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 based on its key financial ratios, which include 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 is rated attractive with a PE ratio of 23.42, while Infosys, also rated fair, has a higher PE ratio of 24.67, suggesting that Wipro's valuation is on par with industry standards but lacks the premium seen in some competitors.
Despite the recent downgrade in valuation, Wipro has shown resilience in the short term, outperforming the Sensex over the past week with a return of 3.43% compared to the Sensex's decline of 0.90%. However, the year-to-date performance reflects a decline of 11.62%, indicating potential challenges ahead. Overall, Wipro appears to be fairly valued in the current market landscape.