WIT : NYSE : Technology
$10.2 0.0 | 0.0%
Today's Range: 10.18 - 10.24
Avg. Daily Volume: 511100.0
03/24/17 - 2:09 PM ET

Financial Analysis

WIPRO LTD's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WIPRO LTD has strong liquidity. Currently, the Quick Ratio is 1.85 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.97% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1934.21903.58
EBITDA ($mil)394.17390.42
EBIT ($mil)317.87338.94
Net Income ($mil)298.37330.9

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4881.524626.71
Total Assets ($mil)11773.6810238.56
Total Debt ($mil)2301.651479.5
Equity ($mil)7447.96897.82

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin32.7732.49
EBITDA Margin20.3720.5
Operating Margin16.4317.81
Sales Turnover0.690.75
Return on Assets10.6413.51
Return on Equity16.8220.06
Debt Q3 FY16 Q3 FY15
Current Ratio2.172.73
Interest Expense5.335.34
Interest Coverage59.6863.51

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)2417.052455.57
Div / share0.00.0
Book value / share3.082.81
Institutional Own % n/a n/a
Avg Daily Volume511647.0830834.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 29.28 for the IT Services industry and a discount compared to the S&P 500 average of 26.70. To use another comparison, its price-to-book ratio of 3.26 indicates valuation on par with the S&P 500 average of 2.97 and a significant discount versus the industry average of 10.00. 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 19.29 Peers 29.28   WIT 19.02 Peers 20.98

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

WIT is trading at a significant discount to its peers.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WIT 18.24 Peers 21.61   WIT NM Peers 1.38

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WIT 3.26 Peers 10.00   WIT -7.15 Peers 4.51

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 2.99 Peers 5.55   WIT 5.21 Peers 12.48

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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