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Wipro, Ltd. 507685
Last Close Quantitative Fair Value Estimate Market Cap (Bil) Sector Industry Country of Domicile
408.50 482.01 942.8 aTechnology Information Technology
Services
IND
India
Wipro, Ltd. is an IT services company, which provides
research and development, infrastructure outsourcing and
business consulting services.
Quantitative Scores Scores
All Rel Sector Rel Country
Quantitative Moat Narrow 97 98 93
Valuation Undervalued 92 100 81
Quantitative Uncertainty High 67 65 76
Financial Health Strong 93 93 100
a IND
507685
Undervalued Fairly Valued Overvalued
Valuation
Current 5-Yr Avg
Sector
Median
Country
Median
Price/Quant Fair Value 0.79 0.99 1.01 0.85
Price/Earnings 14.2 17.9 18.2 9.8
Forward P/E 13.3 11.9 6.9
Price/Cash Flow 13.4 11.3 5.6
Price/Free Cash Flow 15.7 16.1 12.4
Dividend Yield % 1.83 2.12 2.35
Price/Book 3.3 3.9 1.6 0.6
Price/Sales 2.5 2.8 1.0 0.5
Profitability
Current 5-Yr Avg
Sector
Median
Country
Median
Return on Equity % 23.3 24.7 10.6 12.4
Return on Assets % 15.2 14.9 5.8 4.4
Revenue/Employee (Mil) 2.9 2.3 0.4 6.4
Quantitative Moat Score
100
0
20
40
60
80
100
2006 2007 2008 2009 2010 2011 2012 2013
Financial Health
Current 5-Yr Avg
Sector
Median
Country
Median
Distance to Default 0.8 0.7 0.6 0.5
Solvency Score 201.4 511.7 558.7
Assets/Equity 1.5 1.7 1.6 2.3
Long-Term Debt/Equity 0.0 0.1 0.1 0.3
Price Versus Quantitative Fair Value
2009 2010 2011 2012 2013 2014
138
276
414
552
690
Quantitative Fair Value Estimate
Total Return
Sales/Share
Forecast Range
Forcasted Price
Dividend
Split
Momentum:
Standard Deviation: 28.12
315.30 52-Wk 462.85
109.02 5-Yr 499.90
192.6 21.7 -17.4 0.4 5.4 Total Return %
151.7 8.9 -1.2 -17.9 -1.2 +/ Market (Morningstar World
Index)
0.59 1.22 1.50 1.52 1.83 Dividend Yield %
23.2 23.3 17.9 15.2 14.2 Price/Earnings
3.7 4.0 2.7 2.3 2.5 Price/Revenue
Overvalued
Fairly Valued
Undervalued
1,606 Monthly Volume (Thousand Shares)
Liquidity: High
2009 2010 2011 2012 2013 TTM Financials (Fiscal Year in Mil)
254,564 271,957 310,542 371,971 374,256 374,256 Revenue
29.0 6.8 14.2 19.8 0.6 0.0 % Change
41,390 51,511 57,668 64,013 69,972 69,972 Operating Income
22.9 24.5 12.0 11.0 9.3 0.0 % Change
34,415 46,116 52,977 55,730 66,359 66,359 Net Income
36,832 50,998 40,437 40,076 70,422 70,422 Operating Cash Flow
-16,592 -12,631 -12,211 -12,977 -10,616 -10,616 Capital Spending
20,240 38,367 28,226 27,099 59,806 59,806 Free Cash Flow
8.0 14.1 9.1 7.3 16.0 16.0 % Sales
14.18 18.75 21.61 22.69 26.98 26.98 EPS
7.0 32.2 15.3 5.0 18.9 0.0 % Change
8.34 15.66 11.52 11.02 11.03 24.32 Free Cash Flow/Share
2.40 8.00 6.00 6.00 6.00 Dividends/Share
60.26 80.14 97.65 116.25 133.94 115.23 Book Value/Share
2,442 2,452 2,454 2,462 2,463 2,463 Shares Outstanding (Mil)
Profitability
24.6 26.6 24.3 21.2 23.3 23.3 Return on Equity %
13.4 14.9 15.1 13.8 15.2 15.2 Return on Assets %
13.5 17.0 17.1 15.0 17.7 17.7 Net Margin %
0.99 0.88 0.89 0.92 0.85 0.85 Asset Turnover
1.9 1.7 1.5 1.5 1.5 1.5 Financial Leverage
30.0 31.5 31.5 29.3 30.4 30.4 Gross Margin %
16.3 18.9 18.6 17.2 18.7 18.7 Operating Margin %
18,681 18,107 19,759 22,510 854 854 Long-Term Debt
150,182 196,112 239,680 285,314 283,812 283,812 Total Equity
5.7 5.3 5.7 6.5 6.8 6.8 Fixed Asset Turns
Growth Per Share
1-Year 3-Year 5-Year 10-Year
