EPAMNEUTRAL

EV/EBITDA

5.3x

Updated 316h ago

Sector Performance

11th percentile

EPAM

5.3x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 5.3x means the company’s enterprise value (market cap plus debt minus cash) is 5.3 times its earnings before interest, taxes, depreciation, and amortization – a common valuation metric used to compare companies regardless of capital structure.

At 5.3x, EPAM trades at an 8th percentile rank among sector peers, well below the sector median of 13.9x, indicating it is much cheaper than the typical peer. The metric’s year-over-year change is not available, but quarter-over-quarter it increased by +18.7%, moving from 4.5x to 5.3x in the most recent period. The combination of a very low absolute multiple and a sharp upward trend presents a mixed picture: the low level could signal undervaluation, but the rapid increase may reflect rising expectations or a narrowing discount. This metric supports the overall NEUTRAL verdict because the cheap valuation is a positive, while the recent rise tempers the opportunity and introduces uncertainty about sustainability.

Frequently Asked Questions

What does the EV/EBITDA tell investors about EPAM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are EPAM's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.