Is Wipro overvalued or undervalued?

As of 22 August 2025, Wipro's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered fairly valued. Key ratios include a PE ratio of 19.36, an EV to EBITDA of 12.65, and a PEG ratio of 0.96, which suggest that while Wipro is competitively priced, it may not present the same level of attractiveness as before.
In comparison to peers, Wipro's PE ratio is lower than TCS at 22.42 and Infosys at 22.67, indicating that Wipro may be undervalued relative to these competitors. Additionally, HCL Technologies, another peer, has a PE of 23.44, further supporting the notion that Wipro's valuation is on the lower end within its industry. Despite a recent decline in stock performance relative to the Sensex, with a year-to-date return of -17.68% compared to the Sensex's 4.05%, Wipro's solid ROCE of 31.24% and a dividend yield of 4.42% provide a buffer against its recent stock price fluctuations.