What is EPAM Systems, Inc. (EPAM) DCF Fair Value and Intrinsic Value in 2026?

EPAM Systems, Inc. (EPAM) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is EPAM Systems, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

EPAM Systems, Inc. operates in the Technology sector (Information Technology Services) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is EPAM Systems, Inc.'s financial health rating and Piotroski F-Score?

EPAM Systems, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor EPAM Systems, Inc. (EPAM) for quarterly SEC filing thesis breaks?

LocalAlpha audits EPAM Systems, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksEPAM

EPAM

EPAM Systems, Inc.Technology / Information Technology ServicesINTACT

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; cloud services for creating a roadmap to set and refine IT and business goals while identifying new and emerging opportunities leveraging cloud technologies; data, analytics, and artificial intelligence; customer experience; marketing; and cybersecurity. It also offers operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers software product and platform development services, which comprise product research, customer experience design and prototyping, program management, component design and integration, full lifecycle software testing, product deployment and end-user customization, performance tuning, product support and maintenance, managed services, as well as cross-platform migration and modernizing legacy platforms. The company has a collaboration with Wiz to help organizations turn cloud risk intelligence into continuous, AI-powered, and engineering-led remediation across complex multi-cloud environments. The company serves the financial services; consumer goods, retail, and travel; software and hi-tech; business information and media; life sciences and healthcare; and emerging vertical industries. EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

Share Price

$116.90

52W: $73.06 - $222.53

DCF Fair Value

$253.13

+53.8% MoS

Thesis Hub

P/E (TTM)

15.8x

ROIC

8.2%

Operating Margin

10.9%

FCF Yield

10.8%

Debt / Equity

0.04x

Piotroski Score

8/9

Altman Z-Score

4.02

Market Cap

$6B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$253.13

MOS Buy Target (-25%)

$189.85

Valuation Overlays: DCF Fair Value ($253.13) 25% MOS Buy Target ($189.85) Revised Graham ($112.98) Graham Number ($106.43)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$116.90

DCF Fair Value

$250.75

+53.4% MoS

Starting Free Cash Flow ($M)$650M

$100M$650M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.5%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$600M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$5.4B

PV of Terminal Value

$7.1B

Implied Enterprise Value

$12.4B

Implied Equity Value

$13.0B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$686	$723	$763	$805	$850	$888	$928	$969	$1,013	$1,059
Present Value (PV)	$629	$609	$589	$570	$552	$529	$507	$487	$466	$447

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-9.8% Premium

$106.42

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $7.38BVPS: $68.21

Revised Graham Formula-3.5% Premium

$112.98

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings10.2% Yield

$11.88 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.6BYield: 10.2%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-4.6% CAGR (Next 10 Yrs)

At the current price of $116.90, the market is assuming the business will compound Free Cash Flow at -4.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil EPAM with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for EPAM Systems, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 10.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: EPAM Systems, Inc. (EPAM) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for EPAM Systems, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, EPAM Systems, Inc. has an estimated DCF intrinsic fair value of $253.13 per share compared to its current market price of $116.90. This represents an estimated 53.8% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $106.43.