SNPS

Synopsys, Inc.

Fundamental data last updated:May 13, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

05/27/2026

Business Summary

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California.

 


VALUATION

P/E

75.08

Market Cap ($M USD)

$98.88B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

12.35

PRICE TO BOOK

2.71

EV / EBITDA

40.45

5-Year Average P/E

Free Cash Flow Yield

2.30%

DCF Value

$246.40

Graham Number

$171.76

Price to FCF

43.39

EV to FCF

46.86

Earnings Yield

1.33%

FCF Yield

2.30%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.88

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$1.33T

Return on Equity (ROE)

4.57%

FREE CASH FLOW

Operating Margin

10.82%

Debt-to-Equity

0.50

Piotroski F-Score

4

Altman Z-Score

4.13

Return on Invested Capital (ROIC)

2.11%

Current Ratio

0.86

Quick Ratio

0.80

Net Debt to EBITDA

3.00

Interest Coverage

1.45

Gross Profit margin

75.14%

FCF PER SHARE

$14.23

REVENUE PER SHARE

$49.99

Gainseekers Quantitative Analysis

Summary

Synopsys, Inc. appears to be priced for perfection, with its market valuation significantly extended above its DCF value and Graham Number. The Price/Earnings ratio of 74.62 suggests a high growth expectation, yet the Earnings Yield of 1.34% indicates limited immediate returns. Despite a robust Altman Z-score of 4.14, signaling financial stability, the lack of a Forward P/E and an EPS estimate of zero for next year raises questions about future earnings visibility. This juxtaposition of high valuation and uncertain growth prospects suggests a cautious approach for value investors.

AI Exposure / Tech Reliance

Operating within the Software - Infrastructure industry, Synopsys is strategically positioned to leverage AI advancements. Its focus on electronic design automation and semiconductor IP solutions aligns well with the increasing demand for AI-driven technologies. This positioning enhances its resilience in adapting to modern tech shifts.

The Bull Case

For the discerning GARP investor, Synopsys offers compelling institutional tailwinds. The company's ROIC of 2.11% and FCF Yield of 2.32% reflect efficient capital allocation and cash generation. Despite a moderate Piotroski F-Score of 4, its Gross Profit Margin of 75.14% underscores strong pricing power. These metrics suggest a company capable of sustaining growth through strategic reinvestment and operational efficiency.

The Bear Case

However, the bear case cannot be ignored. Synopsys's Price/Sales ratio of 12.27 and EV to EBITDA of 40.22 highlight a potentially overvalued stock, especially when juxtaposed with its modest Return on Equity of 4.57%. The stock's proximity to its 52-week high further indicates technical overextension. Additionally, a Current Ratio of 0.86 raises liquidity concerns, suggesting potential challenges in meeting short-term obligations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$543.57

Institutional Ownership %

1-Year Beta

1.25

Insider Buying % (6 Mo)

Distance to 52-Week High

26.26%

Distance to 52-Week Low

27.12%

EARNINGS SURPRISE %

5.90%

50-DAY SMA

$440.97

200-DAY SMA

$476.67

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.