If You Invested $1000 in Epam a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Epam (EPAM) ten years ago? It may not have been easy to hold on to EPAM for all that time, but if you did, how much would your investment be worth today?
Epam's Business In-Depth
With that in mind, let's take a look at Epam's main business drivers.
Headquartered at Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.
The company is engaged in providing software product development services, custom application development services, application testing services, application maintenance and support services, infrastructure management services and enterprise information management services.
Its software product development services include product research, design and prototyping, product development, component design and integration. EPAM’s custom application development services comprise business and technical requirements analysis, solution architecture creation and validation, development, component design and integration.
Under the application testing services, the company offers software application testing, testing for enterprise IT, and consulting services. Further, it provides services like incident management, fault investigation diagnosis, work-around provision, application bug fixes, release management, application enhancements, and third-party maintenance under the application maintenance and support services.
EPAM’s infrastructure management services include applications, database, network, server, storage, and systems operations management, as well as incident notification and resolutions. Through its enterprise information management services, the company helps organizations in improving business processes, thereby achieving greater operational excellence.
EPAM generated total revenues of $4.82 billion in 2022. The company has six operating verticals — Financial Services (21.3% of FY22 revenues), Travel and Consumer (22.6%), Software & Hi-Tech (16.4%), Business Information & Media (16.8%), Life Sciences & Healthcare (10.5%) and Emerging Verticals (12.3%).
The company has a huge client base, which includes majority of Forbes Global 2000 corporations operating across North America, Europe, CIS (Commonwealth of Independent States) and APAC (Asia including India and Australia). In 2022, the company generated 59.8% of its revenues from Americas, 36% from EMEA, 1.6% from CEE and 2.5% from APAC.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Epam a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $8,298.12, or a 729.81% gain, as of December 21, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 158.39% and the price of gold went up 63.82% over the same time frame.
Looking ahead, analysts are expecting more upside for EPAM.
EPAM is gaining from the ongoing digital transformation by enterprises and continued focus on customer engagement and product development. It is benefiting from growth across key geographic regions and multiple industry verticals. The company’s sustained focus on strategic acquisitions and partnerships is helping it enhance its product portfolio as well as drive top-line growth. However, EPAM’s near-term prospect looks gloomy due to the tepid demand environment as organizations are turning more cautious on IT spending amid macroeconomic headwinds. The ongoing Russia-Ukraine conflict is likely to continue disrupting its overall business operations in the near term as a significant number of its delivery centers are located in Central and Eastern Europe. Our estimates suggest that its revenues are expected to decline 3.2% in 2023.
Over the past four weeks, shares have rallied 13.96%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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EPAM Systems, Inc. (EPAM) : Free Stock Analysis Report
