SNPS

Synopsys

Fundamental data last updated:March 30, 2026

company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/27/26

Business Summary

Synopsys develops software tools used for semiconductor design, verification, and related electronic design automation processes. The company provides technology solutions that help engineers design and test integrated circuits and complex electronic systems.

VALUATION

P/E

58.5

Market Cap ($M USD)

$72,883

Forward P/E

22.3

PEG

1.6

PRICE TO SALES

8.3

PRICE TO BOOK

2.4

EV / EBITDA

28.7

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$6.58

Next Year EPS Growth Estimate

$17.06

Next Year Revenue Growth Estimate

10.70%

Return on Equity (ROE)

3.60%

Operating Margin

12.30%

Debt-to-Equity

0.4

Piotroski F-Score

3

Altman Z-Score

3.2

Return on Invested Capital (ROIC)

4.10%%

Current Ratio

1.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Synopsys operates in the Technology sector within Software – Infrastructure and trades on the Nasdaq with a market cap of $72,883 million. The company has a Price / Earnings ratio of 58.5 and a Forward P/E of 22.3, with a PEG Forward of 1.6. It reports Return on Equity of 10.70% and an Operating Margin of 3.60%, with Debt / Equity at 12.30%.

AI Exposure / Tech Reliance

As a software infrastructure company in the Technology sector, Synopsys is highly reliant on advanced software and AI-driven tools. Its positioning suggests meaningful exposure to AI and complex chip design technologies.

The Bull Case

The valuation shows a significant drop from a P/E of 58.5 to a Forward P/E of 22.3, which may indicate strong expected earnings improvement. A PEG Forward of 1.6 combined with Sales Growth Next Year of $17.06 suggests growth expectations that could support the current Price / Sales of 8.3.

The Bear Case

The current Operating Margin of 3.60% and Return on Equity of 10.70% may indicate limited profitability relative to its valuation. A P/E of 58.5 and Price / Sales of 8.3 could leave the stock vulnerable if growth expectations are not met.

Market Sentiment & Smart Money

Short Interest %

2.50%

Analyst Consensus

1.62

Average Analyst Price Target

$542.76

Institutional Ownership %

91.00%

1-Year Beta

1.4

Insider Buying % (6 Mo)

3.00%%

Distance to 52-Week High

58.40%%

Distance to 52-Week Low

104.00%%