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Here's How Much a $1000 Investment in Epam Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Epam (EPAM - Free Report) 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 in 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.

The company offers application testing services like 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 $4.69 billion in 2023. The company has six operating verticals — Financial Services (21.7% of FY23 revenues), Travel and Consumer (22.9%), Software & Hi-Tech (15.1%), Business Information & Media (16.1%), Life Sciences & Healthcare (10.4%) and Emerging Verticals (13.8%).

The company has a huge client base, which includes the majority of Forbes Global 2000 corporations operating across North America, Europe, Commonwealth of Independent States and APAC (Asia including India and Australia). In 2023, the company generated 58.4% of its revenues from the Americas, 38.9% from the EMEA, 0.5% from Central and East Europe and 2.2% from APAC.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Epam, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in August 2014 would be worth $5,060.05, or a 406% gain, as of August 6, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 170.09% and the price of gold went up 77.04% 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 a continued focus on customer engagement and product development. The company’s sustained focus on strategic acquisitions and partnerships is helping it enhance its product portfolio as well as drive top-line growth. Our estimates suggest that revenues are expected to witness a CAGR of 6.3% between 2024 and 2026. A sustained focus on realigning the cost structure with the current demand environment is likely to continue driving its non-GAAP operating margins. However, EPAM’s near-term prospects look gloomy due to the tepid demand environment as organizations are turning more cautious on IT spending amid macroeconomic headwinds. The ongoing Russia-Ukraine conflict, intensifying competition, unfavorable forex and high customer concentration are major concerns.

The stock is up 8.66% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.

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