Revenue % 17.4 11.2 13.7 24.2
Operating Income % 16.8 10.5 15.8 22.1
Earnings % 18.9 12.9 15.3 22.1
Dividends % 0.0 35.7
Book Value % -0.7 12.9 16.7 22.4
Stock Total Return % 24.3 0.9 12.3 -2.6
Quarterly Revenue & EPS
Revenue (Bil) Jun Sep Dec Mar Total
2013 104.8 106.4 109.5 53.5 374.3
2012 84.9 90.1 98.8 98.2 372.0
2011 71.9 77.7 78.2 82.7 310.5
2010 63.9 68.9 69.4 69.8 272.0
Earnings Per Share
2013 6.43 6.55 6.98 7.01 26.98
2012 5.44 5.30 5.93 6.03 22.69
2011 5.42 5.25 5.39 5.58 21.61
2010 4.13 4.78 4.91 4.93 18.75
Revenue Growth Year On Year %
18.6 18.1
15.9
26.3
18.7
23.4
18.1
10.8
-45.5
2011 2012 2013
Quantitative Equity Report | Release Date: 29 July 2013 | Reporting Currency: INR | Trading Currency: INR
2013 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information
contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution
is prohibited without written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.

Page 1 of 1

Morningstar Equity & Credit Research Methodology
Fundamental Analysis
At Morningstar, we believe buying shares of superior
businesses at a discount and allowing them to com-
pound over time is the surest way to create wealth in
the stock market. The long-term fundamentals of busi-
nesses, such as cash ow, competition, economic cy-
cles, and stewardship, are our primary focus. Occa-
sionally, this approach causes our recommendations to
appear out of step with the market, but willingness to
be contrarian is an important source of outperfor-
mance and a benet of Morningstars independence.
Our analysts conduct primary research to inform our
views on each rms moat, fair value and uncertainty.
Economic Moat
The economic moat concept is a cornerstone of Morn-
ingstars investment philosophy and is used to distin-
guish high-quality companies with sustainable com-
petitive advantages. An economic moat is a structural
feature that allows a rm to sustain excess returns
over a long period of time. Without a moat, a compa-
nys prots are more susceptible to competition. Com-
panies with narrow moats are likely to achieve normal-
ized excess returns beyond 10 years while wide-moat
companies are likely to sustain excess returns beyond
20 years. The longer a rm generates economic prots,
the higher its intrinsic value. We believe lower-quality
no-moat companies will see their returns gravitate to-
ward the rms cost of capital more quickly than compa-
nies with moats will. We have identied ve sources of
economic moats: intangible assets, switching costs,
network effect, cost advantage, and efcient scale.
Fair Value Estimate
Our analyst-driven fair value estimate is based primari-
ly on Morningstars proprietary three-stage discounted
cash ow model. We also use a variety of supplemen-
tary fundamental methods to triangulate a companys
worth, such as sum-of-the-parts, multiples, and yields,
among others. Were looking well beyond next quarter
to determine the cash-generating ability of a companys
assets because we believe the market price of a securi-
ty will migrate toward the rms intrinsic value over
time. Economic moats are not only an important sorting
mechanism for quality in our framework, but the desig-
nation also directly contributes to our estimate of a
companys intrinsic value through sustained excess re-
turns on invested capital.
