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Is this Large Market Cap Stock target price reasonable for Wipro Ltd. (NYSE:WIT)?

The company in question is, Wipro Ltd. (NYSE:WIT) currently with a stock price of 9.87 (1.86% today). The market cap for Wipro Ltd. is 18028.94, and is in the sector Technology, and Information Technology Services industry. The target price for Wipro Ltd. is 10.25. Currently Wipro Ltd. is trading with a P/E of 18.55, and a forward P/E of 16.18. Average volume for Wipro Ltd. is 579.83 and so far today it is 832300.

Performance in the last year for Wipro Ltd. has been -17.04%. For EPS growth, Wipro Ltd. has seen a growth of 2.80%, and is looking to grow in the next year to 11.52%. More long term stats show that EPS growth has been 9.70% over the last five years and could be 14.00% for the next five years. Wipro Ltd. has seen sales growth quarter over quarter at 11.10%, with EPS growth quarter over quarter at -6.50%. The 20-day simple moving average is -10.32%, with the 200-day simple moving average coming to -15.37%.

Since the IPO date for Wipro Ltd. on the 10/19/2000, Wipro Ltd. has seen performance year to date to be -13.81%. With Wipro Ltd. trading at 9.87, the dividend yield is 0.30%, and the EPS is 0.53.

So could Wipro Ltd., be undervalued? Well as said before P/E is 18.55. The PEG is 1.33, P/S is 2.29 and the P/B is at 3.31. The P/cash is 3.72, with P/free cash flow at 605.

Wipro Ltd. ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2.3. This is with long term debt/equity at 0.04, and total debt/equity at 0.26.

In terms of margins, Wipro Ltd. has a gross margin of 30.00%, an operating margin of 18.20% and a profit margin of 16.60%.Payout ratio for Wipro Ltd. is 16.80%. Return on assets come to 12.50% with return on investment coming to 10.30%.

Insider ownership for Wipro Ltd., is at 79.00% and institutional ownership comes to 2.50%. Outstanding shares are at 1826.64. While shares float is 889.31. The float short is currently 1.66%, and short ratio is 25.42.

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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Peter Clarke

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