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Wipro Ltd. (NYSE: WIT) – Is this large market cap stock undervalued?

Wipro Ltd. (NYSE: WIT), is firmly in the large market cap category with market cap of 17619.42. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Wipro Ltd. is 9.85 (with a change from open of 2.34%), this in conjunction with a target price of 10.25. Volume today has so far reached 538627, with an average volume of about 686.13. The GAP for this stock, is -0.62%.

The P/E ratio is 18.18, bringing the forward P/E to a value of 15.89. The current EPS for Wipro Ltd., is 0.53, with a EPS growth for this year coming to a value of 2.80%. Performance has been interesting with performance year to date coming to -15.38%.

Looking further into the growth statistics for Wipro Ltd., EPS is looking like it will grow 11.72% in the next year. Looking even further it is projected to be 14.00%. Quarter over quarter is -6.50% for EPS growth and for sales growth quarter over quarter it is 11.10%. Looking at past EPS growth statistics we see that for the past five years it has been 9.70%. Sales growth for the past five years has in fact been 13.60%.

Looking at the ownership, we see that the insider ownership is at 79.00% and institutional ownership is 2.50%. Shares outstanding is 1818.31, while shares float is at a value of 889.32. Float short for Wipro Ltd. is 1.62% and the short ratio is 20.98.

In terms of debt, long term debt/equity is 0.04, while the total debt/equity comes to 0.26. The ability to meet these debts, means that the current ratio is 2.4, and the quick ratio is 2.3. The most recent gross margin is 30.00% and their operating margin is 18.20%. The profit margin is 16.70%.

Wipro Ltd. has seen returns on assets of 12.50%, and on investment, 10.30%. Return on equity is 19.00%. Price/Earnings to growth ratio is 1.3. Price/Sales ratio is at a value of 2.23, with Price/book ratio coming to 3.24 and Price/cash is 3.63, and finally Price/Free cash Flow is 589.28.

The simple moving averages are -4.37% and -14.13% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -24.56% and the 52 week low is 2.12%.

Wipro Ltd. has a dividend yield of 0.31%, with a current price of 9.85. The ability to pay this means the payout ratio is 16.80%. This is in an industry, Information Technology Services, with equally high dividends from other companies in this sector, which it is Technology. Wipro Ltd. is based in India.

Performance in the Information Technology Services industry means that Wipro Ltd. has seen performance for the past week of -0.31%, with performance for the month coming to -0.41%. Looking at the data for the quarter it is at a value of -21.54%, and for the half year the performance is -21.25%. Volatility for this week is 0.97% and for the month this is 1.31%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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