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Wipro Ltd
WIT : NYSE : Technology
$12.80 up0.22 | 1.75%
Today's Range: 12.54 - 12.84
Avg. Daily Volume: 517,400
10/09/15 - 4:08 PM ET

Financial Analysis

WIPRO LTD's gross profit margin for the first quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. WIPRO LTD is extremely liquid. Currently, the Quick Ratio is 2.26 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.91% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)1924.451854.11
EBITDA ($mil)409.5423.91
EBIT ($mil)356.85377.51
Net Income ($mil)344.03350.18

Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)4354.83400.48
Total Assets ($mil)9947.388763.02
Total Debt ($mil)1286.11785.9
Equity ($mil)6752.766088.03

Profitability Q1 FY15 Q1 FY14
Gross Profit Margin33.2135.08
EBITDA Margin21.2722.86
Operating Margin18.5420.36
Sales Turnover0.760.85
Return on Assets13.8915.71
Return on Equity20.4722.61
Debt Q1 FY15 Q1 FY14
Current Ratio2.682.72
Interest Expense4.973.36
Interest Coverage71.81112.25

Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)2454.472450.6
Div / share0.00.0
Book value / share2.752.48
Institutional Own % n/a n/a
Avg Daily Volume501019.0569024.0


BUY. The current P/E ratio indicates a discount compared to an average of 27.70 for the IT Services industry and a premium compared to the S&P 500 average of 19.38. To use another comparison, its price-to-book ratio of 4.37 indicates a significant premium versus the S&P 500 average of 2.58 and a significant discount versus the industry average of 7.84. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WIPRO LTD proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WIT 22.24 Peers 27.70   WIT 23.76 Peers 19.08

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WIT is trading at a discount to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WIT is trading at a premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WIT 19.37 Peers 20.61   WIT 6.23 Peers 3.72

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

WIT is trading at a valuation on par with its peers.


Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WIT trades at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WIT 4.37 Peers 7.84   WIT -3.58 Peers 15.81

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WIT is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WIT is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WIT 3.88 Peers 5.30   WIT 1.99 Peers 6.26

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WIT is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WIT significantly trails its peers on the basis of sales growth



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