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EPAM SystemsEPAM +6.46%74 Return-on-Tangible-Asset is 10.32% as of Mar. 2026, which is 26% below its 10-year median of 13.86. GuruFocus rates EPAM with a GF Score™ of 74/100 and a GF Value™ of $258.68 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,893 Software companies, EPAM Systems ranks better than 81.54% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. EPAM Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was $330 Mil. EPAM Systems's average total tangible assets for the quarter that ended in Mar. 2026 was $3,199 Mil. Therefore, EPAM Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 10.32%.
The historical rank and industry rank for EPAM Systems's Return-on-Tangible-Asset or its related term are showing as below:
EPAM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.86 Med: 13.86 Max: 19.42
Current: 12.25
During the past 13 years, EPAM Systems's highest Return-on-Tangible-Asset was 19.42%. The lowest was 7.86%. And the median was 13.86%.
EPAM's Return-on-Tangible-Asset is ranked better than 81.54% of 2893
companies
in the Software industry
Industry Median: 2.07
vs EPAM: 12.25
EPAM Systems (NYSE:EPAM) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
EPAM Systems Return-on-Tangible-Asset Related Terms
EPAM Systems Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for EPAM Systems's Return-on-Tangible-Asset 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.
EPAM vs SAIC, EXLS, G: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, EPAM Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, EPAM Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where EPAM Systems's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.32% mean?
EPAM Systems (EPAM) has a Return-on-Tangible-Asset of 10.32% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on EPAM Systems and its competitors. This is 26% below median its historical median of 13.86. Over the past decade, EPAM Systems' Return-on-Tangible-Asset has ranged from 7.86 to 19.42. According to the industry distribution chart, EPAM Systems ranks #534 out of 2893 companies in the Software industry, placing it in the top 18.5%.
Is EPAM Systems' Return-on-Tangible-Asset too high?
EPAM Systems' current Return-on-Tangible-Asset of 10.32% is 26% below median its 10-year median of 13.86. Over the past 10 years, this metric has ranged from a low of 7.86 to a high of 19.42. The Software industry median Return-on-Tangible-Asset is 2.07. EPAM Systems' value of 10.32% is 398.6% above this industry median. Based on the distribution chart, EPAM Systems ranks #534 out of 2893 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' Return-on-Tangible-Asset compare to SAIC and EXLS?
According to the Software industry distribution chart, EPAM Systems ranks #534 out of 2893 companies for Return-on-Tangible-Asset. This places EPAM Systems in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.07. EPAM Systems' value of 10.32% is 398.6% above this benchmark. Historically, EPAM Systems' own Return-on-Tangible-Asset has ranged from 7.86 to 19.42 over the past decade. While the company's 10-year median is 13.86 vs. the industry median of 2.07, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.07, based on 2,893 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current Return-on-Tangible-Asset of 10.32% is 398.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on EPAM Systems and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current Return-on-Tangible-Asset is 10.32%, which is 26% below median its own 10-year median of 13.86. 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 $258.68, compared to a current price of $106.89 — trading 58.7% below its estimated fair value. The current Return-on-Tangible-Asset is 10.32%, which is 26% below median its 10-year median of 13.86 and 398.6% above the Software industry median of 2.07. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For EPAM Systems (EPAM), the current Return-on-Tangible-Asset is 10.32% 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 $106.89 is trading 58.7% below its estimated GF Value™ of $258.68.
GuruFocus considers EPAM Systems to be Significantly Undervalued.
Key valuation signals for EPAM:
Return-on-Tangible-Asset: 10.32% (26% below median its 10-year median of 13.86)
GF Value™: $258.68 vs. price of $106.89 (58.7% below fair value)
Industry Position: 398.6% above the Software median (#534 of 2893)
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
Get the complete analysis for EPAM
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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