EPAM Systems Inc. (EPAM) stock is nearly perfect except the valuation

The closing price of EPAM Systems Inc. (NYSE: EPAM) was $279.93 for the day, up 1.32% from the previous closing price of $276.27. In other words, the price has increased by $+3.66 from its previous closing price. On the day, 571983 shares were traded. EPAM stock price reached its highest trading level at $281.34 during the session, while it also had its lowest trading level at $269.73.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".



Our analysis of EPAM’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 9.71 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 44.21. For the most recent quarter (mrq), Quick Ratio is recorded 3.70 and its Current Ratio is at 3.70. In the meantime, Its Debt-to-Equity ratio is 0.01 whereas as Long-Term Debt/Eq ratio is at 0.01.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Cowen on February 17, 2023, Downgraded its rating to Market Perform and sets its target price to $370 from $390 previously.

On September 13, 2022, KeyBanc Capital Markets started tracking the stock assigning a Overweight rating and target price of $510.KeyBanc Capital Markets initiated its Overweight rating on September 13, 2022, with a $510 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Nov 11 when Peterson Jason D. sold 1,000 shares for $350.00 per share. The transaction valued at 350,000 led to the insider holds 11,762 shares of the business.

Dvorkin Viktar sold 13,333 shares of EPAM for $5,877,720 on Aug 22. The SVP/Head of Global Delivery now owns 7,572 shares after completing the transaction at $440.84 per share. On Aug 18, another insider, Abrahams Gary C, who serves as the VP, Corporate Controller, PAO of the company, sold 557 shares for $452.64 each. As a result, the insider received 252,120 and left with 1,495 shares of the company.

Valuation Measures:

As of this moment, EPAM’s Price-to-Earnings (P/E) ratio for their current fiscal year is 39.54, and their Forward P/E ratio for the next fiscal year is 19.97. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.44. For the stock, the TTM Price-to-Sale (P/S) ratio is 3.50 while its Price-to-Book (P/B) ratio in mrq is 5.37.

Stock Price History:

Over the past 52 weeks, EPAM has reached a high of $462.99, while it has fallen to a 52-week low of $232.30. The 50-Day Moving Average of the stock is 331.50, while the 200-Day Moving Average is calculated to be 348.62.

Shares Statistics:

EPAM traded an average of 409.14K shares per day over the past three months and 490.28k shares per day over the past ten days. A total of 57.58M shares are outstanding, with a floating share count of 55.71M. Insiders hold about 2.20% of the company’s shares, while institutions hold 96.60% stake in the company. Shares short for EPAM as of Jan 30, 2023 were 691.2k with a Short Ratio of 0.79M, compared to 996.8k on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.20% and a Short% of Float of 1.61%.

Earnings Estimates

The firm’s stock currently is rated by 15 analysts. On average, analysts expect EPS of $2.68 for the current quarter, with a high estimate of $2.74 and a low estimate of $2.62, while EPS last year was $2.76. The consensus estimate for the next quarter is $2.79, with high estimates of $2.95 and low estimates of $2.69.

Analysts are recommending an EPS of between $10.7 and $10.62 for the fiscal current year, implying an average EPS of $10.65. EPS for the following year is $12.36, with 14 analysts recommending between $13.15 and $11.72.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 12 analysts. It ranges from a high estimate of $1.24B to a low estimate of $1.22B. As of the current estimate, EPAM Systems Inc.’s year-ago sales were $1.11B, an estimated increase of 11.00% from the year-ago figure. For the next quarter, 10 analysts are estimating revenue of $1.28B, an increase of 9.50% less than the figure of $11.00% in the same quarter last year. There is a high estimate of $1.34B for the next quarter, whereas the lowest estimate is $1.24B.

A total of 15 analysts have provided revenue estimates for EPAM’s current fiscal year. The highest revenue estimate was $4.84B, while the lowest revenue estimate was $4.82B, resulting in an average revenue estimate of $4.82B. In the same quarter a year ago, actual revenue was $3.76B, up 28.30% from the average estimate. Based on 15 analysts’ estimates, the company’s revenue will be $5.6B in the next fiscal year. The high estimate is $5.78B and the low estimate is $5.38B. The average revenue growth estimate for next year is up 16.10% from the average revenue estimate for this year.