Is EPAM Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for EPAM Systems, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 24, an EV to EBIT of 16.45, and an EV to EBITDA of 13.15. In comparison, its peer, which has a P/E ratio of approximately 22, suggests that EPAM's valuation is in line with industry standards.
Despite this fair valuation, EPAM has underperformed relative to the S&P 500, with a year-to-date return of -38.19% compared to the index's 13.30%. This trend continues over longer periods, with a three-year return of -56.66% versus the S&P 500's 81.19%, highlighting significant underperformance. Overall, while EPAM Systems, Inc. is currently fairly valued, its recent stock performance raises concerns about its growth prospects.