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DCF Valuation
Base-case fair value
$152.34
Intrinsic $203.13 · 25% MOS
Current price: $98.04
Base-case summary
Our base-case DCF for EPAM Systems, Inc. (EPAM) projects 10 years of free cash flow growth at 3.4% for years 1–5 and 1.7% for years 6–10, anchored to 3.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $544M in trailing free cash flow, this produces an intrinsic value of $203.13 per share. A 25% safety margin gives a fair value of $152.34, suggesting the stock is currently 55% undervalued against the $98.04 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$544M
Cash & equivalents
$1.0B
Total debt
$288M
Shares outstanding
54M