(SNPS) Synopsys - Ratings and Ratios
EDA Software, Verification Tools, IP Cores, FPGA
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 41.6% |
| Value at Risk 5%th | 61.4% |
| Relative Tail Risk | -10.38% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.09 |
| Alpha | -35.27 |
| CAGR/Max DD | 0.32 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.557 |
| Beta | 1.366 |
| Beta Downside | 1.261 |
| Drawdowns 3y | |
|---|---|
| Max DD | 40.53% |
| Mean DD | 11.38% |
| Median DD | 7.04% |
Description: SNPS Synopsys December 02, 2025
Synopsys Inc. (NASDAQ: SNPS) delivers electronic design automation (EDA) software that enables the design, verification, and testing of integrated circuits, operating through two primary segments: Design Automation and Design IP. Its portfolio spans digital and custom IC design tools, verification suites (including virtual prototyping, static/formal verification, simulation, emulation, and FPGA-based prototyping), TCAD and mask synthesis, as well as AI-enhanced EDA solutions. The company also licenses a broad suite of IP blocks-ranging from UCIe, USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and automotive-grade security IP to processor cores, embedded memories, and Arm AMBA interconnects-supporting system-on-chip (SoC) development across diverse markets.
Key recent metrics underscore Synopsys’ market position: FY 2024 revenue reached approximately $5.6 billion, with a GAAP earnings-per-share of about $5.00, and R&D expenditures representing roughly 30 % of revenue-reflecting its commitment to innovation in advanced-node design and AI-driven verification. The company benefits from the broader semiconductor cycle, where rising demand for high-performance compute, automotive electronics, and 5G infrastructure fuels growth in EDA spend, while its expanding AI-EDA offerings address the industry’s need for faster time-to-market on increasingly complex chips.
For a deeper quantitative view, consider exploring ValueRay’s analyst toolkit to complement your assessment of Synopsys’ valuation and growth outlook.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income (2.00b TTM) > 0 and > 6% of Revenue (6% = 385.8m TTM) |
| FCFTA 0.03 (>2.0%) and ΔFCFTA -5.87pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 33.46% (prev 43.51%; Δ -10.05pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.03 (>3.0%) and CFO 1.44b <= Net Income 2.00b (YES >=105%, WARN >=100%) |
| Net Debt (12.61b) to EBITDA (1.84b) ratio: 6.84 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.62 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (161.7m) change vs 12m ago 3.56% (target <= -2.0% for YES) |
| Gross Margin 77.74% (prev 77.35%; Δ 0.39pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 21.48% (prev 51.16%; Δ -29.68pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.50 (EBITDA TTM 1.84b / Interest Expense TTM 266.4m) >= 6 (WARN >= 3) |
Altman Z'' 1.78
| (A) 0.04 = (Total Current Assets 5.60b - Total Current Liabilities 3.44b) / Total Assets 48.23b |
| (B) 0.20 = Retained Earnings (Balance) 9.87b / Total Assets 48.23b |
| (C) 0.05 = EBIT TTM 1.47b / Avg Total Assets 29.94b |
| (D) 0.47 = Book Value of Equity 9.64b / Total Liabilities 20.62b |
| Total Rating: 1.78 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 61.65
| 1. Piotroski 3.50pt |
| 2. FCF Yield 1.44% |
| 3. FCF Margin 20.25% |
| 4. Debt/Equity 0.55 |
| 5. Debt/Ebitda 6.84 |
| 6. ROIC - WACC (= -0.10)% |
| 7. RoE 14.31% |
| 8. Rev. Trend 93.18% |
| 9. EPS Trend -10.88% |
What is the price of SNPS shares?
Over the past week, the price has changed by +13.85%, over one month by +4.65%, over three months by -21.23% and over the past year by -18.20%.
Is SNPS a buy, sell or hold?
- Strong Buy: 15
- Buy: 4
- Hold: 3
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the SNPS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 551 | 18.1% |
| Analysts Target Price | 551 | 18.1% |
| ValueRay Target Price | 463.2 | -0.7% |
SNPS Fundamental Data Overview December 02, 2025
P/E Trailing = 56.4878
P/E Forward = 28.2486
P/S = 12.0654
P/B = 2.8117
P/EG = 5.481
Beta = 1.146
Revenue TTM = 6.43b USD
EBIT TTM = 1.47b USD
EBITDA TTM = 1.84b USD
Long Term Debt = 14.32b USD (from longTermDebt, last quarter)
Short Term Debt = 149.6m USD (from shortTermDebt, last quarter)
Debt = 15.14b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 12.61b USD (from netDebt column, last quarter)
Enterprise Value = 90.19b USD (77.64b + Debt 15.14b - CCE 2.59b)
Interest Coverage Ratio = 5.50 (Ebit TTM 1.47b / Interest Expense TTM 266.4m)
FCF Yield = 1.44% (FCF TTM 1.30b / Enterprise Value 90.19b)
FCF Margin = 20.25% (FCF TTM 1.30b / Revenue TTM 6.43b)
Net Margin = 31.07% (Net Income TTM 2.00b / Revenue TTM 6.43b)
Gross Margin = 77.74% ((Revenue TTM 6.43b - Cost of Revenue TTM 1.43b) / Revenue TTM)
Gross Margin QoQ = 78.13% (prev 80.14%)
Tobins Q-Ratio = 1.87 (Enterprise Value 90.19b / Total Assets 48.23b)
Interest Expense / Debt = 0.97% (Interest Expense 146.5m / Debt 15.14b)
Taxrate = -27.98% (negative due to tax credits) (-53.0m / 189.3m)
NOPAT = 1.88b (EBIT 1.47b * (1 - -27.98%)) [negative tax rate / tax credits]
Current Ratio = 1.62 (Total Current Assets 5.60b / Total Current Liabilities 3.44b)
Debt / Equity = 0.55 (Debt 15.14b / totalStockholderEquity, last quarter 27.61b)
Debt / EBITDA = 6.84 (Net Debt 12.61b / EBITDA 1.84b)
Debt / FCF = 9.69 (Net Debt 12.61b / FCF TTM 1.30b)
Total Stockholder Equity = 13.96b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.14% (Net Income 2.00b / Total Assets 48.23b)
RoE = 14.31% (Net Income TTM 2.00b / Total Stockholder Equity 13.96b)
RoCE = 5.18% (EBIT 1.47b / Capital Employed (Equity 13.96b + L.T.Debt 14.32b))
RoIC = 9.35% (NOPAT 1.88b / Invested Capital 20.06b)
WACC = 9.45% (E(77.64b)/V(92.79b) * Re(11.05%) + D(15.14b)/V(92.79b) * Rd(0.97%) * (1-Tc(-0.28)))
Discount Rate = 11.05% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.18%
[DCF Debug] Terminal Value 67.63% ; FCFE base≈1.18b ; Y1≈1.15b ; Y5≈1.17b
Fair Price DCF = 70.57 (DCF Value 13.11b / Shares Outstanding 185.7m; 5y FCF grow -3.26% → 3.0% )
EPS Correlation: -10.88 | EPS CAGR: -44.61% | SUE: -4.0 | # QB: 0
Revenue Correlation: 93.18 | Revenue CAGR: 11.65% | SUE: -0.16 | # QB: 0
EPS next Quarter (2026-01-31): EPS=3.40 | Chg30d=+0.014 | Revisions Net=-5 | Analysts=16
EPS next Year (2026-10-31): EPS=14.10 | Chg30d=+0.016 | Revisions Net=-2 | Growth EPS=+9.8% | Growth Revenue=+37.0%
Additional Sources for SNPS Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle