What is EPAM's intrinsic value?

TickerWorth's valuation lenses put EPAM Systems, Inc. (EPAM) between $94.65 and $311.33 per share, versus a market price of $122.19. They disagree too widely for us to state a single fair value, so we publish the range.

Is EPAM overvalued or undervalued?

At $122.19 the price sits inside a range too wide to call either way. We don't call EPAM overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for EPAM?

A WACC of 12.2% and a terminal growth rate of 2.5%.

Is EPAM Systems stock undervalued?

TickerWorth's fair-value range for EPAM Systems, Inc. (EPAM) is $94.65 – $311.33 against a market price of $122.19. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

EPAM Systems (EPAM) DCF valuation and fair value

Our fair-value range for EPAM Systems, Inc. (EPAM) is $94.65 – $311.33, built on a 12.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into EPAM Systems stock?

no growth rate up to 300%/yr justifies the price under these economics This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $122.19. A model estimate, not investment advice.

EPAM Systems (EPAM) insider trading

The most recent insider filing (SEC Form 4) for EPAM Systems, Inc. (EPAM): Fejes Balazs, Director, CEO, President, Director, shares withheld (tax) on 2026-09-01. The latest filings are listed on this page. A disclosure, not a signal to trade.

EPAM · Intrinsic value

Is EPAM Systems, Inc. (EPAM) overvalued or undervalued?

Name: EPAM Systems, Inc. (EPAM) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put EPAM Systems, Inc. (EPAM) at $94.65 – $311.33, too broad a range to say where the delayed market price of $122.19 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full EPAM analysis

What is EPAM worth?

Fair-value range: $94.65 – $311.33
Market price: $122.19
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 13:15 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: no growth rate up to 300%/yr justifies the price under these economics

What is EPAM's TickerWorth Score?

B60/100

Cheap against our estimate — but a weaker business

Compared with Technology companies in US

Its strongest point: looks cheap on the numbers. Its weakest: profitability is weak.

Value · 89 of 100
Cheaper than 89% of Technology companies in US
Price vs worth · 88 of 100
Quality · 36 of 100
More profitable than 36% of Technology companies in US
Financial health · 55 of 100
Financially stronger than 55% of Technology companies in US
Growth · 33 of 100
Growing faster than 33% of Technology companies in US
Momentum · 38 of 100
Outperformed 38% of Technology companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 13:15 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

CLOSE TO FAIR VALUE, NOT A BARGAIN: the model lands only ~7% above today's price. The reverse DCF, holding this model's discount rate and the 2026 guidance, needs ONE of: perpetual growth of ~1.3% (vs 2.5%), a steady GAAP margin of ~10.2% from 2027 (vs 11.0-11.2% modeled and 10.75% guided for 2026), or a beta of ~1.55 (vs 1.39). Each of those is a modest change, so the price is consistent with a slower-growing EPAM rather than a collapsing one.
THE DISCOUNT RATE IS HIGH AND IT IS THE BIGGEST JUDGEMENT. The published 5Y beta (1.39) gives a ~12.2% WACC, well above ACN (~10.2%) or CTSH (~9.2%). The 2-year weekly beta is 1.12; using it adds ~$17/share. The 5-year figure carries the 2022 invasion shock, which is part of why it is kept: no separate country-risk premium is added.
TERMINAL VALUE IS ~64% OF ENTERPRISE VALUE - below the 75% danger line because the high WACC shrinks the far future. The WACC +/-1.5pt and terminal growth +/-1pt grid runs from about $99 to $150.
SBC IS A REAL COST HERE: ~$180M a year (3.2% of revenue) stays expensed. EPAM's non-GAAP EPS - and so its ~8x forward P/E - adds it back along with amortization, restructuring and Ukraine costs; that multiple overstates how cheap the shares are.
YEAR-1 FCF (~$497M) IS ~19% BELOW FY2025's REPORTED $612.7M - inside the 20% threshold but close. Almost all of the gap is SBC (~$133M after tax), which EPAM's FCF adds back and this model does not. FY2025 was also helped by +$144M of accrued variable pay that reversed in H1 2026 (FCF -$71.9M); TTM FCF to June 2026 was ~$483M.
GROWTH IS DECELERATING INTO 2027: guidance was cut twice in 2026 (4.5-7.5% -> 4.0-6.5% -> 3.2-4.2%), and the guide implies Q4 2026 growth of only ~1.4%. The model's 2.0% for 2027 assumes the slide stops there; Investor Day's 'accelerating growth through 2028' is not credited.
WHAT THE AUTOMATIC MODEL LIKELY MISSED (only what the filings show): (1) FY2025's 15.4% revenue growth was mostly acquired - organic constant-currency growth was 4.9%, and 2026 is guided at 3.7% with an exit rate near 1.4%; a feed that extrapolates reported growth overstates the future badly; (2) EPAM's reported FCF of $613M adds back $177M of SBC and includes a +$144M accrual swing that has since reversed; (3) a feed still reading year-end 2025 cash overstates net cash by ~$0.5B (~$9.70/share). The rest of the gap is the automatic model's own growth, margin and discount-rate assumptions, which cannot be seen from the filings.

Why EPAM gets a range, not one number

At a recent price of $122.19, EPAM Systems, Inc. (EPAM) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $94.65 and $311.33 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts EPAM Systems, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 12.2%, with a long-run terminal growth rate of 2.5%. About 64% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, EPAM's modeled DCF value ranges from about $98.79 to $149.61 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what EPAM Systems, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of EPAM's intrinsic value. Figures update as new filings and prices come in.

Every input behind EPAM's DCF

Input	Value	Source
Base-year revenueEPAM FY2025 Form 10-K (accession 0001352010-26-000015, filed 2026-02-26): Revenues $5,457,056K, +15.4% on FY2024's $4,727,940K. MOST OF THAT GROWTH WAS BOUGHT: organic constant-currency growth was 4.9% (Q4/FY2025 release, 8-K Ex-99.1, accession 0001352010-26-000010); the rest is the 2024 acquisitions of NEORIS and First Derivative ($912M of deal cash in 2024) annualizing, plus FX. Calendar fiscal year, so FY2025 is the latest completed 10-K year and FY2026 is Year 1. CROSS-CHECK: H1 2026 revenue $2,814.8M, +6.0% YoY (+3.5% organic cc); Q2 2026 $1,414.8M, +4.5% (+3.4% organic cc) (Q2 2026 release). TTM to 2026-06-30: $5,616.7M.	$5,457,100,000	EPAM FY2025 Form 10-K (accession 0001352010-26-000015, filed 2026-02-26): Revenues $5,457,056K, +15.4% on FY2024's $4,727,940K. MOST OF THAT GROWTH WAS BOUGHT: organic constant-currency growth was 4.9% (Q4/FY2025 release, 8-K Ex-99.1, accession 0001352010-26-000010); the rest is the 2024 acquisitions of NEORIS and First Derivative ($912M of deal cash in 2024) annualizing, plus FX. Calendar fiscal year, so FY2025 is the latest completed 10-K year and FY2026 is Year 1. CROSS-CHECK: H1 2026 revenue $2,814.8M, +6.0% YoY (+3.5% organic cc); Q2 2026 $1,414.8M, +4.5% (+3.4% organic cc) (Q2 2026 release). TTM to 2026-06-30: $5,616.7M.
Base EBIT marginEPAM FY2025 Form 10-K (accession 0001352010-26-000015, filed 2026-02-26): GAAP income from operations $520,003K / $5,457,056K = 9.53%. It is AFTER stock-based compensation $176.8M (3.24% of revenue), amortization of acquired intangibles $71.4M (1.31%), cost-optimization (restructuring) charges $47.9M (0.88%), Ukraine humanitarian costs $14.6M (0.27%) and $1.2M of other deal costs; EPAM's non-GAAP margin, which adds these back, was 15.2% (Q4/FY2025 release reconciliation). Used by the engine only for the cyclical check; the forecast starts from the 2026 guide. CROSS-CHECK: H1 2026 GAAP $269.0M / $2,814.8M = 9.6% (non-GAAP 15.4%); Q2 alone 10.8% GAAP / 16.4% non-GAAP.	9.5%	EPAM FY2025 Form 10-K (accession 0001352010-26-000015, filed 2026-02-26): GAAP income from operations $520,003K / $5,457,056K = 9.53%. It is AFTER stock-based compensation $176.8M (3.24% of revenue), amortization of acquired intangibles $71.4M (1.31%), cost-optimization (restructuring) charges $47.9M (0.88%), Ukraine humanitarian costs $14.6M (0.27%) and $1.2M of other deal costs; EPAM's non-GAAP margin, which adds these back, was 15.2% (Q4/FY2025 release reconciliation). Used by the engine only for the cyclical check; the forecast starts from the 2026 guide. CROSS-CHECK: H1 2026 GAAP $269.0M / $2,814.8M = 9.6% (non-GAAP 15.4%); Q2 alone 10.8% GAAP / 16.4% non-GAAP.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	4% → 2% → 3% → 3% → 3%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every researched model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every researched model in this tracker.
