SNPS
Synopsys
$412.85
▲ 1.7%Updated Aug 7, 11:30 AM ET
SNPS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 38/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 3.8% over the last 12 months
Market Cap
$83.71B
P/E
101.96x
Forward P/E (est.)
145.66x
ROE
2.6%
Revenue Growth
39.5%
EPS Growth
-68.8%
Profit Margin
8.9%
FCF Yield
1.8%
Debt / Equity
0.48x
ROIC
2.0%
Interest Coverage
776.68x
Current Ratio
1.43x
Dividend Yield
—
Implied Growth (rev. DCF)
7.3%
Rating Score
38/100
Synopsys (SNPS) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $83.71B.
In its latest reported year it generated about $7.05B in revenue and $1.33B in net profit.
Our model rates SNPS Weak (38/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
79.1% average over the last 3 years
±1.7 pts around 78.4% across 9 years
grew in 8 of the last 8 year-over-year periods
positive in 9 of 9 years
2.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SNPS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SNPS trades near $412.85, below its 50-day average ($483.12) and 200-day average ($456.51). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 39 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. SNPS's is $16.98 (~4.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month SNPS found buyers near $434.25 (support) and sellers near $500.35 (resistance); its 52-week range is $376.18–$651.73. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
13.8%
Revenue moved from $2.72B in 2017 to $7.05B in 2025, a 12.6% compound annual growth rate. The most recent year grew a strong 39.5% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
77.0%
Operating Margin
13.0%
Net Margin
18.9%
ROE
2.6%
Synopsys keeps about 8.9% of each sales dollar as net profit, with a 77.0% gross margin and 13.0% operating margin. Return on equity is 2.6% and return on invested capital about 2.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$10.04B
Net Debt
$7.62B
Net Debt / EBITDA
8.33x
Debt / Equity
0.48x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 776.7x, with a current ratio of 1.4x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $10.04B of total debt against $2.41B of cash.
Operating CF
$1.52B
Free Cash Flow
$1.35B
FCF Margin
19.1%
In the latest year Synopsys produced about $1.52B of operating cash flow and $1.35B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
101.96x
P/S
12.14x
P/B
2.74x
EV / EBITDA
—
SNPS trades at 102.0x trailing earnings (about 145.7x on estimated forward earnings), 12.1x sales, and 2.7x book value. Reverse-engineering today's price implies the market expects roughly 7.3% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$291.78
Current price
$412.85
Starting FCF (latest 10-K)
$1.35B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where SNPS sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How SNPS stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), SNPS ranks #86 of 230 by our overall rating. It trades at a premium versus the sector on earnings (102x P/E vs. 38.9x median) with a lower return on equity (2.6% vs. 17.5%) and faster revenue growth (39.5% vs. 17.7%).
P/E vs sector
102x
median 38.9x
ROE vs sector
2.6%
median 17.5%
Growth vs sector
39.5%
median 17.7%
Sector rank
#86
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $412.85 today · expected CAGR 39% – 54%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.88B | $13.83B | $19.36B | $27.10B | $37.94B |
| Net income | $1.88B | $2.63B | $3.68B | $5.15B | $7.21B |
| EPS | $9.25 | $12.96 | $18.14 | $25.39 | $35.55 |
| Share price (low) | $564.53 | $790.34 | $1,106.48 | $1,549.07 | $2,168.70 |
| Share price (high) | $943.97 | $1,321.56 | $1,850.18 | $2,590.25 | $3,626.36 |
| CAGR (low–high) | 37% / 129% | 38% / 79% | 39% / 65% | 39% / 58% | 39% / 54% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for SNPS:
- Revenue is growing 39.5% a year, a sign of real demand.
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
The case against SNPS:
- A rich 102.0x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (38/100).
Valuation risk — at 102.0x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Synopsys is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 102.0x earnings, which our model scores Weak (38/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 32 Wall Street analysts covering SNPS recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+7 pts of buy ratings).
Latest SEC Filings
SNPS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
SNPS — frequently asked questions
Is SNPS a good stock to buy?
We don't give buy or sell advice. Our model rates Synopsys Weak (38/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is SNPS's rating on The Stocks School?
Synopsys currently scores 38/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does SNPS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Synopsys's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for SNPS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this SNPS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SNPS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.