SNPS Valuation

Synopsys Inc

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603.520

-8.65(-1.413%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 38.57 is considered Fairly compared with the five-year average of 36.93. The fair price of Synopsys Inc (SNPS) is between 598.25 to 707.03 according to relative valuation methord.

Relative Value

Fair Zone

598.25-707.03

Current Price：603.52

Fair

38.57

Trailing

Forward

25.09

EV/EBITDA

Synopsys Inc. (SNPS) has a current EV/EBITDA of 25.09. The 5-year average EV/EBITDA is 27.13. The thresholds are as follows: Strongly Undervalued below 20.77, Undervalued between 20.77 and 23.95, Fairly Valued between 30.30 and 23.95, Overvalued between 30.30 and 33.48, and Strongly Overvalued above 33.48. The current Forward EV/EBITDA of 25.09 falls within the Historic Trend Line -Fairly Valued range.

27.38

EV/EBIT

Synopsys Inc. (SNPS) has a current EV/EBIT of 27.38. The 5-year average EV/EBIT is 29.26. The thresholds are as follows: Strongly Undervalued below 21.72, Undervalued between 21.72 and 25.49, Fairly Valued between 33.03 and 25.49, Overvalued between 33.03 and 36.80, and Strongly Overvalued above 36.80. The current Forward EV/EBIT of 27.38 falls within the Historic Trend Line -Fairly Valued range.

11.92

Synopsys Inc. (SNPS) has a current PS of 11.92. The 5-year average PS is 10.46. The thresholds are as follows: Strongly Undervalued below 7.19, Undervalued between 7.19 and 8.82, Fairly Valued between 12.10 and 8.82, Overvalued between 12.10 and 13.74, and Strongly Overvalued above 13.74. The current Forward PS of 11.92 falls within the Historic Trend Line -Fairly Valued range.

52.34

P/OCF

Synopsys Inc. (SNPS) has a current P/OCF of 52.34. The 5-year average P/OCF is 36.33. The thresholds are as follows: Strongly Undervalued below 16.74, Undervalued between 16.74 and 26.54, Fairly Valued between 46.12 and 26.54, Overvalued between 46.12 and 55.92, and Strongly Overvalued above 55.92. The current Forward P/OCF of 52.34 falls within the Overvalued range.

58.06

P/FCF

Synopsys Inc. (SNPS) has a current P/FCF of 58.06. The 5-year average P/FCF is 40.25. The thresholds are as follows: Strongly Undervalued below 15.48, Undervalued between 15.48 and 27.86, Fairly Valued between 52.64 and 27.86, Overvalued between 52.64 and 65.03, and Strongly Overvalued above 65.03. The current Forward P/FCF of 58.06 falls within the Overvalued range.

Synopsys Inc (SNPS) has a current Price-to-Book (P/B) ratio of 9.44. Compared to its 3-year average P/B ratio of 10.38 , the current P/B ratio is approximately -9.00% higher. Relative to its 5-year average P/B ratio of 9.61, the current P/B ratio is about -1.71% higher. Synopsys Inc (SNPS) has a Forward Free Cash Flow (FCF) yield of approximately 0.97%. Compared to its 3-year average FCF yield of 1.99%, the current FCF yield is approximately -51.06% lower. Relative to its 5-year average FCF yield of 2.30% , the current FCF yield is about -57.73% lower.

9.44

P/B

Median3y

10.38

Median5y

9.61

0.97

FCF Yield

Median3y

1.99

Median5y

2.30

Competitors Valuation Multiple

The average P/S ratio for SNPS's competitors is 13.36, providing a benchmark for relative valuation. Synopsys Inc Corp (SNPS) exhibits a P/S ratio of 11.92, which is -10.79% above the industry average. Given its robust revenue growth of 10.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CrowdStrike Holdings Inc

Automatic Data Processing Inc

Palo Alto Networks Inc

Cadence Design Systems Inc

Performance Decomposition

Market capitalization of SNPS increased by 19.18% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.45B to 1.60B.

The secondary factor is the Margin Expansion, contributed 6.93%to the performance.

Overall, the performance of SNPS in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.28%

1.45B → 1.60B

Revenue Growth

6.93%

20.35 → 21.76

Margin Expansion

1.97%

68.42 → 69.77

P/E Change

19.18%