Is Wipro overvalued or undervalued?

As of 26 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 assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 18.35, an EV to EBITDA of 11.89, and a PEG ratio of 0.91, all of which suggest that Wipro is trading at a discount compared to its peers.
In comparison to its industry peers, Wipro's PE ratio is notably lower than TCS's 21.3 and Infosys's 22.07, while its EV to EBITDA is also more favorable than TCS's 14.97. This positions Wipro as a more attractive investment opportunity within the software and consulting sector. Despite recent underperformance relative to the Sensex, with a year-to-date return of -21.97% compared to the Sensex's 2.93%, the fundamental metrics suggest that Wipro's current pricing does not reflect its strong operational performance, particularly highlighted by a ROCE of 31.24% and a dividend yield of 4.66%.