Wipro Ltd. is a global information technology (IT), services Provider. The Company develops and integrates solutions that enable its clients to leverage IT in achieving their business objectives at competitive costs. The company was founded in 1945 and is based in Bengaluru, India.
WIT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Wipro Ltd. To summarize, we found that Wipro Ltd ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1660.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Wipro Ltd ended up being:
The compound growth rate in the free cash flow of Wipro Ltd over the past 5.02 years is 0.03%; that's better than just 20.9% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 13.57% of the free cash flow producing stocks we're observing.
WIT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 46.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WIT, try ZNGA, BOX, LOV, HEAR, and TRCK.
As it became clear that our nation would not be spared the horrors of the novel coronavirus, I had a sinking feeling in my stomach regarding our investment sectors. But in a seemingly counterintuitive manner, our benchmark indices, particularly the technology-centric Nasdaq, went on to post blistering records. Therefore, you may want to stay at home and eschew international stocks to buy. Granted, many reasons exist why you should focus domestically with your investment dollars. First and foremost, it’s patriotic in the sense that assuming management also has a pro-America mindset, you’re investing in American jobs for American people. Second, as the dominant force in the global economy, our sheer importance means that your portfolio may benefit from a heavier allocation to domestic nam...
Automobile companies drove the markets, with stocks such as Bajaj Auto and Eicher Motors hitting their 52-week highs. Tata Motors has rallied 38.84% in January itself. IT stocks also contributed to the gains. Major gainers on the Nifty were Tata Motors, Adani Ports and SEZ, Wipro, Tech Mahindra and Maruti Suzuki with rise of 6.09%, 4.4%, 3.4%, 2.72% and 2.55%, respectively.