EPAM Systems (EPAM): Reassessing Valuation After Strong Q3, Higher Outlook and Major Buyback Program

EPAM Systems (EPAM) just delivered a busy third quarter, combining solid revenue growth, a higher full year outlook, and a major capital return move with an $82.1 million buyback and a fresh $1 billion authorization.

See our latest analysis for EPAM Systems.

Despite today’s softer tone, with the latest share price at $200.46 after a modest pullback, EPAM’s 90 day share price return of 31.44% suggests momentum is rebuilding even as the 1 year total shareholder return remains negative.

If EPAM’s rebound has your attention, this could be a good moment to scout other software and digital leaders using our screen of high growth tech and AI stocks.

With revenue and earnings back in growth mode, a sizable buyback underway, and the stock still trailing its highs, investors now face a key question: Is EPAM undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 3.6% Undervalued

EPAM Systems last closed at $200.46, slightly below the most widely followed fair value estimate of $207.88, framing a modest upside narrative.

The accelerating enterprise adoption of AI is driving a surge in demand for advanced data engineering, cloud migration, and platform modernization projects, areas where EPAM holds deep technical expertise, leading to increased revenue from larger and more complex client engagements.

Read the complete narrative.

Want to see what powers that upside call? The narrative leans on rising margins, steady top line growth, and a future earnings multiple that assumes continued tech leadership. Curious how those moving parts combine into one target number? Take a closer look and unpack the full valuation blueprint.

Result: Fair Value of $207.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising AI driven automation and intensifying competition from hyperscalers could curb EPAM’s pricing power and slow the margin expansion that this narrative assumes.

Find out about the key risks to this EPAM Systems narrative.

Build Your Own EPAM Systems Narrative

If you see the outlook differently or want to examine the numbers yourself, you can build a customized EPAM story in minutes using Do it your way.

A great starting point for your EPAM Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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