Using the PEG framework with analyst consensus forward EPS growth of 25.0%, EPAM Systems, Inc. has a fair value of $319.22 based on NTM EPS (FY2026) of $12.77. The current PEG ratio is 0.34.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 31.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $12.77 |
| Fair Value | $319.22 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.72 | — | — |
| FY2026E | $12.77 | +90.0% | 14 |
| FY2027E | $14.01 | +9.7% | 15 |
| FY2028E | $15.41 | +10.0% | 12 |
3Y Forward EPS CAGR: 31.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $481.7M | $8.15 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $419.4M | $7.09 | -13.0% |
| FY2023 | $417.1M | $7.06 | -0.4% |
| FY2024 | $454.5M | $7.84 | +11.0% |
| FY2025 | $377.7M | $6.72 | -14.3% |
4Y Historical EPS CAGR: -4.7%