WIT
Wipro Limited
$2.01
Platform & Compounding FCF
70%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 47.2% below fair value
You pay
$2.01
Bear
$3.17
Fair
$3.81
Bull
$4.40
Bear
$3.17
+57.8%
4% stage 1 growth, 11% discount
Fair
$3.81
+89.6%
7% stage 1 growth, 11% discount
Bull
$4.40
+119.1%
9% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (7% base case)
Terminal Value % of EV
37%
Implied Market Multiple
12.8x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $7.35 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $3.81 per share.
Warnings
Wall Street's average price target is $7.35 (from 21 analysts). Our estimate is 64% below the consensus -- consider that gap carefully.
Financial statements were converted from INR into USD using USDINR at 0.0105 USD per INR.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions