QualityDipStocks / Technology · Software
Synopsys SNPS
Outside our quality screen, so we don’t track its dips. It’s 13% below its 52-week high.
Outside our quality screen, trading near our fair value estimate, 5% over its Market Value.
- Fair value est.
- $440.78−6%
- Market Value
- $446.42price +5%
- Off 52-wk high
- −13%
- Risk vs market
- Highbeta 1.68
3 bullish · 5 bearish See why
Key levels
Every level vs today’s $467.61
- 52-wk lowlowest close, 1 year$367.70−21.4%
- Fair value est.base case$440.78−5.7%
- Market Valueavg paid since Aug 26$446.42−4.5%
- PriceFri Oct 30 close$467.61you are here
- 52-wk highhighest close, 1 year$534.56+14.3%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 15.0% ±2 points. Bear = 10.5% and 13.0%; bull = 8.5% and 17.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, SNPS’s free cash flow would need to grow about 16% a year for five years; our estimate uses 15%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much SNPS moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings much more than the market, and its own price swings are 3.5× the S&P 500’s.
- Beta vs S&P 500
- 1.68
- Volatility
- 45% vs 13% SPY
- Correlation SPY
- 0.48
- Correlation QQQ
- 0.51
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 3 of 5
GrowthSales grew 46% to $9.4B over the last 12 months vs the 12 months before (SEC filings).
Cash returnsFree cash flow grew 114% over the last 12 months vs the 12 months before.
ValuationPrice / book of 2.9×, below the 7.1× median for the 149 Technology companies we cover.
Top bearish points 5 of 5
ProfitabilityOperating margin narrowed to 13.0% in FY2025 from 23.9% in FY2023 (SEC filings).
Balance sheetOperating income covers interest only 1.3× over the last 12 months.
Balance sheetDebt rose 74491% to $13.5B from FY2023 to FY2025.
Cash returnsShare count up 18.9% in a year: existing holders are being diluted.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%.
Who’s talking about it
Notable investors, executives, analysts and public figures on Synopsys in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Software
All fundamentals
P/E 83.5 · FCF yield 3.1% · ROE 4%
Valuation
- P/E
- 83.5×Technology median 33.9×
- Price / FCF
- 32.7×
- FCF yield
- 3.1%
- EV / EBITDA
- 36.9×
- Price / sales
- 9.55×
- Price / book
- 2.89×
- Market cap
- $89.9Bprice × diluted shares
- Enterprise value
- $96.4B
Growth
- Revenue, 12 months
- $9.4B
- Sales growth, 12 months
- +46.3%vs the 12 months before
- Sales growth, 3 yrs
- +11.6%/yrfrom FY2022
- Diluted EPS, 12 months
- $5.72
- EPS growth, last FY
- −44.6%
- Net income, 12 months
- $1.1B
- Net income growth
- −46%12 months vs before
Profitability
- Gross margin
- 72.4%
- Operating margin
- 8.5%
- Net margin
- 11.4%
- FCF margin
- 29.2%
- Return on equity
- 4%
- Return on invested capital
- 2%
Balance sheet
- Cash & short-term inv.
- $3.6B
- Total debt
- $10.0B
- Net cash
- −$6.4B
- Debt / equity
- 0.32×
- Interest coverage
- 1.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $2.7B
- FCF growth, 12 months
- +114%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $300M0.3% of market cap
- Share count, 1 year
- +18.9%diluted shares vs a year ago
- Stock-based comp
- $950M
Trailing 12 months to Jul 31, 2026; balance sheet at Jul 31, 2026. From Synopsys’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $440.78 · MV $446.42 · FCF value $342.37
Assumes 15.0% growth for 5 years (revenue grew 15.2% a year FY22–FY25; capped at 15%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $14.29 a share (trailing 12 months to Jul 31, 2026), from the 10-Q filed Aug 26, 2026. Net debt $6.4B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 53 · 5 days +8.7%
The business
FCF $2.8B · Sales +42%
- Free cash flow, 12 months$2.8B
- Free-cash-flow yield2.9%
- Free-cash-flow margin29%
- Gross margin72%
- Operating margin11%
- Return on invested capital2%
- Return on equity4%
- Sales growth (latest quarter vs year-ago quarter)+42%
- Net debt / EBITDA1.9×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
SNPS is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.