Is Wipro overvalued or undervalued?

As of 28 August 2025, Wipro's valuation grade has moved from very attractive to attractive. The company is currently considered fairly valued. Key ratios include a PE ratio of 19.51, an EV to EBIT of 15.25, and a PEG ratio of 0.97. In comparison with peers, TCS has a higher PE ratio of 22.74 and Infosys stands at a PE of 22.86, indicating that Wipro is trading at a discount relative to these competitors.
Despite the recent downgrade in valuation grade, Wipro has shown resilience with a dividend yield of 4.39% and a strong ROCE of 31.24%. Over the past year, Wipro's stock has underperformed the Sensex, returning -6.29% compared to the Sensex's -2.08%. This underperformance, combined with its current valuation metrics, suggests that Wipro may present a buying opportunity for investors looking for value in the software and consulting sector.