Is Wipro overvalued or undervalued?

As of 18 July 2025, Wipro's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 20.78, an EV to EBITDA of 13.72, and a PEG ratio of 1.03. In comparison to its peers, TCS has a higher PE ratio of 23.42 and EV to EBITDA of 16.52, while Infosys also shows a higher PE at 24.67, suggesting that Wipro is positioned competitively within the industry.
Despite its fair valuation, Wipro's recent stock performance has lagged behind the Sensex, with a year-to-date return of -11.62% compared to the Sensex's 4.63%. This underperformance, combined with a solid ROCE of 31.24% and ROE of 15.95%, suggests that while the company is fairly valued, it may have potential for improvement in investor sentiment moving forward.