SNPS
Synopsys
$464.58
▲ 2.0%Updated Today 7:15 PM ET
▼ Down 3.8% over the last 12 months
Market Cap
$87.22B
P/E
112.5x
Forward P/E (est.)
160.71x
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
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 $464.58, around its 50-day average ($479.26) and 200-day average ($459.47). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
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 42 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 $20.61 (~4.4% 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 $444.82 (support) and sellers near $539.48 (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 1.5× the 20-day average — heavier than usual, which adds conviction to the move. 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.
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 $87.22B.
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.
4Y CAGR
13.8%
Revenue moved from $4.20B in 2021 to $7.05B in 2025, a 13.8% 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
112.5x
P/S
12.14x
P/B
3.03x
EV / EBITDA
59.34x
SNPS trades at 112.5x trailing earnings (about 160.7x on estimated forward earnings), 12.1x sales, and 3.0x 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.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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 (72 S&P 500 companies), SNPS ranks #68 of 72 by our overall rating. It trades at a premium versus the sector on earnings (112.5x P/E vs. 35.6x median) with a lower return on equity (2.6% vs. 25.6%) and faster revenue growth (39.5% vs. 17.4%).
P/E vs sector
112.5x
median 35.6x
ROE vs sector
2.6%
median 25.6%
Growth vs sector
39.5%
median 17.4%
Sector rank
#68
of 72 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 72 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)
$2,522.28 – $4,216.35
vs. $464.58 today · expected CAGR 40% – 55%
| 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 | $9.80 | $13.72 | $19.21 | $26.89 | $37.65 |
| Share price (low) | $656.57 | $919.20 | $1,286.88 | $1,801.63 | $2,522.28 |
| Share price (high) | $1,097.55 | $1,536.57 | $2,151.20 | $3,011.68 | $4,216.35 |
| CAGR (low–high) | 41% / 136% | 41% / 82% | 40% / 67% | 40% / 60% | 40% / 55% |
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 112.5x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (38/100).
Valuation risk — at 112.5x 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 112.5x earnings, which our model scores Weak (38/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
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.