DCF Tool

EPAM

EPAM Systems Inc – Custom Computer Programming Services
Since 1993, EPAM Systems, Inc. has leveraged its software engineering expertise to become a leading global product development, digital platform engineering, and top digital and product design agency. Through its 'Engineering DNA' and innovative strategy, consulting, and design capabilities, EPAM works in collaboration with its customers to deliver next-gen solutions that turn complex business challenges into real business outcomes. EPAM's global teams serve customers in more than 35 countries across North America, Europe, Asia and Australia. As a recognized market leader in multiple categories among top global independent research agencies, EPAM was one of only four technology companies to appear on Forbes 25 Fastest Growing Public Tech Companies list every year of publication since 2013 and ranked as the top IT services company on Fortune's 100 Fastest-Growing Companies list of 2019 and 2020.
Analysis Results
Intrinsic Value $306.27
Latest Price $440.92
Relative Value 44% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 43.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 43.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.708 0.623
2023 1.02 0.789
2024 1.47 0.998
2025 2.11 1.26
2026 3.03 1.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 26.5 billion. This corresponds to a present value of 12.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.27 billion. Adding in the terminal value gives a total present value of 17.6 billion.

There are presently 57.4 million outstanding shares, so the intrinsic value per share is 306.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,269,480,000
Current Cash 1,446,625,000
Current Liabilities 763,420,000
Current Debt 16,018,000
Non-Cash Working Capital (NCWC) 75,453,000
Change in NCWC 10,771,000
EBIT 542,316,000
Tax Provision 51,740,000
Depreciation and Amortization 145,151,000
Capital Expenditure -111,501,000
Unlevered Free Cash Flow 534,131,355
Current Assets 1,912,782,000
Current Cash 1,382,150,000
Current Liabilities 465,950,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,682,000
Change in NCWC -86,029,000
EBIT 379,324,000
Tax Provision 51,319,000
Depreciation and Amortization 62,874,000
Capital Expenditure -68,793,000
Unlevered Free Cash Flow 235,942,424
Current Assets 1,474,211,000
Current Cash 936,552,000
Current Liabilities 386,948,000
Current Debt 0
Non-Cash Working Capital (NCWC) 150,711,000
Change in NCWC -14,968,000
EBIT 302,850,000
Tax Provision 38,469,000
Depreciation and Amortization 45,317,000
Capital Expenditure -99,308,000
Unlevered Free Cash Flow 194,995,088
Current Assets 1,199,068,000
Current Cash 770,560,000
Current Liabilities 262,829,000
Current Debt 0
Non-Cash Working Capital (NCWC) 165,679,000
Change in NCWC -30,802,000
EBIT 245,764,000
Tax Provision 9,517,000
Depreciation and Amortization 36,640,000
Capital Expenditure -37,574,000
Unlevered Free Cash Flow 204,663,753
Current Assets 960,033,000
Current Cash 582,585,000
Current Liabilities 180,967,000
Current Debt 0
Non-Cash Working Capital (NCWC) 196,481,000
Change in NCWC 28,577,000
EBIT 172,946,000
Tax Provision 101,545,000
Depreciation and Amortization 28,562,000
Capital Expenditure -29,806,000
Unlevered Free Cash Flow 99,525,713
Current Assets 646,551,000
Current Cash 362,428,000
Current Liabilities 116,219,000
Current Debt 0
Non-Cash Working Capital (NCWC) 167,904,000
Change in NCWC -3,490,000
EBIT 133,696,000
Tax Provision 27,200,000
Depreciation and Amortization 23,387,000
Capital Expenditure -29,317,000
Unlevered Free Cash Flow 95,520,989
Current Assets 528,935,000
Current Cash 229,630,000
Current Liabilities 127,911,000
Current Debt 0
Non-Cash Working Capital (NCWC) 171,394,000
Change in NCWC 102,254,000
EBIT 105,967,000
Tax Provision 21,614,000
Depreciation and Amortization 17,395,000
Capital Expenditure -13,272,000
Unlevered Free Cash Flow 190,750,988
Current Assets 415,087,000
Current Cash 220,534,000
Current Liabilities 125,413,000
Current Debt 0
Non-Cash Working Capital (NCWC) 69,140,000
Change in NCWC -36,769,000
EBIT 88,424,000
Tax Provision 17,312,000
Depreciation and Amortization 17,483,000
Capital Expenditure -11,916,000
Unlevered Free Cash Flow 39,617,129
Current Assets 330,968,000
Current Cash 170,395,000
Current Liabilities 54,664,000
Current Debt 0
Non-Cash Working Capital (NCWC) 105,909,000
Change in NCWC 33,424,000
EBIT 76,493,000
Tax Provision 14,776,000
Depreciation and Amortization 15,120,000
Capital Expenditure -15,920,000
Unlevered Free Cash Flow 94,394,314

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