Is Wipro overvalued or undervalued?

As of 5 September 2025, Wipro's valuation grade has moved from very attractive to attractive, indicating a shift in its market perception. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 19.03, an EV to EBITDA of 12.40, and a PEG ratio of 0.94, which suggest that while Wipro is competitively priced, it may not present the same level of value as before.
In comparison to its peers, TCS has a higher PE ratio of 22.38 and an EV to EBITDA of 15.77, while Infosys is at a PE of 22.02 and an EV to EBITDA of 14.44, underscoring that Wipro's valuation is more attractive relative to these competitors. Additionally, Wipro's dividend yield stands at 4.50%, which is appealing in the current market. Despite recent underperformance, with a year-to-date return of -19.27% compared to the Sensex's 3.29%, the company's solid ROCE of 31.24% and ROE of 15.95% suggest it maintains strong operational efficiency.