EPAM Systems (EPAM): Valuation Check After Winning AWS 2025 Global Innovation Partner of the Year Award
EPAM Systems (EPAM) just picked up the 2025 AWS Global Innovation Partner of the Year Award, a signal that Amazon sees it as a go to player for advanced cloud and AI migration work.
See our latest analysis for EPAM Systems.
The award comes as EPAM’s share price has rebounded in the short term, with a 30 day share price return of 18.01 percent. However, longer term total shareholder returns remain deeply negative, suggesting momentum is rebuilding after a tough few years.
If this kind of cloud and AI story interests you, it might be worth scanning other names in the space using our high growth tech and AI stocks as a starting point.
Yet with shares still down sharply over one and three years, trading just below analyst targets and at a modest intrinsic discount, investors face a key question: is this cloud leader now a buy, or is future growth already priced in?
Most Popular Narrative Narrative: 7.2% Undervalued
Compared to EPAM Systems' last close at $192.99, the most widely followed narrative sets a higher fair value, implying further upside if its thesis holds.
The accelerating enterprise adoption of AI is driving a surge in demand for advanced data engineering, cloud migration, and platform modernization projects, areas where EPAM holds deep technical expertise. This is leading to increased revenue from larger and more complex client engagements.
EPAM's strategic investments in AI native services, proprietary platforms (such as DIAL and AI/RUN), and upskilling of over 80% of its workforce have positioned it as a transformation partner for clients moving beyond pilot AI programs to large scale deployments. This supports sustainable revenue growth and the potential for improved net margins as EPAM moves up the value chain.
Curious how this AI driven shift translates into higher earnings, thicker margins, and a richer earnings multiple over time? Uncover the bold assumptions behind that fair value call.
Result: Fair Value of $207.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, rising generative AI automation and intensifying competition from hyperscalers could curb demand for EPAM’s bespoke services, which may pressure both growth and margins.
Find out about the key risks to this EPAM Systems narrative.
Build Your Own EPAM Systems Narrative
If you are not convinced by this view or prefer to dig into the numbers yourself, you can build a personalized take in minutes: Do it your way.
A great starting point for your EPAM Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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