Stock fact sheet · data as of
EPAM Systems, Inc. (EPAM): fair value, margin of safety and Wheel Score
Technology · Information Technology Services · United States · Quality / Blue-Chip
Is EPAM undervalued?
EPAM Systems, Inc. (EPAM) closed at 122.26 on 16 Oct 2026, close to the GLS average fair value of 131.99 (7.4% below fair value). 4 of the 8 models that produced a number sit above the price, 4 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between GLS Growth (41.97) and 10 Cap (247.33). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files EPAM under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for EPAM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 152.73 | +25% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 107.88 | -12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 171.14 | +40% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 54.86 | -55% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 41.97 | -66% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 247.33 | +102% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 194.67 | +59% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 85.38 | -30% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 25.39 | -79% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 119.00 | -3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
EPAM Systems, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 7.5/10 puts EPAM among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are moderate - ROIC 9.9%, ROE 10.3%, ROA 7.7% - with debt at 0.04 times equity and a free-cash-flow yield of 7.7%.
EPAM Systems, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Financial Services Sector 26%, Consumer Goods, Retail & Travel 19%, Emerging Vertical Sector 17% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 9.9% |
|---|---|---|---|
| GLS Moat | 7.5 / 10 | ROE | 10.3% |
| Debt / equity | 0.04 | ROA | 7.7% |
| Free-cash-flow yield | 7.7% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 82: Prime
With a Wheel Score of 82, EPAM Systems, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 16/25, Health 18/20, Moat 11/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 60% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 15,120 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.5M shares a day on a market cap of $6.3B, with a beta of 1.39 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 16 / 25 | 7% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.5/10 | |
| Premium | 20 / 20 | implied volatility 60% | |
| Stability | 18 / 20 | 1.5M shares/day, $6.3B cap, beta 1.39 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to EPAM Systems, Inc. by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| G Genpact Limited | 37.59 | 68.55 | +45% | 93Prime | $6.4B |
| INGM Ingram Micro Holding Corporation | 26.98 | 21.77 | -24% | 57Fair | $6.2B |
| APLD Applied Digital Corp. | 20.39 | - | - | 45Weak | $6.2B |
| EXLS ExlService Holdings, Inc. | 39.10 | 43.79 | +11% | 87Prime | $5.9B |
| SAIC Science Applications International Corporation | 131.57 | 171.60 | +23% | 81Prime | $5.5B |
| MAAS Maase Inc. | 12.61 | 18.74 | +33% | 39No options | $5.5B |
| GDS GDS Holdings Limited | 25.32 | 33.66 | +25% | 73Good | $4.9B |
| NSIT Insight Enterprises, Inc. | 158.90 | 146.13 | -9% | 63Fair | $4.7B |
| PSN Parsons Corporation | 42.79 | 64.83 | +34% | 81Prime | $4.6B |
| CIFR Cipher Mining Inc. | 10.04 | - | - | 36Weak | $4.2B |
| JKHY Jack Henry & Associates, Inc. | 156.47 | 140.31 | -12% | 71Good | $11.0B |
| WSE Wise plc | 12.01 | 35.92 | +67% | 92Prime | $12.0B |
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Start free See the Sunday ScanQuestions about EPAM
Is EPAM undervalued right now?
Not meaningfully: at 122.26 the stock trades within a few percent of the GLS average fair value of 131.99 (7.4% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of EPAM and what does it mean?
EPAM scores 82 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for EPAM?
131.99 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does EPAM Systems, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does EPAM have listed options, and how liquid are they?
Yes. The nightly snapshot found 324 listed contracts with 15,120 open interest across all expiries and implied volatility of 60% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.