EPAM Systems Valuation
| EPAM Stock | USD 247.22 1.78 0.71% |
At this time, the firm appears to be overvalued. EPAM Systems owns a latest Real Value of $228.25 per share. The recent price of the firm is $247.22. Our model computes the value of EPAM Systems from reviewing the firm fundamentals such as Current Valuation of 12.37 B, return on asset of 0.0874, and Shares Outstanding of 57.93 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise obtaining undervalued equities and abandoning overvalued equities since, in the future, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting EPAM Systems' valuation include:
Price Book 4.3178 | Enterprise Value 12.4 B | Enterprise Value Ebitda 19.7943 | Price Sales 3.1951 | Forward PE 46.2963 |
Overvalued
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.
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 247.22 | Real 228.25 | Target 276.03 | Hype 247.18 | Naive 246.3 |
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.
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. When choosing an evaluation method for EPAM Systems, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
EPAM Systems Investments |
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EPAM Valuation Trend
Knowing EPAM Systems' actual value is paramount for traders to make sound investment determinations. EPAM Systems' real value is not only important for the investor to make better decisions but also for a more accurate overall view of EPAM Systems' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both EPAM Systems' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
EPAM Valuation Data Drivers
EPAM valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of EPAM equity instrument and the benefits of owning shares of EPAM Systems.
View More FundamentalsEPAM Market Cap
EPAM Systems is one of the top stocks in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 16.06 Billion. EPAM Systems totals roughly 14.32 Billion in market capitalization claiming about 89% of equities under Information Technology industry.EPAM Systems Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining EPAM Systems's current stock value. Our valuation model uses many indicators to compare EPAM Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across EPAM Systems competition to find correlations between indicators driving EPAM Systems's intrinsic value. More Info.EPAM Systems is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.09 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for EPAM Systems is roughly 11.55 . As of the 19th of April 2024, Price To Book Ratio is likely to grow to 5.46. Comparative valuation analysis is a catch-all model that can be used if you cannot value EPAM Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EPAM Systems' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the EPAM Systems' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates EPAM Systems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in EPAM Systems and how it compares across the competition.
About EPAM Systems Valuation
The stock valuation mechanism determines the current worth of EPAM Systems on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of EPAM Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to 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 | 0.29 | 0.40 |
EPAM Systems Quarterly Retained Earnings |
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8 Steps to conduct EPAM Systems' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates EPAM Systems' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct EPAM Systems' valuation analysis, follow these 8 steps:- Gather financial information: Obtain EPAM Systems' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine EPAM Systems' revenue streams: Identify EPAM Systems' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research EPAM Systems' industry and market trends, including the size of the market, growth rate, and competition.
- Establish EPAM Systems' growth potential: Evaluate EPAM Systems' management, business model, and growth potential.
- Determine EPAM Systems' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate EPAM Systems' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
EPAM Systems Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 | -0.366 | |
| Forward Price Earnings | 46.2963 |
EPAM Systems Current Valuation Indicators
Valuation refers to the process of determining the present value of EPAM Systems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value EPAM we look at many different elements of the entity such as EPAM's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. EPAM Systems' valuation analysis is also 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 tightly coupled 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.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 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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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.