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Data-driven stock valuation

Synopsys, Inc (1SNPS) fair value: what the stock is really worth

We calculate from audited financials what Synopsys, Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.

  1. Compare price with fair valuebelow fair value = cheap, above = expensive
  2. Check the quality50 and up solid, 75 and up strong
  3. Watch it or check another stockalert when fair value or trend changes

Technology · IT · Market cap €74.6B · ISIN US8716071076

At a glance

SI Synopsys, Inc 1SNPS · MI
Price€340.00
Fair Value€90.31
Upside−73.4%
Quality38/100

Below-average quality, and trading another 277% above our fair value of €90.31.

As of Aug 21, 2026, the fair value of Synopsys, Inc is €90.31 per share against a price of €340.00, so the fair value sits 73% below the price. A model estimate from reported figures, not an analyst target.

Healthy Growth (revenue 3y +15.2 %/yr)
!Thin margins · 8.9% net margin
Low debt · generates free cash flow
!Narrow moat 34/100
Evidence: High Range €75.95 to €103.15

Fair value as of: Aug 21, 2026

From 22 valuation models · updated 19 days ago

Fair value updated Aug 21, 2026, revised from €93.61 to €90.31 (−3.5%) since Aug 13, 2026. Share price −4.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (€103.15). The favourable scenario is already priced in.
  • Weak quality (38/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (16 months)

€562.40 €323.50 Fair Value €90.31 Apr 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

16‑month range €323.50 – €562.40 · fair‑value band €75.95 – €103.15 · the €340.00 price screens above the €90.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Synopsys, Inc (1SNPS) currently trades at €340.00, while our model-based Fair Value estimate is €90.31, implying the stock looks roughly 276.5% overvalued today. The Quality Score stands at 38/100 (below-average quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of €183.82 per share, and 0 of the 22 models we run sit above the €340.00 price. Bear case: the Growth DCF group reads lowest at €47.61, and 22 of the 22 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Synopsys, Inc generated revenue of €8.7B at a net margin of 8.9%. Revenue grew 41.9% year over year. It earns a return on equity of 3.8%. Net debt stands at €10.6B. Fundamentals as of Aug 21, 2026

Scenario range: €75.95 (bear) to €103.15 (bull), the price of €340.00 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 40% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −32% fair-value upside, at −73%, 1SNPS screens richer than that median.

Fair Value models

Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (€3.29 per share) are deliberately not added.

Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €43.12 €131.38 €322.58 68
Growth DCF €40.88 €135.92 €283.31 68
Residual Income €112.47 €113.01 €106.25 68
All 22 models by family
DCF Models
FCF DCF €43.12 €131.38 €322.58 68
Owner Earnings €77.67 €208.77 €455.32 67
5Y Revenue Exit €5.32 €48.45 €107.54 61
5Y EBITDA Exit €47.69 €140.97 €263.25 67
5Y P/E Exit €70.71 €191.25 €336.76 64
10Y Revenue Exit €15.20 €62.03 €136.11 57
10Y EBITDA Exit €45.58 €132.13 €274.06 60
10Y P/E Exit €61.22 €170.22 €339.19 56
Earnings-Based
Graham-Dodd €47.31 €264.09 €366.71 61
Lynch FV €73.83 €105.48 €137.12 58
PEG = 1.0 €73.83 €105.48 €137.12 55
Multiples
P/E Multiple €146.11 €194.81 €243.51 63
P/S Multiple €88.71 €118.28 €147.85 58
P/B Multiple €88.71 €118.28 €147.85 55
EV/EBIT €30.78 €59.45 €88.12 63
EV/EBITDA €55.84 €92.87 €129.89 65
EV/Revenue n/a €6.89 €25.53 50
Asset-Based
NCAV (Graham) €73.97 €99.12 €147.94 54
Growth DCF
Growth DCF €40.88 €135.92 €283.31 68
Rev-Margin DCF €5.32 €47.61 €105.68 61
Economic Profit
Residual Income €112.47 €113.01 €106.25 68
Growth Earnings
Growth-Adj P/E €128.68 €183.82 €238.97 65

Widest divergence: Growth Earnings (€183.82) versus Growth DCF (€47.61). Highest evidence: FCF DCF (68).

