Is Wipro overvalued or undervalued?

As of 16 September 2025, Wipro's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 19.77, an EV to EBITDA of 12.96, and a PEG ratio of 0.98, which suggests that the stock is trading at a reasonable price relative to its earnings growth potential.
In comparison to its peers, Wipro's PE ratio is notably lower than TCS at 23.1 and Infosys at 23.06, both of which are classified as attractive and fair, respectively. Additionally, Wipro's strong ROCE of 31.24% and a solid dividend yield of 4.33% further reinforce its undervalued status. While Wipro has underperformed the Sensex year-to-date with a return of -15.93% compared to the Sensex's 5.43%, its current valuation metrics suggest that it presents a compelling investment opportunity.