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 overvalued, with a P/E ratio of 24, which is higher than the peer average of approximately 22.01. Additionally, the EV to EBITDA ratio stands at 13.15, while the industry average is not provided, making it difficult to assess its relative valuation fully. The Price to Book Value is 2.77, suggesting that the stock may not be a bargain at its current price.
In comparison to peers, EPAM Systems, Inc. has a ROCE of 21.59% and a ROE of 11.75%, which are relatively strong metrics but do not sufficiently justify the current valuation levels. Notably, over the past year, EPAM has returned -27.18%, significantly underperforming the S&P 500's 14.08% return, which reinforces the notion that the stock may be overvalued in the current market context.