Wipro may be undervalued with poor growth indicators, but the 6 analysts following the company give it an rating of underperform. Their target prices range from $4.64 to $6.0 per share, for an average of $5.27. At today's price of $5.29, Wipro is trading 0.28% away from its average target price, suggesting there is an analyst consensus of little upside potential for the stock.
Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. Based in Bengaluru, India, the Large-Cap Technology company has 250,000 full time employees. Wipro has offered a 19.4% dividend yield over the last 12 months.
Wipro has a trailing twelve month P/E ratio of 20.3, compared to an average of 35.0 for the Technology sector. Considering its EPS guidance of $0.28, the company has a forward P/E ratio of 18.9.
On the other hand, the market is potentially undervaluing Wipro in terms of its book value because its P/B ratio is 0.04. In comparison, the sector average P/B ratio is 7.92. The company's shares are currently 69.4% below their Graham number, indicating that its shares have a margin of safety.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,368 | $8,471 | $8,094 | $8,469 | $10,425 | $11,011 |
| Gross Margins | 28% | 30% | 28% | 32% | 30% | 28% |
| Net Margins | 15% | 15% | 16% | 18% | 15% | 13% |
| Net Income (M) | $1,230 | $1,302 | $1,295 | $1,486 | $1,612 | $1,383 |
| Net Interest Expense (M) | $3,451 | $5,616 | $5,136 | $4,298 | $5,325 | $10,077 |
| Depreciation & Amort. (M) | $21,124 | $19,474 | $20,862 | $27,656 | $30,911 | $33,402 |
| Diluted Shares (M) | 4,758 | 6,022 | 5,848 | 5,662 | 5,482 | 5,489 |
| Earnings Per Share | $0.26 | $0.22 | $0.22 | $0.26 | $0.29 | $0.25 |
| EPS Growth | n/a | -15.38% | 0.0% | 18.18% | 11.54% | -13.79% |
| Avg. Price | $3.78 | $3.96 | $3.94 | $7.84 | $6.97 | $5.29 |
| P/E Ratio | 14.54 | 18.0 | 17.91 | 30.15 | 24.03 | 21.16 |
| Free Cash Flow (M) | $1,293 | $1,680 | $1,337 | $2,018 | $1,460 | $1,589 |
| EV / EBITDA | 0.76 | 1.05 | 0.93 | 1.39 | 1.15 | 0.82 |
| Total Debt (M) | $695 | $410 | $64 | $102 | $744 | $745 |
| Net Debt / EBITDA | 0.0 | -0.09 | -0.08 | -0.08 | -0.02 | -0.01 |
| Current Ratio | 2.37 | 2.67 | 2.4 | 2.27 | 2.01 | 2.47 |
