Synopsys, Inc. (SNPS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-52.9%

$221.67

vs $470.84 price

Levered DCF

$271.60

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.94

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	55.82×	34.75×	58.1×	45.43×	66.5×	48.6×	38.24×	30.87×
P/B	2.57×	8.75×	11.62×	8.12×	9.51×	6.59×	4.98×	3.84×
P/S	10.3×	12.84×	13.43×	9.7×	11.98×	8.77×	6.05×	4.28×
EV / EBITDA	33.63×	40.87×	45.44×	32.99×	48.98×	37.21×	26.03×	22.25×
Gross margin	77.0%	79.7%	80.6%	80.5%	79.5%	78.4%	77.6%	76.4%
Operating margin	13.0%	22.1%	23.9%	24.9%	17.5%	16.8%	15.5%	11.5%
Net margin	18.9%	36.9%	23.1%	21.3%	18.0%	18.0%	15.8%	13.9%
Current ratio	1.62×	2.44×	1.15×	1.09×	1.16×	1.19×	0.99×	0.73×
Debt / equity	0.5×	0.08×	0.11×	0.12×	0.13×	0.14×	0.03×	0.13×
Interest coverage	2.05×	36.81×	471.05×	676.51×	218.36×	120.65×	44.62×	23.08×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.7%	25.2%	20.0%	17.9%	14.3%	13.5%	13.0%	12.4%
Return on invested capital	2.0%	12.0%	16.0%	15.0%	10.6%	10.4%	10.9%	8.2%
Return on assets	2.8%	17.3%	11.9%	10.5%	8.7%	8.3%	8.3%	7.0%
Free cash flow yield	1.9%	1.6%	2.1%	3.6%	2.8%	2.6%	2.9%	2.4%
Earnings yield	1.8%	2.9%	1.7%	2.2%	1.5%	2.1%	2.6%	3.2%
Enterprise value	$84.1B	$75.4B	$70.7B	$44B	$49.6B	$31.7B	$19.8B	$13.1B
Net debt / EBITDA	4.56×	-1.74×	-0.49×	-0.57×	-0.76×	-0.67×	-0.78×	-0.43×
Cash conversion cycle (days)	123	101	119	134	135	155	119	83