SNPS Relative Valuation
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. If the market price exceeds this fair value range, SNPS is overvalued; if below, it's undervalued.
Historical Valuation
Synopsys Inc (SNPS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 36.03 is considered Undervalued compared with the five-year average of 37.16. The fair price of Synopsys Inc (SNPS) is between 525.61 to 621.01 according to relative valuation methord. Compared to the current price of 466.76 USD , Synopsys Inc is Undervalued By 11.2%.
Relative Value
Fair Zone
525.61-621.01
Current Price：466.76
11.2%
Undervalued
36.03
PE
1Y
3Y
5Y
Trailing
Forward
24.12
EV/EBITDA
Synopsys Inc. (SNPS) has a current EV/EBITDA of 24.12. The 5-year average EV/EBITDA is 27.09. The thresholds are as follows: Strongly Undervalued below 20.55, Undervalued between 20.55 and 23.82, Fairly Valued between 30.36 and 23.82, Overvalued between 30.36 and 33.62, and Strongly Overvalued above 33.62. The current Forward EV/EBITDA of 24.12 falls within the Historic Trend Line -Fairly Valued range.
28.23
EV/EBIT
Synopsys Inc. (SNPS) has a current EV/EBIT of 28.23. The 5-year average EV/EBIT is 29.27. The thresholds are as follows: Strongly Undervalued below 21.64, Undervalued between 21.64 and 25.46, Fairly Valued between 33.08 and 25.46, Overvalued between 33.08 and 36.90, and Strongly Overvalued above 36.90. The current Forward EV/EBIT of 28.23 falls within the Historic Trend Line -Fairly Valued range.
9.47
PS
Synopsys Inc. (SNPS) has a current PS of 9.47. The 5-year average PS is 10.51. The thresholds are as follows: Strongly Undervalued below 7.31, Undervalued between 7.31 and 8.91, Fairly Valued between 12.11 and 8.91, Overvalued between 12.11 and 13.70, and Strongly Overvalued above 13.70. The current Forward PS of 9.47 falls within the Historic Trend Line -Fairly Valued range.
35.88
P/OCF
Synopsys Inc. (SNPS) has a current P/OCF of 35.88. The 5-year average P/OCF is 36.29. The thresholds are as follows: Strongly Undervalued below 16.99, Undervalued between 16.99 and 26.64, Fairly Valued between 45.95 and 26.64, Overvalued between 45.95 and 55.60, and Strongly Overvalued above 55.60. The current Forward P/OCF of 35.88 falls within the Historic Trend Line -Fairly Valued range.
38.60
P/FCF
Synopsys Inc. (SNPS) has a current P/FCF of 38.60. The 5-year average P/FCF is 40.30. The thresholds are as follows: Strongly Undervalued below 15.85, Undervalued between 15.85 and 28.08, Fairly Valued between 52.53 and 28.08, Overvalued between 52.53 and 64.76, and Strongly Overvalued above 64.76. The current Forward P/FCF of 38.60 falls within the Historic Trend Line -Fairly Valued range.
Synopsys Inc (SNPS) has a current Price-to-Book (P/B) ratio of 3.13. Compared to its 3-year average P/B ratio of 9.73 , the current P/B ratio is approximately -67.77% higher. Relative to its 5-year average P/B ratio of 9.30, the current P/B ratio is about -66.29% higher. Synopsys Inc (SNPS) has a Forward Free Cash Flow (FCF) yield of approximately 1.46%. Compared to its 3-year average FCF yield of 1.83%, the current FCF yield is approximately -19.85% lower. Relative to its 5-year average FCF yield of 2.25% , the current FCF yield is about -34.99% lower.
3.13
P/B
Median3y
9.73
Median5y
9.30
1.46
FCF Yield
Median3y
1.83
Median5y
2.25
Competitors Valuation Multiple
The average P/S ratio for SNPS's competitors is 9.26, providing a benchmark for relative valuation. Synopsys Inc Corp (SNPS) exhibits a P/S ratio of 9.47, which is 2.26% above the industry average. Given its robust revenue growth of 14.03%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SNPS decreased by 3.83% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 47.83 to 63.06.
The secondary factor is the Revenue Growth, contributed 14.03%to the performance.
Overall, the performance of SNPS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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