EPAM SystemsEPAM +3.55%74 EV-to-FCF is 7.11 as of Jul. 03, 2026, which is 79% below its 10-year median of 34.61. GuruFocus rates EPAM with a GF Score™ of 74/100 and a GF Value™ of $257.40 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,589 Software companies, EPAM Systems ranks better than 77.34% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, EPAM Systems's Enterprise Value is $3,863 Mil.
EPAM Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $544 Mil. Therefore, EPAM Systems's EV-to-FCF for today is 7.11.
The historical rank and industry rank for EPAM Systems's EV-to-FCF or its related term are showing as below:
EPAM'
s EV-to-FCF Range Over the Past 10 Years
Min: 6.26 Med: 34.61 Max: 108.89
Current: 7.11
During the past 13 years, the highest EV-to-FCF of EPAM Systems was 108.89. The lowest was 6.26. And the median was 34.61.
EPAM's EV-to-FCF is ranked better than 77.34% of 1589
companies
in the Software industry
Industry Median: 14.3
vs EPAM: 7.11
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EPAM Systems's PE Ratio (TTM) for today is calculated as:
EPAM Systems's share price for today is $88.27.
EPAM Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.970.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
EPAM Systems EV-to-FCF Related Terms
EPAM Systems EV-to-FCF Historical Data
* Premium members only.
The historical data trend for EPAM Systems's EV-to-FCF 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 EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Software Industry
For the Software industry and Technology sector, EPAM Systems's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where EPAM Systems's EV-to-FCF falls into.
EPAM Systems's current Enterprise Value is $3,863 Mil.
EPAM Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $544 Mil.
* 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.
EPAM Systems (EPAM) has a EV-to-FCF of 7.11 as of Jul. 03, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on EPAM Systems and its competitors. This is 79% below median its historical median of 34.61. Over the past decade, EPAM Systems' EV-to-FCF has ranged from 6.26 to 108.89. According to the industry distribution chart, EPAM Systems ranks #360 out of 1589 companies in the Software industry, placing it in the top 22.7%.
Is EPAM Systems' EV-to-FCF too high?
EPAM Systems' current EV-to-FCF of 7.11 is 79% below median its 10-year median of 34.61. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 108.89. The Software industry median EV-to-FCF is 14.30. EPAM Systems' value of 7.11 is 50.3% below this industry median. Based on the distribution chart, EPAM Systems ranks #360 out of 1589 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' EV-to-FCF compare to EXLS and SAIC?
According to the Software industry distribution chart, EPAM Systems ranks #360 out of 1589 companies for EV-to-FCF. This places EPAM Systems in the top 23% of its industry — outperforming the majority of peers. The industry median EV-to-FCF is 14.30. EPAM Systems' value of 7.11 is 50.3% below this benchmark. Historically, EPAM Systems' own EV-to-FCF has ranged from 6.26 to 108.89 over the past decade. While the company's 10-year median is 34.61 vs. the industry median of 14.30, 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 EV-to-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current EV-to-FCF of 7.11 is 50.3% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on EPAM Systems and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current EV-to-FCF is 7.11, which is 79% below median its own 10-year median of 34.61. 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 $257.40, compared to a current price of $88.27 — trading 65.7% below its estimated fair value. The current EV-to-FCF is 7.11, which is 79% below median its 10-year median of 34.61 and 50.3% below the Software industry median of 14.30. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For EPAM Systems (EPAM), the current EV-to-FCF is 7.11 as of Jul. 03, 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 $88.27 is trading 65.7% below its estimated GF Value™ of $257.40.
GuruFocus considers EPAM Systems to be Significantly Undervalued.
Key valuation signals for EPAM:
EV-to-FCF: 7.11 (79% below median its 10-year median of 34.61)
GF Value™: $257.40 vs. price of $88.27 (65.7% below fair value)
Industry Position: 50.3% below the Software median (#360 of 1589)
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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