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EPAM SystemsEPAM -0.20%74 PEG Ratio is 1.55 as of Jul. 21, 2026, which is 15% below its 10-year median of 1.82. 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 818 Software companies, EPAM Systems ranks worse than 56.6% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for EPAM Systems's PEG Ratio or its related term are showing as below:
EPAM'
s PEG Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.82 Max: 11.22
Current: 1.55
During the past 13 years, EPAM Systems's highest PEG Ratio was 11.22. The lowest was 0.67. And the median was 1.82.
EPAM's PEG Ratio is ranked worse than 56.6% of 818
companies
in the Software industry
Industry Median: 1.32
vs EPAM: 1.55
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
EPAM Systems (NYSE:EPAM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
EPAM Systems PEG Ratio Related Terms
EPAM Systems PEG Ratio Historical Data
* Premium members only.
The historical data trend for EPAM Systems's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, EPAM Systems's PEG Ratio distribution charts can be found below:
* The bar in red indicates where EPAM Systems's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
EPAM Systems (EPAM) has a PEG Ratio of 1.55 as of Jul. 21, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on EPAM Systems and its competitors. This is 15% below median its historical median of 1.82. Over the past decade, EPAM Systems' PEG Ratio has ranged from 0.67 to 11.22. According to the industry distribution chart, EPAM Systems ranks #463 out of 818 companies in the Software industry, placing it in the top 56.6%.
Is EPAM Systems' PEG Ratio too high?
EPAM Systems' current PEG Ratio of 1.55 is 15% below median its 10-year median of 1.82. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 11.22. The Software industry median PEG Ratio is 1.32. EPAM Systems' value of 1.55 is 17.4% above this industry median. Based on the distribution chart, EPAM Systems ranks #463 out of 818 companies in the Software industry, which is below 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' PEG Ratio compare to EXLS and SAIC?
According to the Software industry distribution chart, EPAM Systems ranks #463 out of 818 companies for PEG Ratio. This places EPAM Systems in the lower half of its industry. The industry median PEG Ratio is 1.32. EPAM Systems' value of 1.55 is 17.4% above this benchmark. Historically, EPAM Systems' own PEG Ratio has ranged from 0.67 to 11.22 over the past decade. While the company's 10-year median is 1.82 vs. the industry median of 1.32, 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.32, based on 818 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current PEG Ratio of 1.55 is 17.4% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on EPAM Systems and its competitors. For the Software industry, the median PEG Ratio is 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current PEG Ratio is 1.55, which is 15% below median its own 10-year median of 1.82. 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 PEG Ratio is 1.55, which is 15% below median its 10-year median of 1.82 and 17.4% above the Software industry median of 1.32. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For EPAM Systems (EPAM), the current PEG Ratio is 1.55 as of Jul. 21, 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:
PEG Ratio: 1.55 (15% below median its 10-year median of 1.82)
GF Value™: $258.23 vs. price of $89.22 (65.4% below fair value)
Industry Position: 17.4% above the Software median (#463 of 818)
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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