Synopsys Inc (SNPS) fair value: what the stock is really worth
As of Oct 14, 2026: fair value of Synopsys Inc $285, price $480, upside -40.5%, quality 42 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 8, 2026.
How to read this chart
60‑month range $260.83 – $645.35 · fair‑value band $203.06 – $460.73 · the $479.93 price screens above the $285.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 8, 2026.
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Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries.
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It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions.
It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components.
Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
Stock analysis
Synopsys Inc (SNPS) currently trades at $479.93, while our model-based Fair Value estimate is $285.44, 40.5% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $154.71 per share, and 0 of the 22 models we run sit above the $479.93 price.
Bear case: the Growth DCF group reads lowest at $49.62, and 22 of the 22 models stay below the price. Data coverage for this calculation is low.
Scenario range: $203.06 (bear) to $460.73 (bull), the price of $479.93 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Synopsys Inc reported revenue of $7.1B in FY2025 versus $4.2B in FY2021, a compound +13.8%/yr. Reported net income was $1.3B in FY2025, compounding +15.2%/yr from FY2021.
Key figures
Market cap $92.3B · P/E ratio 83.6 · P/S ratio 15.8 · EPS (TTM) $5.74 · Net margin 18.9% · Return on equity 3.7% · Return on assets (EBIT) 9.0% · Operating margin 14.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 10% below its 52-week high and 31% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −23% fair-value upside, at −41%, SNPS screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($6.89 to $216.97). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$203.06Fair Value $285.44Bull$460.73
Price $479.93 · Upside -40.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then ($5.49 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$62.17$156.25$319.2674
Growth DCF$61.40$148.06$294.4173
Owner Earnings$93.94$213.48$420.6271
All 22 models by family
DCF Models
FCF DCF$62.17$156.25$319.2674
Owner Earnings$93.94$213.48$420.6271
5Y Revenue Exit$11.64$49.32$98.3266
5Y EBITDA Exit$51.92$132.11$231.9571
5Y P/E Exit$73.81$177.10$295.0468
10Y Revenue Exit$26.25$67.65$127.2663
10Y EBITDA Exit$54.40$128.21$238.8064
10Y P/E Exit$68.90$161.12$291.4660
Earnings-Based
Graham-Dodd$47.27$216.97$297.8264
Lynch FV$56.98$81.41$105.8361
PEG = 1.0$56.98$81.41$105.8357
Multiples
P/E Multiple$145.99$194.65$243.3163
P/S Multiple$88.64$118.18$147.7358
P/B Multiple$88.64$118.18$147.7355
EV/EBIT$30.76$59.40$88.0563
EV/EBITDA$55.80$92.79$129.7865
EV/Revenuen/a$6.89$25.5150
Asset-Based
NCAV (Graham)$73.91$99.04$147.8254
Growth DCF
Growth DCF$61.40$148.06$294.4173
Rev-Margin DCF$11.64$49.62$98.7366
Economic Profit
Residual Income$112.38$112.91$119.0171
Growth Earnings
Growth-Adj P/E$108.29$154.71$201.1267
P/S and P/B multiple show the same value here: both are capped by the same earnings anchor (earnings per share times 17), because margin and return on equity do not support the sector multiple.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+15.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.9%
Start year 2020 (pandemic). Over 10 years: +12.1% a year
Revenue growth 35 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+14.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+14.1%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.14.1% vs 17.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 13%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+35.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+14.6%
Yearly sales growth analysts expect, extended to five years.
The revenue jump in 2026 (+37.8%) comes with 19% more shares (acquisition or merger paid in stock). Per share it is about +16.3%. The comparison above is unreliable in such a year.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +32.4% a year for the price and +11.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Moderate moat potential arises mainly from margins yet high leverage combined with low ROE and thin evidence across factors restricts durability of the business quality.
Main risk: The royalty element in IP licensing directly links results to partners scaling success and output timing which would hit revenue stability.
Synopsys is shifting its IP licensing toward deals that combine upfront fees with royalties tied to customers' actual chip production volumes. This could capture more value from the AI-driven surge in custom silicon, yet it also links results more directly to partners' scaling success and output timing. Will the royalty element create steadier recurring revenue than traditional licensing, or add fresh variability?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 351 stocks
Beats the industry median on 4/13 measures
Overall it trails its industry peers.
Valuation
Quality Score42 · Bottom 25%
Fair Value upside−40.5% · Below median
Profitability
Return on equity (12 months)3.7% · Below median
Return on assets2.8% · Above median
Net margin (12 months)11.4% · Above median
Operating margin (12 months)14.5% · Top 25%
Growth and dividend
Revenue growth42.4% · Top 25%
Balance sheet
Debt / equity0.48× · Highest 25%
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
P/E (12 months)83.6× · Priciest 25%
P/B3.26× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)9.80× · Priciest 25%
Price / free cash flow68.4× · Priciest 25%
EV/EBITDA49.6× · Priciest 25%
PEG2.19× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 25
FUTURE (revenue growth)100· sector 55
PAST (return on equity)15· sector 21
HEALTH (low debt)76· sector 98
DIVIDEND (yield)0· sector 30
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Synopsys Inc Fair Value". https://www.fairvalue-calculator.com/stock/SNPS
Frequently asked questions
Is Synopsys Inc (SNPS) overvalued or undervalued?
As of Oct 8, 2026, our model estimates a fair value of $285.44 versus a price of $479.93, about −41% upside (overvalued).
What is the fair value of SNPS?
Our model-based fair value for Synopsys Inc is $285.44 (as of Oct 8, 2026), built from audited fundamentals. The current price: $479.93.
What is the quality score of SNPS?
Synopsys Inc has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Synopsys Inc (SNPS)?
Our model-based price target is the fair value of $285.44 (as of Oct 8, 2026) from 22 valuation models. Cautious scenario $203.06, optimistic scenario $460.73. It is a calculation from audited fundamentals, not an analyst target.
What is the Synopsys Inc stock forecast for 2026?
Our models put fair value at $285.44, about −41% upside versus a price of $479.93 (overvalued). Cautious scenario $203.06, optimistic scenario $460.73. The calculation is refreshed regularly with new filings.
What is the revenue of Synopsys Inc (SNPS)?
Synopsys Inc reported trailing-twelve-month revenue of about $9.4B (latest available figure, as of Oct 8, 2026).
What growth is priced into Synopsys Inc (SNPS)?
For today's price to be fair in a discounted-cash-flow model, Synopsys Inc would have to grow free cash flow by +35.5 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.9 % per year. As of Oct 8, 2026.
What discount rate (WACC) does the fair value of SNPS use?
Our models discount Synopsys Inc at 9.8 %: a base by market capitalisation (large), damped by beta 1.23, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Synopsys Inc that is +35.5 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Synopsys Inc (SNPS) delivered so far?
Over the past 5 years revenue at Synopsys Inc grew +13.9 % a year. The price currently implies +35.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Synopsys Inc (SNPS) growing?
The median revenue growth in the sector is +10.6 % a year. That is the yardstick for the growth priced into Synopsys Inc (+35.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Synopsys Inc (SNPS)?
The free-cash-flow yield on the price is 1.46 %: that much free cash flow Synopsys Inc produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Synopsys Inc (SNPS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Synopsys Inc it is $285.44 per share (as of Oct 8, 2026), against a price of $479.93. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Synopsys Inc stock overvalued or undervalued in 2026?
As of Oct 8, 2026, SNPS trades above its calculated fair value: price $479.93, fair value $285.44, a gap of about −41% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SNPS?
No. The price is what the market pays today ($479.93); the fair value is what the company's own numbers justify ($285.44). For Synopsys Inc the two are $194.49 per share apart. That gap is exactly why we show both numbers side by side.
How much is Synopsys Inc worth?
The market values Synopsys Inc at about $92.3B (market capitalisation, as of Oct 8, 2026). Per share that is $479.93; our models calculate a fair value of $285.44 per share.
What do the bullish and bearish scenarios say about SNPS?
Our models span a range for Synopsys Inc: cautious scenario $203.06, base $285.44, optimistic $460.73 per share (as of Oct 8, 2026, price $479.93). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SNPS?
Synopsys Inc trades at a price-to-earnings ratio of 83.6 (as of Oct 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $285.44 is built from several models across several years. Other multiples: PEG 2.2, P/B 3.3, P/S 9.8, EV/EBITDA 49.6.
What is the PEG ratio of SNPS?
The PEG ratio of Synopsys Inc is 2.19 (P/E divided by earnings growth, as of Oct 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Synopsys Inc (SNPS)?
Balance-sheet figures for Synopsys Inc (as of Oct 8, 2026): return on equity 3.7%, debt of 0.48 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is SNPS from its 52-week high?
Synopsys Inc trades at $479.93, about 10% below its 52-week high of $534.56 and 31% above the low of $367.70 (as of Oct 14, 2026). Distance from the high says nothing about value: that is what the fair value of $285.44 is for.
Which stocks are comparable to Synopsys Inc?
From the same area (Technology) we also value Microsoft Corporation, Palantir Technologies Inc, Oracle Corporation, CrowdStrike Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Synopsys Inc stock attractive at the current price?
The data as of Oct 8, 2026: price $479.93, calculated fair value $285.44 (−41%), Quality Score 42/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SNPS calculated?
We run Synopsys Inc through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $285.44, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Synopsys Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Synopsys Inc (SNPS)?
The closing price on Oct 14, 2026 was $479.93. Our model-based fair value is $285.44, about −41% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Synopsys Inc right now?
The price sits above even our optimistic bull case ($460.73). The favourable scenario is already priced in. Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range ($203.06 to $460.73) leaves room in how you read the outcome.
Where does the earnings growth of Synopsys Inc (SNPS) come from?
Earnings per share at Synopsys Inc grew +22.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.8 %, EBIT margin +5.0 %, tax rate +1.2 %, residual (interest, one-offs) +3.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Synopsys Inc
How large is the market capitalisation of Synopsys Inc (SNPS)?
The market capitalisation of Synopsys Inc is $92.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Synopsys Inc (SNPS)?
The price-to-sales ratio of Synopsys Inc is 15.8 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Synopsys Inc (SNPS)?
Earnings per share at Synopsys Inc are $5.74 (price ÷ EPS = P/E 83.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Synopsys Inc (SNPS)?
The net margin of Synopsys Inc is 18.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Synopsys Inc (SNPS)?
The return on equity (ROE) of Synopsys Inc is 3.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Synopsys Inc (SNPS)?
On an EBIT basis the return on assets of Synopsys Inc is 9.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Synopsys Inc (SNPS)?
The operating margin of Synopsys Inc is 14.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Synopsys Inc (SNPS)?
Revenue at Synopsys Inc is growing +42.4% versus a year earlier (3y avg +15.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Synopsys Inc (SNPS)?
Earnings per share at Synopsys Inc are growing +89.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Synopsys Inc (SNPS) carry?
The net debt of Synopsys Inc is $11.4B (fiscal year 2025, ≈ 8.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Oct 8, 2026