Synopsys, Inc. (SNPS) Valuation — DCF, Graham & Comparables

Synopsys, Inc. (SNPS) — Price $467.61 (closing price, October 30, 2026) — Technology — Software - Infrastructure — NASDAQ

Latest reported results:

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 endedFrom the businessOutside the businessNet 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

Other companies with an inflated P/E

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 Ratio81.76
Price / Book2.88
EV / EBITDA25.9
Dividend Yield0.00%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
SNPSSynopsys, Inc.$89.6B81.762.883.6%
ARMArm Holdings plc American Depositary Shares$216.8B212.3425.4413.0%
CDNSCadence Design Systems, Inc.$90.0B65.1913.0621.4%
MSFTMicrosoft Corporation$3.9T27.258.2433.2%
PLTRPalantir Technologies Inc.$423.6B156.0345.1537.5%
ORCLOracle Corporation$395.1B20.485.8042.6%
PANWPalo Alto Networks, Inc.$299.3B831.529.971.7%
0KF5.LPalo Alto Networks, Inc.$288.9B827.2810.371.7%

Price

Price$467.61 (closing price, October 30, 2026)
Market Cap$89.6B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity3.57%
Return on Invested Capital1.73%
Return on Assets2.26%
Gross Margin72.38%
Operating Margin9.75%
Net Margin11.43%

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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