DCF Tool


EPAM Systems Inc – Custom Computer Programming Services
established in 1993, epam systems, inc. (nyse: epam) is recognized as a leader in software product development by independent research agencies. headquartered in the united states, epam serves clients worldwide utilizing its award-winning global delivery platform and its locations in 20 countries across north america, europe, asia and australia. epam was ranked #6 in 2013 america's 25 fastest-growing tech companies and #3 in 2014 america’s best small companies lists by forbes magazine. for more information, please visit www.epam.com.
Analysis Results
Intrinsic Value $598.99
Latest Price $256.80
Relative Value 57% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
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 45.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 45.8%, 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)
2023 1.06 0.947
2024 1.54 1.24
2025 2.25 1.61
2026 3.27 2.11
2027 4.77 2.75
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 50.5 billion. This corresponds to a present value of 26.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.65 billion. Adding in the terminal value gives a total present value of 34.7 billion.

There are presently 58.0 million outstanding shares, so the intrinsic value per share is 598.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,759,625,000
Current Cash 1,741,680,000
Current Liabilities 747,483,000
Current Debt 2,861,000
Non-Cash Working Capital (NCWC) 273,323,000
Change in NCWC 197,870,000
EBIT 572,966,000
Tax Provision 87,842,000
Depreciation and Amortization 140,049,000
Capital Expenditure -81,629,000
Unlevered Free Cash Flow 730,035,328
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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