EPAM Systems Inc. (EPAM) Stock

EPAM Systems Inc. trades at a P/E ratio of 21.64, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 12.85 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.37 indicates reasonable value when growth is considered.

With a beta of 1.66, EPAM Systems Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 17% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 2.31 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

EPAM Systems Inc. achieves a profit margin of 7.91%, meaning it retains $7.91 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 9.63% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 11.40% and ROA at 8.49%, the company achieves moderate returns on invested capital.

EPAM Systems Inc.'s revenue grew by 18.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 8.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INFORMATION TECHNOLOGY SERVICES industry averages for proper context.

EPAM Systems Inc. has a market capitalization of $8.6B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 55.70M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INFORMATION TECHNOLOGY SERVICES industry, it competes with other firms in this sector.

EPAM Systems Inc.'s book value per share is $65.85, while the current stock price is $161.97, resulting in a price-to-book (P/B) ratio of 2.46. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

17 analysts cover EPAM with 76% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $211.87 implies 30.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 9 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.