Is Wipro overvalued or undervalued?

As of 20 August 2025, Wipro's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 19.54, an EV to EBIT of 15.27, and a PEG ratio of 0.97, which suggests that the stock is trading at a reasonable price relative to its growth potential.
In comparison to its peers, Wipro's PE ratio is lower than TCS's 22.74 and Infosys's 22.79, while its EV to EBITDA of 12.79 is also more favorable than TCS's 16.03. Additionally, Wipro boasts a robust ROCE of 31.24% and a dividend yield of 4.38%, further enhancing its attractiveness as an investment. Despite recent underperformance relative to the Sensex over the past year, the long-term outlook remains promising, with a 5-year return of 82.97%.