024 |
If you would invest 0.00 in EPAM Systems on February 19, 2024 and sell it all today you would earn a total of 0.00 from holding EPAM Systems or generate 0.0% return on investment in EPAM Systems over 60 days. EPAM Systems is related to or competes with Information Services, Home Bancorp, CRA International, Morningstar Unconstrained, Thrivent High, Via Renewables, and T Rowe. EPAM Systems, Inc. provides digital platform engineering and software development services worldwide More
EPAM Systems Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure EPAM Systems' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess EPAM Systems upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.16) | |||
| Maximum Drawdown | 12.83 | |||
| Value At Risk | (3.28) | |||
| Potential Upside | 2.69 |
EPAM Systems Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for EPAM Systems' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as EPAM Systems' standard deviation. In reality, there are many statistical measures that can use EPAM Systems historical prices to predict the future EPAM Systems' volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (0.48) | |||
| Treynor Ratio | (0.14) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of EPAM Systems' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
EPAM Systems Backtested Returns
EPAM Systems retains Efficiency (Sharpe Ratio) of -0.13, which denotes the company had a -0.13% return per unit of risk over the last 3 months. EPAM Systems exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm EPAM Systems' Standard Deviation of 2.11, market risk adjusted performance of (0.13), and Variance of 4.43 to check the risk estimate we provide. The firm owns a Beta (Systematic Risk) of 2.07, which means a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, EPAM Systems will likely underperform. EPAM Systems has an expected return of -0.28%. Please make sure to confirm EPAM Systems standard deviation, kurtosis, period momentum indicator, as well as the relationship between the maximum drawdown and day median price , to decide if EPAM Systems performance from the past will be repeated in the future.
Auto-correlation | 0.41 |
Average predictability
EPAM Systems has average predictability. Overlapping area represents the amount of predictability between EPAM Systems time series from 19th of February 2024 to 20th of March 2024 and 20th of March 2024 to 19th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of EPAM Systems price movement. The serial correlation of 0.41 indicates that just about 41.0% of current EPAM Systems price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | 0.19 | |
| Residual Average | 0.0 | |
| Price Variance | 127.42 |
EPAM Systems lagged returns against current returns
Autocorrelation, which is EPAM Systems stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting EPAM Systems' stock expected returns. We can calculate the autocorrelation of EPAM Systems returns to help us make a trade decision. For example, suppose you find that EPAM Systems has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
EPAM Systems regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If EPAM Systems stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if EPAM Systems stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in EPAM Systems stock over time.
Current vs Lagged Prices |
| Timeline |
EPAM Systems Lagged Returns
When evaluating EPAM Systems' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of EPAM Systems stock have on its future price. EPAM Systems autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, EPAM Systems autocorrelation shows the relationship between EPAM Systems stock current value and its past values and can show if there is a momentum factor associated with investing in EPAM Systems.
Regressed Prices |
| Timeline |
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.Moving together with EPAM Stock
| 0.69 | G | Genpact Limited Financial Report 8th of May 2024 | PairCorr |
| 0.62 | DMRC | Digimarc | PairCorr |
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.Check out EPAM Systems Correlation, EPAM Systems Volatility and EPAM Systems Alpha and Beta module to complement your research on EPAM Systems. 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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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EPAM Systems technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.