Latest Ratios: P/E Ratio 13.3x · EV/EBITDA 5.5x · ROE 10.3%. (2009–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.7B | $11.5B | $13.6B | $17.6B | $19.4B | $39.5B | $20.9B | $12.2B | $6.6B | $5.9B | $3.4B |
| Enterprise Value | $3.5B | $10.4B | $12.4B | $15.7B | $17.9B | $38.3B | $19.9B | $11.6B | $5.8B | $5.3B | $3.1B |
| P/E Ratio → | 13.33 | 30.49 | 29.82 | 42.12 | 46.23 | 82.02 | 63.99 | 46.83 | 27.36 | 81.39 | 34.39 |
| P/S Ratio | 0.86 | 2.11 | 2.87 | 3.75 | 4.02 | 10.51 | 7.88 | 5.33 | 3.57 | 4.07 | 2.95 |
| P/B Ratio | 1.37 | 3.13 | 3.73 | 5.06 | 6.46 | 15.82 | 10.56 | 7.67 | 5.21 | 6.06 | 4.38 |
| P/FCF | 7.64 | 18.80 | 25.72 | 32.89 | 50.70 | 85.68 | 44.04 | 65.03 | 25.82 | 35.68 | 25.26 |
| P/OCF | 7.14 | 17.59 | 24.25 | 31.23 | 41.78 | 68.98 | 38.47 | 42.56 | 22.50 | 30.24 | 20.76 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.90 | 2.63 | 3.35 | 3.71 | 10.18 | 7.48 | 5.04 | 3.16 | 3.69 | 2.66 |
| EV / EBITDA | 5.46 | 16.05 | 18.51 | 24.77 | 25.11 | 55.67 | 39.11 | 28.62 | 20.64 | 26.55 | 19.64 |
| EV / EBIT | 6.77 | 20.51 | 22.83 | 29.79 | 31.25 | 71.52 | 52.43 | 38.18 | 23.72 | 30.93 | 23.08 |
| EV / FCF | — | 16.92 | 23.59 | 29.40 | 46.81 | 83.05 | 41.82 | 61.45 | 22.89 | 32.31 | 22.77 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.5% | 26.5% | 30.7% | 30.6% | 31.9% | 33.9% | 34.9% | 35.1% | 35.6% | 36.5% | 36.5% |
| Operating Margin | 9.6% | 9.6% | 11.5% | 10.7% | 11.9% | 14.4% | 14.3% | 13.2% | 13.3% | 11.9% | 11.5% |
| Net Profit Margin | 6.9% | 6.9% | 9.6% | 8.9% | 8.7% | 12.8% | 12.3% | 11.4% | 13.0% | 5.0% | 8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.3% | 10.3% | 12.8% | 12.9% | 15.3% | 21.5% | 18.3% | 18.3% | 21.5% | 8.3% | 14.2% |
| ROA | 7.8% | 7.8% | 10.0% | 10.0% | 11.1% | 15.4% | 13.2% | 13.5% | 16.8% | 6.7% | 11.6% |
| ROIC | 15.5% | 15.5% | 19.8% | 24.1% | 30.7% | 36.7% | 30.8% | 31.5% | 39.5% | 30.1% | 22.5% |
| ROCE | 13.3% | 13.3% | 14.3% | 14.4% | 19.0% | 21.6% | 18.4% | 18.9% | 20.3% | 18.4% | 18.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.04 | 0.05 | 0.06 | 0.10 | 0.13 | 0.17 | 0.02 | 0.03 | 0.03 |
| Debt / EBITDA | 0.22 | 0.22 | 0.24 | 0.27 | 0.27 | 0.35 | 0.52 | 0.65 | 0.09 | 0.12 | 0.16 |
| Net Debt / Equity | — | -0.31 | -0.31 | -0.54 | -0.50 | -0.48 | -0.53 | -0.42 | -0.59 | -0.57 | -0.43 |
| Net Debt / EBITDA | -1.78 | -1.78 | -1.67 | -2.94 | -2.09 | -1.76 | -2.08 | -1.67 | -2.64 | -2.77 | -2.15 |
| Debt / FCF | — | -1.88 | -2.13 | -3.49 | -3.89 | -2.62 | -2.22 | -3.58 | -2.93 | -3.37 | -2.49 |
| Interest Coverage | — | — | — | — | — | 309.85 | — | — | — | — | — |
Net cash position: cash ($1.3B) exceeds total debt ($144M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.59 | 2.59 | 2.96 | 4.79 | 3.69 | 2.97 | 4.11 | 3.81 | 4.56 | 5.31 | 5.56 |
| Quick Ratio | 2.59 | 2.59 | 2.96 | 4.79 | 3.69 | 2.97 | 4.11 | 3.81 | 4.56 | 5.31 | 5.54 |
| Cash Ratio | 1.33 | 1.33 | 1.57 | 3.25 | 2.33 | 1.89 | 2.97 | 2.42 | 2.93 | 3.22 | 3.12 |
| Asset Turnover | — | 1.11 | 1.00 | 1.08 | 1.20 | 1.07 | 0.98 | 1.02 | 1.14 | 1.16 | 1.25 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | 307.16 |
| Days Sales Outstanding | — | 74.12 | 77.37 | 69.80 | 70.56 | 74.68 | 68.77 | 79.20 | 79.69 | 88.61 | 82.84 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.5% | 3.3% | 3.4% | 2.4% | 2.2% | 1.2% | 1.6% | 2.1% | 3.7% | 1.2% | 2.9% |
| FCF Yield | 13.1% | 5.3% | 3.9% | 3.0% | 2.0% | 1.2% | 2.3% | 1.5% | 3.9% | 2.8% | 4.0% |
| Buyback Yield | 0.0% | 0.0% | 2.9% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 2.9% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $56M | $58M | $59M | $59M | $59M | $58M | $58M | $57M | $55M | $53M |
