Information Technology · Application Software · US stock · price as of 16 Oct 2026
Key indicators
Price
$454.63
52-week range
$362.55 – $539.48
Market cap
$87.4B
P/E (trailing)
78.2×
EV / EBITDA
35.9×
Free-cash-flow yield
3.1%
Dividend yield
–
Revenue (last 12 months)
$9.4B
Revenue growth (3y a year)
11.6%
Operating margin
8.5%
Return on invested capital
1.7%
Net debt / EBITDA
2.8×
Fair value
Blended fair value$159.87 range $160 – $160
Versus priceOvervalued−65% to fair value
Peer multiples
$191.30
Fundamentals-adjusted multiple
$128.45
10-year DCF (market-scaled)
$15.54
Earnings power value (floor, not blended)
$37.92
Model uncertainty
Medium
X-Ray Score
26/ 100 · High confidence · ahead of 1% of sector peers
Valuation25
Growth45
Profitability21
Financial health16
Dividends–
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Chip designers rely on software and intellectual property from Synopsys to design electronic chips and systems. Its tools cover chip design and verification, and it licenses ready-made design blocks, such as interface and memory components, that chipmakers reuse in their products. Through its combination with Ansys, it also offers engineering simulation software. Customers include semiconductor companies, electronics makers, cloud operators and carmakers.
Software licences and subscriptions, recurring maintenance and the licensing of design blocks generated revenue of $9.4 billion over the last twelve months. Revenue has grown at 11.6% a year across the last three years. The operating margin is 8.5%, the business earns 2% on the capital invested in it, and net debt is 2.8 times EBITDA. No dividend is paid.
StocksXray gives Synopsys Inc an X-Ray Score of 26 out of 100 (high confidence), ahead of 1% of the S&P 500 stocks in its sector. Its strongest lens is growth (45) and its weakest is financial health (16).
Our fair value blend is $159.87 (range $159.87 to $159.87). At $454.63 the stock trades 184% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Synopsys Inc (SNPS)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$333.18
$292.55
$469.44
$513.61
$453.82
$454.63
Market cap
$52.4B
$45.8B
$72.9B
$80.1B
$75.2B
$87.4B
P/E
69.3×
46.5×
59.3×
35.4×
56.4×
78.2×
EV / revenue
12.1×
8.7×
13.4×
12.4×
12.1×
10.0×
EV / EBITDA
54.4×
32.1×
46.9×
46.1×
54.4×
35.9×
Price / free cash flow
37.5×
28.6×
48.1×
63.2×
55.7×
31.8×
Free-cash-flow yield
2.7%
3.5%
2.1%
1.6%
1.8%
3.1%
Price / book
9.9×
8.3×
11.9×
8.9×
2.7×
2.8×
Dividend yield
–
–
–
–
–
–
Fundamentals checklist ● 0 Good · ● 7 Average · ● 9 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−3.9%Average
Free-cash-flow yield3.1%Average
Risk models
Altman Z score3.1×Average
Piotroski F-Score3 of 9Bad
Growth
EPS growth (3y)8.5%Average
Free-cash-flow growth (3y)−5.6%Bad
Revenue growth (3y)11.6%Average
Growth consistency90%Average
Balance sheet
Current ratio1.3×Average
Net debt / EBITDA2.8×Bad
Interest cover1.3×Bad
Valuation
Fair value vs price0.4×Bad
EBIT / EV yield0.8%Bad
Profitability
Return on invested capital1.7%Bad
Operating margin8.5%Bad
Gross profitability14.3%Bad
Red flags
Heavy dilution — Share count up more than 5% year on year
XStocksXray
Synopsys Inc (SNPS)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
4,204
5,082
5,318
6,127
7,054
9,416
Gross profit
3,342
3,718
4,287
4,882
5,431
6,815
Operating income
735
1,149
1,273
1,356
915
802
Net income
758
985
1,230
2,263
1,332
1,077
Diluted EPS ($)
4.81
6.29
7.92
14.51
8.04
5.81
Free cash flow
1,399
1,602
1,514
1,268
1,349
2,748
Gross margin
79.5%
73.2%
80.6%
79.7%
77.0%
72.4%
Operating margin
17.5%
22.6%
23.9%
22.1%
13.0%
8.5%
Net margin
18.0%
19.4%
23.1%
36.9%
18.9%
11.4%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
8,752
9,418
10,333
13,074
48,224
47,726
Cash
1,433
1,418
1,434
3,897
2,888
3,606
Total debt
175
21
18
16
13,485
10,037
Equity
5,295
5,516
6,147
8,991
28,328
31,153
Dividend per share ($)
–
–
–
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.