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:
We started the process of determining a valid price forecast for Wipro Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Wipro Ltd ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1619%. In terms of the factors that were most noteworthy in this DCF analysis for WIT, they are:
In the past 5.02 years, Wipro Ltd has a compound free cash flow growth rate of 0.03%; that's better than just 20.96% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately just 13.65% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 46.24% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Wipro Ltd? See ZNGA, LOV, HEAR, BOX, and TRCK.
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