Historical Valuation
Synopsys Inc (SNPS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 33.39 is considered Undervalued compared with the five-year average of 37.04. The fair price of Synopsys Inc (SNPS) is between 637.20 to 753.88 according to relative valuation methord. Compared to the current price of 515.68 USD , Synopsys Inc is Undervalued By 19.07%.
Relative Value
Fair Zone
637.20-753.88
Current Price:515.68
19.07%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Synopsys Inc (SNPS) has a current Price-to-Book (P/B) ratio of 3.15. Compared to its 3-year average P/B ratio of 9.58 , the current P/B ratio is approximately -67.08% higher. Relative to its 5-year average P/B ratio of 9.24, the current P/B ratio is about -65.84% higher. Synopsys Inc (SNPS) has a Forward Free Cash Flow (FCF) yield of approximately 1.47%. Compared to its 3-year average FCF yield of 1.78%, the current FCF yield is approximately -17.74% lower. Relative to its 5-year average FCF yield of 2.24% , the current FCF yield is about -34.57% lower.
P/B
Median3y
9.58
Median5y
9.24
FCF Yield
Median3y
1.78
Median5y
2.24
Competitors Valuation Multiple
AI Analysis for SNPS
The average P/S ratio for SNPS competitors is 10.89, providing a benchmark for relative valuation. Synopsys Inc Corp (SNPS.O) exhibits a P/S ratio of 9.54, which is -12.44% above the industry average. Given its robust revenue growth of 37.83%, this premium appears sustainable.
Performance Decomposition
AI Analysis for SNPS
1Y
3Y
5Y
Market capitalization of SNPS increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of SNPS in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is SNPS currently overvalued or undervalued?
Synopsys Inc (SNPS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 33.39 is considered Undervalued compared with the five-year average of 37.04. The fair price of Synopsys Inc (SNPS) is between 637.20 to 753.88 according to relative valuation methord. Compared to the current price of 515.68 USD , Synopsys Inc is Undervalued By 19.07% .
What is Synopsys Inc (SNPS) fair value?
SNPS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Synopsys Inc (SNPS) is between 637.20 to 753.88 according to relative valuation methord.
How does SNPS's valuation metrics compare to the industry average?
The average P/S ratio for SNPS's competitors is 10.89, providing a benchmark for relative valuation. Synopsys Inc Corp (SNPS) exhibits a P/S ratio of 9.54, which is -12.44% above the industry average. Given its robust revenue growth of 37.83%, this premium appears sustainable.
What is the current P/B ratio for Synopsys Inc (SNPS) as of Jan 09 2026?
As of Jan 09 2026, Synopsys Inc (SNPS) has a P/B ratio of 3.15. This indicates that the market values SNPS at 3.15 times its book value.
What is the current FCF Yield for Synopsys Inc (SNPS) as of Jan 09 2026?
As of Jan 09 2026, Synopsys Inc (SNPS) has a FCF Yield of 1.47%. This means that for every dollar of Synopsys Inc’s market capitalization, the company generates 1.47 cents in free cash flow.
What is the current Forward P/E ratio for Synopsys Inc (SNPS) as of Jan 09 2026?
As of Jan 09 2026, Synopsys Inc (SNPS) has a Forward P/E ratio of 33.39. This means the market is willing to pay $33.39 for every dollar of Synopsys Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Synopsys Inc (SNPS) as of Jan 09 2026?
As of Jan 09 2026, Synopsys Inc (SNPS) has a Forward P/S ratio of 9.54. This means the market is valuing SNPS at $9.54 for every dollar of expected revenue over the next 12 months.