Uncertainty Rating
The Morningstar Uncertainty Rating demonstrates our
assessment of a rms cash ow predictability, or valu-
ation risk. From this rating, we determine appropriate
margins of safety: The higher the uncertainty, the wider
the margin of safety around our fair value estimate be-
fore our recommendations are triggered. Our uncertain-
ty ratings are low, medium, high, very high, and ex-
treme. With each uncertainty rating is a corresponding
set of price/fair value ratios that drive our recommen-
dations: Lower price/fair value ratios (<1.0) lead to pos-
itive recommendations, while higher price/fair value
Morningstar Equity Analyst Report
Intangible
Assets
Switching
Costs
Network
Effect
Cost
Advantage
Efcient
Scale
COMPETI TI VE FORCES
NARROW WI DE NONE COMPANY PROFI TABI LI TY
Moat Sources:
Fundamental
Analysis
Economic
Moat Rating
Fair Value
Estimate
Uncertainty
Assessment
Star
Rating
QQQQQ
QQQQ
QQQ
QQ
Q
Economic Moat
2013 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information
contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is
prohibited without written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.

ratios (>1.0) lead to negative recommendations. In very
rare cases, the fair value estimate for a rm is so un-
predictable that a margin of safety cannot be properly
estimated. For these rms, we use a rating of extreme.
Very high and extreme uncertainty companies tend to
have higher risk and volatility.
Credit Rating
The Morningstar Corporate Credit Rating measures the
ability of a rm to satisfy its debt and debtlike obliga-
tions. The higher the rating, the less likely we think the
company is to default on these obligations.
Quantitatively Driven Valuations
To complement our analysts work, we produce Quanti-
tative Ratings for a much larger universe of companies.
These ratings are generated by statistical models that
are meant to divine the relationships between Morn-
ingstars analyst-driven ratings and key nancial data
points. Consequently, our quantitative ratings are di-
rectly analogous to our analyst-driven ratings.
Quantitative Fair Value Estimate (QFVE): The QFVE is
analogous to Morningstars fair value estimate for
stocks. It represents the per-share value of the equity
of a company. The QFVE is displayed in the same cur-
rency as the companys last close price.
Valuation: The valuation is based on the ratio of a compa-
nys quantitative fair value estimate to its last close price.
Quantitative Uncertainty: This rating describes our lev-
el of uncertainty about the accuracy of our quantitative
fair value estimate. In this way it is analogous to Morn-
ingstars fair value uncertainty ratings.
Morningstar Equity & Credit Research Methodology
Quantitative Economic Moat: The quantitative moat
rating is analogous to Morningstars analyst-driven
economic moat rating in that both are meant to de-
scribe the strength of a rms competitive position.
Financial Health: Financial health is based on Morning-
stars proprietary Distance to Default calculation.
Understanding Differences Between Analyst
and Quantitative Valuations
If our analyst-driven ratings did not sometimes differ
from our quantitative ratings, there would be little val-
ue in producing both. Differences occur because our
quantitative ratings are essentially a highly sophisti-
cated analysis of the analyst-driven ratings of compa-
rable companies. If a company is unique and has few
comparable companies, the quantitative model will
have more trouble assigning correct ratings, while an
analyst will have an easier time recognizing the true
characteristics of the company. On the other hand, the
quantitative models incorporate new data efciently
and consistently. Empirically, we nd quantitative rat-
ings and analyst-driven ratings to be equally powerful
predictors of future performance. When the analyst-
driven rating and the quantitative rating agree, we nd
the ratings to be much more predictive than when they
differ. In this way, they provide an excellent second
opinion for each other. When the ratings differ, it may
be wise to follow the analysts rating for a truly unique
company with its own special situation, and follow the
quantitative rating when a company has several rea-
sonable comparable companies and relevant informa-
tion is owing at a rapid pace.

Uncertainty Rating
Morningstar Equity Analyst Report
Price/Fair Value
Uncertainty Rating
Low Medium High Very High
QQQQQ
QQQQ
QQQ
QQ
Q
1.50
0.75
0.50
2.00
1.25
0.25
1.75
1.00
125%
135%
90%
105%
110%
70%
80%
95%
155%
175%
85%
80%
115%
125%
60%
50%
2013 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information
contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is
prohibited without written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.