BetaYahoo Finance / yfinance published 5Y-monthly beta + own regressions: Published 5Y-monthly beta 1.386, used AS IS (rounded to 1.39) - no normalization, consistent with the ACN and CTSH models, which also held their published figures. Recomputed independently: 5Y monthly vs the S&P 500 = 1.32 (59 returns), so the published figure is not a feed error; but the 2-year WEEKLY beta is only 1.12 (104 returns) and the 1-year daily 0.56. The 5-year window contains the 2022 Russian invasion of Ukraine, when EPAM - then with most of its engineers in Ukraine, Belarus and Russia - fell ~70% while the market was also falling, which lifts the measured covariance. I keep the higher figure deliberately: no separate country-risk premium is added, although EPAM still has delivery staff and cash in Ukraine and Belarus (the 10-Q reports $34.1M and $37.5M of cash in banks there), and the stock has just been dropped from the S&P 500 to the SmallCap 600. CONSERVATIVE: using the 2Y weekly 1.12 would add ~$17/share; this is the single biggest discount-rate judgement.	1.39	Yahoo Finance / yfinance published 5Y-monthly beta + own regressions: Published 5Y-monthly beta 1.386, used AS IS (rounded to 1.39) - no normalization, consistent with the ACN and CTSH models, which also held their published figures. Recomputed independently: 5Y monthly vs the S&P 500 = 1.32 (59 returns), so the published figure is not a feed error; but the 2-year WEEKLY beta is only 1.12 (104 returns) and the 1-year daily 0.56. The 5-year window contains the 2022 Russian invasion of Ukraine, when EPAM - then with most of its engineers in Ukraine, Belarus and Russia - fell ~70% while the market was also falling, which lifts the measured covariance. I keep the higher figure deliberately: no separate country-risk premium is added, although EPAM still has delivery staff and cash in Ukraine and Belarus (the 10-Q reports $34.1M and $37.5M of cash in banks there), and the stock has just been dropped from the S&P 500 to the SmallCap 600. CONSERVATIVE: using the 2Y weekly 1.12 would add ~$17/share; this is the single biggest discount-rate judgement.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Not obviously conservative: EPAM's growth has been guided down twice in 2026 and the bear case is that AI permanently shrinks the pool of billable engineering hours. 2.0% takes ~$3.60/share off; 3.0% adds ~$4.00. Must stay well below the ~12.2% WACC; it does.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Not obviously conservative: EPAM's growth has been guided down twice in 2026 and the bear case is that AI permanently shrinks the pool of billable engineering hours. 2.0% takes ~$3.60/share off; 3.0% adds ~$4.00. Must stay well below the ~12.2% WACC; it does.
Diluted sharesEPAM Q2 2026 results release, 8-K Ex-99.1 (accession 0001352010-26-000043, furnished 2026-08-06): Q2 2026 weighted-average diluted shares 52,267K (H1 2026 53,220K; FY2025 56,233K). House rule makes this conservative: EPAM retired 3.18M shares in H1 2026 ($409M, including a $300M accelerated repurchase with Morgan Stanley that settled on 2026-04-17 with 2.24M shares in total), so 51,585K were outstanding at 2026-06-30 and Q3 is guided at 51.4M diluted. Because that cash has already left the balance sheet, the larger weighted count charges part of it twice; using 51.4M would add ~$1.90/share. SBC dilution (~$180M a year, ~3% of today's market cap) stays a real expense in EBIT.	52M	EPAM Q2 2026 results release, 8-K Ex-99.1 (accession 0001352010-26-000043, furnished 2026-08-06): Q2 2026 weighted-average diluted shares 52,267K (H1 2026 53,220K; FY2025 56,233K). House rule makes this conservative: EPAM retired 3.18M shares in H1 2026 ($409M, including a $300M accelerated repurchase with Morgan Stanley that settled on 2026-04-17 with 2.24M shares in total), so 51,585K were outstanding at 2026-06-30 and Q3 is guided at 51.4M diluted. Because that cash has already left the balance sheet, the larger weighted count charges part of it twice; using 51.4M would add ~$1.90/share. SBC dilution (~$180M a year, ~3% of today's market cap) stays a real expense in EBIT.
Market priceDelayed quote · as of 2026-10-19 13:15 UTC	$122.19	Delayed quote · as of 2026-10-19 13:15 UTC

