EPAM — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($139.16)
DCF	$384.01	+175.9%
Graham Number	$99.31	-28.6%
Reverse DCF	—	implied g: -6.3%
DDM	—	—
EV/EBITDA	$136.39	-2.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $725.31M

Near-term growth (yrs 1–5)(%)Rev: 12.8% / EPS: 9.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 13.77%

Computed WACC: 13.77%

Cost of equity (Re)14.02%(Rf 4.30% + β 1.77 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.18%

Debt weight (D/V)1.82%

Results

Intrinsic Value / share$218.38

Current Price$139.16

Upside / Downside+56.9%

Net Debt (used)-$1.15B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	4.8%	8.8%	12.8%	16.8%	20.8%
7.0%	$402.83	$476.12	$560.63	$657.60	$768.40
8.0%	$330.30	$388.75	$456.08	$533.26	$621.37
9.0%	$280.26	$328.51	$384.01	$447.58	$520.10
10.0%	$243.71	$284.52	$331.42	$385.08	$446.24
11.0%	$215.87	$251.04	$291.40	$337.56	$390.10

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $6.47

Book Value / share($)Yahoo: $67.75

Results

Graham Number$99.31

Current Price$139.16

Margin of Safety-28.6%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 13.77%

Terminal growth rate(%)

Computed WACC: 13.77%

Cost of equity (Re)14.02%(Rf 4.30% + β 1.77 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)98.18%

Debt weight (D/V)1.82%

Results

Current Price$139.16

Implied Near-term FCF Growth2.9%

Historical Revenue Growth12.8%

Historical Earnings Growth9.9%

Base FCF (TTM)$725.31M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$139.16

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $707.23M

Target EV/EBITDA multipleCurrent: 9.0×

Net Debt($B)Default: -$1.15B

Results

Implied Equity Value / share$136.39

Current Price$139.16

Upside / Downside-2.0%

Implied EV$6.38B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.15B	-$1.15B	-$1.15B	-$1.15B	-$1.15B
5.0x	$85.18	$85.18	$85.18	$85.18	$85.18
7.0x	$110.78	$110.78	$110.78	$110.78	$110.78
9.0x	$136.39	$136.39	$136.39	$136.39	$136.39
11.0x	$161.99	$161.99	$161.99	$161.99	$161.99
13.0x	$187.60	$187.60	$187.60	$187.60	$187.60

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