Synopsys Inc (SNPS) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Synopsys Inc stock (SNPS) is currently trading at $428.25. Synopsys Inc PE ratio is 65.34. Synopsys Inc PS ratio (Price-to-Sales) is 10.27. Analyst consensus price target for SNPS is $537.75. WallStSmart rates SNPS as Underperform.
- SNPS PE ratio analysis and historical PE chart
- SNPS PS ratio (Price-to-Sales) history and trend
- SNPS intrinsic value — DCF, Graham Number, EPV models
- SNPS stock price prediction 2025 2026 2027 2028 2029 2030
- SNPS fair value vs current price
- SNPS insider transactions and insider buying
- Is SNPS undervalued or overvalued?
- Synopsys Inc financial analysis — revenue, earnings, cash flow
- SNPS Piotroski F-Score and Altman Z-Score
- SNPS analyst price target and Smart Rating
Synopsys Inc
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SNPS Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Synopsys Inc (SNPS)
SNPS trades 858% above its Graham fair value of $44.68, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Synopsys Inc (SNPS) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, revenue growth, institutional own.. Concerns around return on equity and price/sales. Fundamentals are solid but monitor weak areas for improvement.
Synopsys Inc (SNPS) Key Strengths (3)
Revenue surging 65.50% year-over-year
91.14% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Synopsys Inc (SNPS) Areas to Watch (7)
Earnings declining -82.00%, profits shrinking
Very expensive at 10.3x annual revenue
Low profitability relative to shareholder equity
Paying a premium for growth, expensive relative to earnings expansion
Thin operating margins with cost pressures present
Fairly priced relative to book value
Decent profitability, keeps $14 per $100 revenue
Supporting Valuation Data
Synopsys Inc (SNPS) Detailed Analysis Report
Overall Assessment
This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 3.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Revenue Growth, Institutional Own., Market Cap. Growth metrics are encouraging with Revenue Growth at 65.50%.
The Bear Case
The primary concerns are EPS Growth, Price/Sales, Return on Equity. Some valuation metrics including PEG Ratio (2.81), Price/Sales (10.27), Price/Book (2.67) suggest expensive pricing. Growth concerns include EPS Growth at -82.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 5.54%, Operating Margin at 13.30%, Profit Margin at 13.80%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 5.54% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 65.50% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Revenue Growth, Institutional Own.) and negatives (EPS Growth, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
Compare SNPS with Competitors
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Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Synopsys Inc (SNPS) · TECHNOLOGY › SOFTWARE - INFRASTRUCTURE
The Big Picture
Synopsys Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 8.0B with 66% growth year-over-year. Profit margins of 13.8% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 66% YoY, reaching 8.0B. This pace significantly outperforms most SOFTWARE - INFRASTRUCTURE peers.
ROE of 554.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Earnings fell 82% YoY while revenue grew 66%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Synopsys Inc push profit margins above 15% as the business scales?
Growth sustainability: can Synopsys Inc maintain 66%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 65.3x. Any growth miss could trigger a sharp correction.
Debt management: total debt of 14.3B is significantly higher than cash (2.9B). Monitor refinancing risk.
Bottom Line
Synopsys Inc offers an attractive blend of growth (66% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(26 last 3 months)
| Insider | Type | Shares |
|---|---|---|
LEE, JANET GC & Corporate Secretary | Sell | -250 |
| Insider | Type | Shares |
|---|---|---|
LEE, JANET GC & Corporate Secretary | Sell | -250 |
Data sourced from SEC Form 4 filings
Last updated: 6:07:31 PM
About Synopsys Inc(SNPS)
NASDAQ
TECHNOLOGY
SOFTWARE - INFRASTRUCTURE
USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.