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If You Invested $1000 in Epam a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 - 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

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.

A $1000 investment made in November 2014 would be worth $5,108.15, or a 410.81% gain, as of November 12, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 194.23% and the price of gold went up 116.12% 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 enhances its product portfolio and drives top-line growth. Its substantial investment in generative artificial intelligence (Gen AI) capabilities is expected to drive growth as AI becomes increasingly integral to enterprise operations. A sustained focus on realigning the cost structure with the current demand environment is likely to drive 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. Shares of the company have underperformed the industry year to date.

Shares have gained 22.85% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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