Is Wipro overvalued or undervalued?

As of 8 April 2025, Wipro's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued, supported by key ratios such as a PE ratio of 19.84, an EV to EBIT of 15.03, and a ROCE of 31.24%. In comparison to its peers, TCS has a significantly higher PE ratio of 25.23, while Infosys stands at 24.32, highlighting Wipro's relative attractiveness in the market. Despite recent underperformance compared to the Sensex, with a year-to-date return of -17.27% against the Sensex's 5.59%, Wipro's strong fundamentals, including a PEG ratio of 1.07 and a dividend yield of 2.41%, suggest that it presents a compelling investment opportunity. The company's valuation metrics indicate that it is positioned favorably within the industry, particularly when compared to peers like HCL Technologies, which has a higher EV to EBITDA of 16.52.