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EPAM SystemsSTU:E3M -0.61%74 Interest Coverage is 83.57 as of Jun. 2026, which is 73% below its 10-year median of 314.02. GuruFocus rates STU:E3M with a GF Score™ of 74/100 and a GF Value™ of €261.17 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,720 Software companies, EPAM Systems ranks worse than 58139.48% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. EPAM Systems's
Operating Income
for the
three
months ended in Jun. 2026 was €132 Mil. EPAM Systems's Interest Expense for the
three
months ended in Jun. 2026 was €-2 Mil.
EPAM Systems's interest coverage for the quarter that ended in Jun. 2026 was 83.57.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. EPAM Systems Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for EPAM Systems's Interest Coverage or its related term are showing as below:
STU:E3M'
s Interest Coverage Range Over the Past 10 Years
Min: 309.27 Med: 314.02 Max: 314.02
Current: 309.27
STU:E3M's Interest Coverage is not ranked
in the Software industry.
Industry Median: 24.69
vs STU:E3M: 309.27
EPAM Systems (STU:E3M) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
EPAM Systems Interest Coverage Related Terms
EPAM Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for EPAM Systems's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:E3M vs SAIC, EXLS, G: Interest Coverage Comparison
For the Information Technology Services subindustry, EPAM Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, EPAM Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where EPAM Systems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (STU:E3M) has a Interest Coverage of 83.57 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on EPAM Systems and its competitors. This is 73% below median its historical median of 314.02. Over the past decade, EPAM Systems' Interest Coverage has ranged from 309.27 to 314.02. According to the industry distribution chart, EPAM Systems ranks #999999 out of 1720 companies in the Software industry.
Is EPAM Systems' Interest Coverage too high?
EPAM Systems' current Interest Coverage of 83.57 is 73% below median its 10-year median of 314.02. Over the past 10 years, this metric has ranged from a low of 309.27 to a high of 314.02. The Software industry median Interest Coverage is 24.69. EPAM Systems' value of 83.57 is 238.5% above this industry median. Based on the distribution chart, EPAM Systems ranks #999999 out of 1720 companies in the Software industry, which is in the bottom quartile 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' Interest Coverage compare to SAIC and EXLS?
According to the Software industry distribution chart, EPAM Systems ranks #999999 out of 1720 companies for Interest Coverage. This places EPAM Systems in the lower half of its industry. The industry median Interest Coverage is 24.69. EPAM Systems' value of 83.57 is 238.5% above this benchmark. Historically, EPAM Systems' own Interest Coverage has ranged from 309.27 to 314.02 over the past decade. While the company's 10-year median is 314.02 vs. the industry median of 24.69, EPAM Systems has consistently been above 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.69, based on 1,720 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current Interest Coverage of 83.57 is 238.5% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on EPAM Systems and its competitors. For the Software industry, the median Interest Coverage is 24.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current Interest Coverage is 83.57, which is 73% below median its own 10-year median of 314.02. 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 (STU:E3M) is currently considered Significantly Undervalued. The stock's GF Value™ is €261.17, compared to a current price of €93.84 — trading 64.1% below its estimated fair value. The current Interest Coverage is 83.57, which is 73% below median its 10-year median of 314.02 and 238.5% above the Software industry median of 24.69. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For EPAM Systems (STU:E3M), the current Interest Coverage is 83.57 as of Jun. 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 (STU:E3M) Overvalued in 2026?
Based on GuruFocus' analysis, EPAM Systems stock appears to be undervalued.
The current stock price of €93.84 is trading 64.1% below its estimated GF Value™ of €261.17.
GuruFocus considers EPAM Systems to be Significantly Undervalued.
Key valuation signals for STU:E3M:
Interest Coverage: 83.57 (73% below median its 10-year median of 314.02)
GF Value™: €261.17 vs. price of €93.84 (64.1% below fair value)
Industry Position: 238.5% above the Software median (#999999 of 1720)
No single metric tells the full story. See the STU:E3M 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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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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