Is Wipro overvalued or undervalued?

As of 26 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 strong financial ratios, including a PE ratio of 18.35, an EV to EBITDA of 11.89, and a PEG ratio of 0.91. These metrics suggest that Wipro is trading at a discount compared to its peers, such as TCS with a PE of 21.3 and Infosys with a PE of 22.07.
In comparison to its industry, Wipro's return on capital employed (ROCE) stands at an impressive 31.24%, while its return on equity (ROE) is 15.95%, both of which are favorable indicators of operational efficiency. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -21.97% compared to the Sensex's 2.93%, the overall valuation metrics suggest that Wipro presents a compelling investment opportunity at its current price of 235.65.