EPAM Systems

Methodology

EPAM's software engineering and digital transformation services generate relatively stable earnings, though the Russia-Ukraine conflict created significant disruption to Eastern European operations. The company's pivot away from Russian operations and diversification efforts add near-term uncertainty. Fair value calculations require careful assumptions about normalized delivery capacity and sustainable growth rates post-restructuring.

Methodology

EPAM typically trades at PEG ratios between 1.0-2.0x, though geopolitical disruption and competitive pressures from Indian IT giants create valuation uncertainty. The company's engineering expertise and digital capabilities support premium positioning. PEG appears reasonable but reflects questions about return to historical growth rates given operational restructuring challenges.

Methodology

EPAM doesn't pay dividends and focuses on reinvesting in talent development and geographic diversification following geopolitical disruptions. Management prioritizes restoring operational stability and growth over capital returns. Total return depends entirely on successful execution of the business model transformation away from Eastern European delivery centers.