Valuation dashboard for Synopsys, Inc. (SNPS) with P/E 81.76, P/B 2.88, EV/EBITDA 25.9 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform.
What would it be worth at its usual multiples?
Versus its usual multiples: expensive · Current P/E 81.8× · Multiples range: $180.15 · $320.04.
At the decade median (56.0×) $320 (-32 %); at its sector median (31.5×) $180 (-61 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Why is Synopsys, Inc.'s P/E so low?
Synopsys, Inc. trades at a P/E of 81.8× on reported earnings, but over the last 12 months 29 % of its pre-tax income ($381M) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 116×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended July 31, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| October 31, 2025 | $121M | $395M | $449M |
| January 31, 2026 | $203M | −$124M | $64.7M |
| April 30, 2026 | $236M | −$217M | $17.1M |
| July 31, 2026 | $357M | $326M | $546M |
Analysis Summary
Synopsys, Inc. reported revenue of $7.05B in the most recent fiscal year, growing at a 5-year CAGR of 13.9%. Net income reached $1.33B, with a 14.9% 5-year CAGR.
Trailing-twelve-month margins: gross margin 72.4%, operating margin 9.8%, net margin 11.4%.
At $467.61 (closing price, October 30, 2026), SNPS trades at a P/E of 81.76 and an ROE of 3.57%. Market capitalisation stands at $89.6B, placing it among large-cap names.
Balance sheet quality for SNPS: debt-to-equity ratio of 0.35, current ratio of 1.34 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 81.76 |
| Price / Book | 2.88 |
| EV / EBITDA | 25.9 |
| Dividend Yield | 0.00% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| SNPS | Synopsys, Inc. | $89.6B | 81.76 | 2.88 | 3.6% |
| ARM | Arm Holdings plc American Depositary Shares | $216.8B | 212.34 | 25.44 | 13.0% |
| CDNS | Cadence Design Systems, Inc. | $90.0B | 65.19 | 13.06 | 21.4% |
| MSFT | Microsoft Corporation | $3.9T | 27.25 | 8.24 | 33.2% |
| PLTR | Palantir Technologies Inc. | $423.6B | 156.03 | 45.15 | 37.5% |
| ORCL | Oracle Corporation | $395.1B | 20.48 | 5.80 | 42.6% |
| PANW | Palo Alto Networks, Inc. | $299.3B | 831.52 | 9.97 | 1.7% |
| 0KF5.L | Palo Alto Networks, Inc. | $288.9B | 827.28 | 10.37 | 1.7% |
Price
| Price | $467.61 (closing price, October 30, 2026) |
| Market Cap | $89.6B |
| Exchange | NASDAQ |
| Country | US |
Profitability
| Return on Equity | 3.57% |
| Return on Invested Capital | 1.73% |
| Return on Assets | 2.26% |
| Gross Margin | 72.38% |
| Operating Margin | 9.75% |
| Net Margin | 11.43% |
Related companies: ARM · CDNS · MSFT · PLTR · ORCL · PANW · 0KF5.L · CRWD
Explore sector: Technology · Software - Infrastructure
More sections of SNPS: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
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