Is Wipro overvalued or undervalued?

As of 1 September 2025, Wipro's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued, with a price-to-earnings (PE) ratio of 19.48, a price-to-book value of 3.18, and an EV to EBITDA ratio of 12.74. These ratios suggest that Wipro is positioned favorably compared to its peers, particularly when considering TCS, which has a PE ratio of 22.86, and Infosys, also at 22.86. In the context of the broader market, Wipro's PEG ratio of 0.97 further supports its undervaluation, especially when compared to the higher ratios of its peers. Despite a recent decline in stock performance relative to the Sensex, particularly year-to-date, Wipro's strong return on capital employed (ROCE) of 31.24% and return on equity (ROE) of 15.95% highlight its operational efficiency and profitability. Overall, Wipro's current valuation metrics suggest it is an attractive investment opportunity in the software and consulting sector.