Is Wipro overvalued or undervalued?

As of 21 July 2025, Wipro's valuation grade has moved from fair to attractive, indicating a positive shift in its market positioning. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 20.28, an EV to EBITDA ratio of 13.34, and a PEG ratio of 1.00, which suggest that Wipro is trading at a reasonable price relative to its earnings growth potential.
In comparison to its peers, Wipro's PE ratio is lower than that of TCS, which stands at 23.19, and Infosys at 24.64, both of which are categorized as attractive and fair, respectively. Additionally, Wipro's ROCE of 31.24% and ROE of 15.95% further strengthen its valuation case. While Wipro has underperformed the Sensex year-to-date with a return of -13.77% compared to the Sensex's 5.20%, its attractive valuation suggests potential for recovery and growth in the near future.