Today we're going to take a look at the well-established EPAM Systems, Inc. (NYSE:EPAM). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$269 at one point, and dropping to the lows of US$227. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether EPAM Systems' current trading price of US$235 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at EPAM Systems's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for EPAM Systems
What Is EPAM Systems Worth?
Good news, investors! EPAM Systems is still a bargain right now. According to my valuation, the intrinsic value for the stock is $310.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because EPAM Systems's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from EPAM Systems?
NYSE:EPAM Earnings and Revenue Growth October 19th 2023
Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 5.4% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for EPAM Systems, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since EPAM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on EPAM for a while, now might be the time to enter the stock. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy EPAM. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
It can be quite valuable to consider what analysts expect for EPAM Systems from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.
If you are no longer interested in EPAM Systems, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
