D/E 0.08 — below the Technology debt median (≈40th pctile)
P/E12.5xA
P/E 12.5 — cheapest decile in Technology (≈10th pctile)
PEG0.45A
PEG 0.45 — exceptional; paying well under fair value for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 83.9
Quality0.72
Growth0.87
Value0.95
Why this score
Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
61% off the 12-month high
vs DCF fair value32% belowest. fair value ~$129
Quality signals · context only
Gross profitability34% · B+gross profit ÷ total assets (Novy-Marx)
ROIC11.8% · Breturn on invested capital — not score-weighted
Why now
EPAM is a deeply undervalued growth engine, trading at an absurdly low PEG Ratio of 0.45 and a P/E of 12.4 despite delivering 15.4% FY YoY revenue growth in mission-critical digital platform engineering and AI services. The market is failing to price in its robust $544m in TTM Free Cash Flow, which provides ample capital for continued innovation and shareholder returns. The crux is that EPAM's essential role in enterprise digital transformation and AI adoption will drive consistent compounding, eventually forcing a significant re-rating.
Moat
EPAM's durable edge stems from its deep integration into client operations through complex digital platform engineering and software development, creating high switching costs once solutions like cross-platform migration and AI implementations are customized. Its specialized expertise in areas such as cloud services, data/analytics/artificial intelligence, and cybersecurity ensures clients rely on EPAM for mission-critical, bespoke solutions, reinforcing long-term relationships. This sticky client base, built on highly specialized engineering services, underpins its consistent 11.3% ROE.
Risk
The market's brutal repricing, evidenced by the stock's fall from a 52-week high of $222.53 to its current $85.99, reflects fears that EPAM's growth in digital platform engineering and software development is highly susceptible to cyclical downturns in enterprise IT spending. Its 7% profit margin could face further compression from intense competition in cloud and AI services, or from wage inflation for its highly skilled engineers. A sustained deceleration in revenue growth below 10%, coupled with further margin erosion, would confirm that EPAM's premium services are becoming commoditized.
Horizon
1-3 yr $142.82 (17-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $180.31 at ~16% CAGR — dividend + buyback compounding. 10 yr $231.24 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · EPAM
$
%
%
Shares to buy
22
Position size
$1,920
3.8% of portfolio
Stop price
$65.47
25% below $87.29
$ at risk if stopped
$480.10
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
EPAM Systems, Inc. (EPAM): score, valuation & FAQ
EPAM Systems, Inc. (EPAM) is a Information Technology Services company that scores 83.9 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A), PEG (A) and Rev (B+). On valuation, EPAM sits about 32% below our discounted-cash-flow fair value (a margin of safety).
Is EPAM a good stock to buy?
Bull Rankings scores EPAM 83.9 out of 100 on its quality-growth model, which is a strong reading. That is driven by P/E (A), PEG (A) and Rev (B+). A score is a quantitative screen of EPAM Systems, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does EPAM score 83.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). EPAM earns its highest marks on P/E (A), PEG (A) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is EPAM overvalued or undervalued?
Based on $87.29, EPAM sits about 32% below our discounted-cash-flow fair value (a margin of safety). It trades at a 12.5x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in EPAM?
The market's brutal repricing, evidenced by the stock's fall from a 52-week high of $222.53 to its current $85.99, reflects fears that EPAM's growth in digital platform engineering and software development is highly susceptible to cyclical downturns in enterprise IT spending. Its 7% profit margin could face further compression from intense competition in cloud and AI services, or from wage inflation for its highly skilled engineers. A sustained deceleration in revenue growth below 10%, coupled with further margin erosion, would confirm that EPAM's premium services are becoming commoditized.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.