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What does EPAM Systems, Inc. do?

What does it do?

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. It operates in the Information Technology Services industry (Technology sector), headquartered in United States. The company employs roughly 62,850 people.

How does it make money?

The business turns $5.6B in annual revenue into profit. Out of every $100 of sales, about $11 is left as operating profit (operating margin of 10.9%), after a 29% gross margin on the products/services it sells. After all costs, taxes and interest, 7.2% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries heavy debt (4.3× equity), comfortably covers its short-term bills (2.8× current ratio), and is currently profitable.

Who at EPAM filed insider trades?

Recent insider filings for EPAM Systems, Inc.
Date	Insider	Relationship	What happened	Value	Filing
1 Sept 2026	Fejes Balazs	Director, CEO, President, Director	Shares withheld (tax)	$48,545.96	Form 4 for Fejes Balazs (opens sec.gov in a new tab)
22 May 2026	Roman Eugene	Director	Shares withheld (tax)	$69,446.87	Form 4 for Roman Eugene (opens sec.gov in a new tab)
21 May 2026	Vargo Ronald P	Director	Grant / award	—	Form 4 for Vargo Ronald P (opens sec.gov in a new tab)
21 May 2026	Roman Eugene	Director	Grant / award	—	Form 4 for Roman Eugene (opens sec.gov in a new tab)
21 May 2026	Mayoras Richard Michael	Director	Grant / award	—	Form 4 for Mayoras Richard Michael (opens sec.gov in a new tab)
21 May 2026	McMahon Chandra	Director	Grant / award	—	Form 4 for McMahon Chandra (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is EPAM's intrinsic value?
TickerWorth's valuation lenses put EPAM Systems, Inc. (EPAM) between $94.65 and $311.33 per share, versus a market price of $122.19. They disagree too widely for us to state a single fair value, so we publish the range.
Is EPAM overvalued or undervalued?
At $122.19 the price sits inside a range too wide to call either way. We don't call EPAM overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for EPAM?
A WACC of 12.2% and a terminal growth rate of 2.5%.
Is EPAM Systems stock undervalued?
TickerWorth's fair-value range for EPAM Systems, Inc. (EPAM) is $94.65 – $311.33 against a market price of $122.19. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
EPAM Systems (EPAM) DCF valuation and fair value
Our fair-value range for EPAM Systems, Inc. (EPAM) is $94.65 – $311.33, built on a 12.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into EPAM Systems stock?
no growth rate up to 300%/yr justifies the price under these economics This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $122.19. A model estimate, not investment advice.
EPAM Systems (EPAM) insider trading
The most recent insider filing (SEC Form 4) for EPAM Systems, Inc. (EPAM): Fejes Balazs, Director, CEO, President, Director, shares withheld (tax) on 2026-09-01. The latest filings are listed on this page. A disclosure, not a signal to trade.