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EPAM SystemsEPAM -0.20%74 Pretax Margin % is 8.62% as of Mar. 2026, which is 29% below its 10-year median of 12.19. 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 2,830 Software companies, EPAM Systems ranks better than 67.95% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. EPAM Systems's Pre-Tax Income for the
three
months ended in Mar. 2026 was $121 Mil. EPAM Systems's Revenue for the
three
months ended in Mar. 2026 was $1,400 Mil. Therefore, EPAM Systems's pretax margin for the quarter that ended in Mar. 2026 was 8.62%.
The historical rank and industry rank for EPAM Systems's Pretax Margin % or its related term are showing as below:
EPAM'
s Pretax Margin % Range Over the Past 10 Years
Min: 9.27 Med: 12.19 Max: 14.23
Current: 9.57
EPAM's Pretax Margin % is ranked better than 67.95% of 2830
companies
in the Software industry
Industry Median: 3.59
vs EPAM: 9.57
EPAM Systems (NYSE:EPAM) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
EPAM Systems Pretax Margin % Related Terms
EPAM Systems Pretax Margin % Historical Data
* Premium members only.
The historical data trend for EPAM Systems's Pretax Margin % 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 Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, EPAM Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where EPAM Systems's Pretax Margin % 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.
EPAM Systems (EPAM) has a Pretax Margin % of 8.62% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on EPAM Systems and its competitors. This is 29% below median its historical median of 12.19. Over the past decade, EPAM Systems' Pretax Margin % has ranged from 9.27 to 14.23. According to the industry distribution chart, EPAM Systems ranks #907 out of 2830 companies in the Software industry, placing it in the top 32%.
Is EPAM Systems' Pretax Margin % too high?
EPAM Systems' current Pretax Margin % of 8.62% is 29% below median its 10-year median of 12.19. Over the past 10 years, this metric has ranged from a low of 9.27 to a high of 14.23. The Software industry median Pretax Margin % is 3.59. EPAM Systems' value of 8.62% is 140.1% above this industry median. Based on the distribution chart, EPAM Systems ranks #907 out of 2830 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' Pretax Margin % compare to EXLS and SAIC?
According to the Software industry distribution chart, EPAM Systems ranks #907 out of 2830 companies for Pretax Margin %. This puts EPAM Systems in the upper half of its industry. The industry median Pretax Margin % is 3.59. EPAM Systems' value of 8.62% is 140.1% above this benchmark. Historically, EPAM Systems' own Pretax Margin % has ranged from 9.27 to 14.23 over the past decade. While the company's 10-year median is 12.19 vs. the industry median of 3.59, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.59, based on 2,830 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current Pretax Margin % of 8.62% is 140.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on EPAM Systems and its competitors. For the Software industry, the median Pretax Margin % is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current Pretax Margin % is 8.62%, which is 29% below median its own 10-year median of 12.19. 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 Pretax Margin % is 8.62%, which is 29% below median its 10-year median of 12.19 and 140.1% above the Software industry median of 3.59. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For EPAM Systems (EPAM), the current Pretax Margin % is 8.62% 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:
Pretax Margin %: 8.62% (29% below median its 10-year median of 12.19)
GF Value™: $258.23 vs. price of $89.22 (65.4% below fair value)
Industry Position: 140.1% above the Software median (#907 of 2830)
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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