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 based on its current metrics, with a P/E ratio of 24, a Price to Book Value of 2.77, and an EV to EBITDA of 13.15. In comparison, its peer, which has a P/E of 22.01 and an EV to EBITDA of 11.68, suggests that EPAM is slightly above the industry average.
Despite the fair valuation, EPAM's stock has underperformed significantly against the S&P 500, with a year-to-date return of -38.19% compared to the S&P 500's 13.30%. This trend continues over longer periods, with a 3-year return of -56.66% versus the S&P 500's 81.19%. Overall, while EPAM Systems is currently fairly valued, its poor stock performance relative to the benchmark raises concerns about its future growth prospects.