WIT Relative Valuation
WIT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WIT is overvalued; if below, it's undervalued.
Historical Valuation
Wipro Ltd (WIT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.92 is considered Undervalued compared with the five-year average of 21.58. The fair price of Wipro Ltd (WIT) is between 3.77 to 4.61 according to relative valuation methord. Compared to the current price of 2.77 USD , Wipro Ltd is Undervalued By 26.57%.
Relative Value
Fair Zone
3.77-4.61
Current Price：2.77
26.57%
Undervalued
19.26
PE
1Y
3Y
5Y
Trailing
Forward
12.15
EV/EBITDA
Wipro Ltd. (WIT) has a current EV/EBITDA of 12.15. The 5-year average EV/EBITDA is 13.33. The thresholds are as follows: Strongly Undervalued below 8.47, Undervalued between 8.47 and 10.90, Fairly Valued between 15.76 and 10.90, Overvalued between 15.76 and 18.19, and Strongly Overvalued above 18.19. The current Forward EV/EBITDA of 12.15 falls within the Historic Trend Line -Fairly Valued range.
14.52
EV/EBIT
Wipro Ltd. (WIT) has a current EV/EBIT of 14.52. The 5-year average EV/EBIT is 16.43. The thresholds are as follows: Strongly Undervalued below 10.06, Undervalued between 10.06 and 13.25, Fairly Valued between 19.61 and 13.25, Overvalued between 19.61 and 22.79, and Strongly Overvalued above 22.79. The current Forward EV/EBIT of 14.52 falls within the Historic Trend Line -Fairly Valued range.
2.82
PS
Wipro Ltd. (WIT) has a current PS of 2.82. The 5-year average PS is 3.00. The thresholds are as follows: Strongly Undervalued below 1.73, Undervalued between 1.73 and 2.37, Fairly Valued between 3.63 and 2.37, Overvalued between 3.63 and 4.26, and Strongly Overvalued above 4.26. The current Forward PS of 2.82 falls within the Historic Trend Line -Fairly Valued range.
16.51
P/OCF
Wipro Ltd. (WIT) has a current P/OCF of 16.51. The 5-year average P/OCF is 17.41. The thresholds are as follows: Strongly Undervalued below 11.11, Undervalued between 11.11 and 14.26, Fairly Valued between 20.56 and 14.26, Overvalued between 20.56 and 23.71, and Strongly Overvalued above 23.71. The current Forward P/OCF of 16.51 falls within the Historic Trend Line -Fairly Valued range.
20.10
P/FCF
Wipro Ltd. (WIT) has a current P/FCF of 20.10. The 5-year average P/FCF is 24.64. The thresholds are as follows: Strongly Undervalued below 3.30, Undervalued between 3.30 and 13.97, Fairly Valued between 35.31 and 13.97, Overvalued between 35.31 and 45.98, and Strongly Overvalued above 45.98. The current Forward P/FCF of 20.10 falls within the Historic Trend Line -Fairly Valued range.
Wipro Ltd (WIT) has a current Price-to-Book (P/B) ratio of 3.04. Compared to its 3-year average P/B ratio of 3.23 , the current P/B ratio is approximately -5.92% higher. Relative to its 5-year average P/B ratio of 3.77, the current P/B ratio is about -19.30% higher. Wipro Ltd (WIT) has a Forward Free Cash Flow (FCF) yield of approximately 5.57%. Compared to its 3-year average FCF yield of 5.95%, the current FCF yield is approximately -6.39% lower. Relative to its 5-year average FCF yield of 5.03% , the current FCF yield is about 10.72% lower.
3.08
P/B
Median3y
3.23
Median5y
3.77
5.47
FCF Yield
Median3y
5.95
Median5y
5.03
Competitors Valuation Multiple
The average P/S ratio for WIT's competitors is 2.82, providing a benchmark for relative valuation. Wipro Ltd Corp (WIT) exhibits a P/S ratio of 2.82, which is 0.00% above the industry average. Given its robust revenue growth of -2.33%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WIT decreased by 18.81% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from 14.47 to 14.37.
The secondary factor is the Revenue Growth, contributed -2.33%to the performance.
Overall, the performance of WIT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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