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EPAM SystemsEPAM -0.20%74 Debt-to-EBITDA is 0.45 as of Mar. 2026, which is 80% above its 10-year median of 0.25. GuruFocus rates EPAM with a GF Score™ of 74/100 and a GF Value™ of $258.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,716 Software companies, EPAM Systems ranks better than 69.06% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for EPAM Systems's Debt-to-EBITDA or its related term are showing as below:
EPAM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.09 Med: 0.25 Max: 0.65
Current: 0.41
During the past 13 years, the highest Debt-to-EBITDA Ratio of EPAM Systems was 0.65. The lowest was 0.09. And the median was 0.25.
EPAM's Debt-to-EBITDA is ranked better than 69.06% of 1716
companies
in the Software industry
Industry Median: 1.085
vs EPAM: 0.41
EPAM Systems (NYSE:EPAM) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
EPAM Systems Debt-to-EBITDA Related Terms
EPAM Systems Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for EPAM Systems's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, EPAM Systems's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EPAM Systems Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, EPAM Systems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where EPAM Systems's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
EPAM Systems (EPAM) has a Debt-to-EBITDA of 0.45 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on EPAM Systems. This is 80% above median its historical median of 0.25. Over the past decade, EPAM Systems' Debt-to-EBITDA has ranged from 0.09 to 0.65. According to the industry distribution chart, EPAM Systems ranks #531 out of 1716 companies in the Software industry, placing it in the top 30.9%.
Is EPAM Systems' Debt-to-EBITDA too high?
EPAM Systems' current Debt-to-EBITDA of 0.45 is 80% above median its 10-year median of 0.25. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 0.65. The Software industry median Debt-to-EBITDA is 1.09. EPAM Systems' value of 0.45 is 58.5% below this industry median. Based on the distribution chart, EPAM Systems ranks #531 out of 1716 companies in the Software industry, which is above the industry midpoint. Overall, EPAM Systems has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EPAM Systems' Debt-to-EBITDA compare to EXLS and SAIC?
According to the Software industry distribution chart, EPAM Systems ranks #531 out of 1716 companies for Debt-to-EBITDA. This puts EPAM Systems in the upper half of its industry. The industry median Debt-to-EBITDA is 1.09. EPAM Systems' value of 0.45 is 58.5% below this benchmark. Historically, EPAM Systems' own Debt-to-EBITDA has ranged from 0.09 to 0.65 over the past decade. While the company's 10-year median is 0.25 vs. the industry median of 1.09, EPAM Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current Debt-to-EBITDA of 0.45 is 58.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on EPAM Systems. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current Debt-to-EBITDA is 0.45, which is 80% above median its own 10-year median of 0.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EPAM Systems stock overvalued right now?
Based on GuruFocus' analysis, EPAM Systems (EPAM) is currently considered Significantly Undervalued. The stock's GF Value™ is $258.23, compared to a current price of $89.22 — trading 65.4% below its estimated fair value. The current Debt-to-EBITDA is 0.45, which is 80% above median its 10-year median of 0.25 and 58.5% below the Software industry median of 1.09. EPAM Systems' overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For EPAM Systems (EPAM), the current Debt-to-EBITDA is 0.45 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is EPAM Systems (EPAM) Overvalued in 2026?
Based on GuruFocus' analysis, EPAM Systems stock appears to be undervalued.
The current stock price of $89.22 is trading 65.4% below its estimated GF Value™ of $258.23.
GuruFocus considers EPAM Systems to be Significantly Undervalued.
Key valuation signals for EPAM:
Debt-to-EBITDA: 0.45 (80% above median its 10-year median of 0.25)
GF Value™: $258.23 vs. price of $89.22 (65.4% below fair value)
Industry Position: 58.5% below the Software median (#531 of 1716)
No single metric tells the full story. See the EPAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EPAM Systems is a global IT services firm with a focus on platform engineering, software development, and consulting services. The company used to host large engineer bases in Ukraine, Belarus, and Russia, but it now delivers from various locations across different continents. EPAM's largest market is North America, which represents approximately 60% of revenue.
74GF Score
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