Geopolitical delivery footprint disruption
Based on reported figures, EPAM trades at a forward P/E of 6.18, which significantly trails its historical averages and peer group multiples, suggesting that the market is heavily discounting the firm's future earnings potential due to ongoing geopolitical risks and margin compression concerns.
The current valuation appears to imply a pessimistic growth outlook, potentially pricing in a permanent shift in the company's ability to command premium rates. Investors should monitor whether this low multiple represents a value opportunity or a structural re-rating of the firm's long-term earnings power.
According to recent financial statements, EPAM's ROIC has declined from 7.7% in 2024Q3 to 3.4% in 2026Q1, indicating a significant decay in the company's ability to generate returns on invested capital as it navigates a complex global delivery footprint transition.
The downward trend in ROIC suggests that the capital deployed into new delivery hubs and talent acquisition is not yet yielding the expected productivity gains. This deterioration warrants further investigation into whether the firm's historical competitive advantage in engineering is being diluted by its rapid geographic expansion.
As reported in regulatory filings, EPAM's asset turnover has remained stagnant at 0.29, while DSO has hovered around 73 days, signaling that the firm's working capital cycle is not improving despite management's efforts to optimize the global delivery model.
The persistent length of the collection cycle suggests that the company may be granting more lenient payment terms to maintain client relationships in a competitive environment. This lack of efficiency in converting billable hours into cash flow may continue to pressure the firm's liquidity position.
Based on peer benchmarking, EPAM's EV/EBITDA of 4.74 is notably lower than the broader IT services group, reflecting a structural discount compared to peers like Globant and Infosys that may stem from its unique exposure to Central and Eastern European delivery risks.
While the valuation gap appears wide, it may be justified by the divergence in profitability metrics, as peers like Infosys maintain significantly higher net margins. Investors should consider whether the current discount adequately compensates for the operational risks inherent in EPAM's specific business model.
Data from recent filings suggests that the P/E ratio is a misleading metric for EPAM, as it obscures the significant impact of stock-based compensation and non-recurring relocation costs that currently distort the firm's true underlying earnings power.
Analysts should instead focus on EV/EBITDA or cash-flow-based metrics to better understand the company's operational performance. Relying on P/E may lead to an inaccurate assessment of the firm's valuation, as it fails to account for the capital-intensive nature of the current geographic pivot.
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying EPAM stock.
EPAM Systems, Inc.'s current P/E ratio is 13.3x. The historical average is 43.6x.
EPAM Systems, Inc.'s current EV/EBITDA is 5.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.3x.
EPAM Systems, Inc.'s return on equity (ROE) is 10.3%. The historical average is 25.8%.
Based on historical data, EPAM Systems, Inc. is trading at a P/E of 13.3x. Compare with industry peers and growth rates for a complete picture.
EPAM Systems, Inc. has 26.5% gross margin and 9.6% operating margin.
EPAM Systems, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.