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Key figures & financial health

P/E ratio 88.5
P/S ratio 16.7 P/E × margin
EPS (TTM) €3.84 price ÷ EPS = P/E 88.5
Net margin 18.9% FY2025
Return on equity 3.8% TTM
Return on assets (EBIT) 9.4% avg 4y
More key figures
Profitability
Operating margin 10.4% TTM
Growth
Revenue (TTM) €8.7B TTM
Revenue growth (YoY) +41.9% 3y avg +15.2%
EPS growth (YoY) −96.0%
Balance sheet & cash flow
Free cash flow €1.3B FY2025
Net debt €10.6B FY2025 · ≈ 7.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

Of which business quality 44 · Market factors (momentum, volatility) 15

Profitability 32
Margins and returns on capital today
Quality Growth 23
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 22
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 5
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP.

Full company description

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Synopsys, Inc reported revenue of $7.1B in FY2025 versus $4.6B in FY2022, a compound +15.2%/yr. Reported net income was $1.3B in FY2025, compounding +10.6%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€7.1B
Latest YoY
+15.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.2%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
−0.5%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−0.5%
Dividend yield0.0%
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25.1% (2022) → 13.0% (2025) · falling
Worst earnings drop51% (2025) · in EUR
Revenue +15.2%/yr
FY22 $4.6B
FY23 $5.3B
FY24 $6.1B
FY25 $7.1B
Net income +10.6%/yr
FY22 $985M
FY23 $1.2B
FY24 $2.3B
FY25 $1.3B

1SNPS screens 277% overvalued. Compare with Microsoft Corporation →

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Cite: Fair Value Calculator (2026). "Synopsys, Inc Fair Value". https://www.fairvalue-calculator.com/stock/1SNPS

What the price implies (reverse DCF)

The inverse question: what free-cash-flow growth must Synopsys, Inc deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.

Implied FCF growth, 10 years+20.9 % per year
Achieved revenue growth, 3 years+15.2 % p.a.
FCF yield on price2.13 %
Discount rate (WACC) in the models9.5 %

The price demands an acceleration versus past growth: a high bar the company still has to clear. Ranking of the largest stocks →

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

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Palo Alto Networks, Inc PANW $333.26 $36.50 −89%
Fortinet, Inc FTNT $156.29 $61.46 −61%
Block, Inc XYZ A$111.01 A$70.69 −36%
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Frequently asked questions

Is Synopsys, Inc (1SNPS) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of €90.31 versus a price of €340.00, about −73% upside (overvalued).
What is the fair value of 1SNPS?
Our model-based fair value for Synopsys, Inc is €90.31 (as of Aug 21, 2026), built from audited fundamentals. The current price: €340.00.
What is the quality score of 1SNPS?
Synopsys, Inc has a Quality Score of 38/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Synopsys, Inc (1SNPS)?
Our model-based price target is the fair value of €90.31 (as of Aug 21, 2026) from 22 valuation models. Cautious scenario €75.95, optimistic scenario €103.15. It is a calculation from audited fundamentals, not an analyst target.
What is the Synopsys, Inc stock forecast for 2026?
Our models put fair value at €90.31, about −73% upside versus a price of €340.00 (overvalued). Cautious scenario €75.95, optimistic scenario €103.15. The calculation is refreshed regularly with new filings.
What is the revenue of Synopsys, Inc (1SNPS)?
Synopsys, Inc reported trailing-twelve-month revenue of about €8.7B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 1SNPS?
The net profit margin of Synopsys, Inc is about 8.9%, meaning it keeps roughly 8.9% of revenue as net income. Based on the latest reported figures.
What growth is priced into Synopsys, Inc (1SNPS)?
For today's price to be fair in a discounted-cash-flow model, Synopsys, Inc would have to grow free cash flow by +20.9 % per year for ten years (discount rate 9.5 %, then 2 % perpetual growth). Over the last 3 years revenue grew +15.2 % per year. As of Aug 21, 2026.
What discount rate (WACC) does the fair value of 1SNPS use?
Our models discount Synopsys, Inc at 9.5 %: a base by market capitalisation (large), damped by beta 1.22. The same rate applies in all 26 models.
What is the intrinsic value of Synopsys, Inc (1SNPS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Synopsys, Inc it is €90.31 per share (as of Aug 21, 2026), against a price of €340.00. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Synopsys, Inc stock overvalued or undervalued in 2026?
As of Aug 21, 2026, 1SNPS trades above its calculated fair value: price €340.00, fair value €90.31, a gap of about −73% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 1SNPS?
No. The price is what the market pays today (€340.00); the fair value is what the company's own numbers justify (€90.31). For Synopsys, Inc the two are €249.69 per share apart. That gap is exactly why we show both numbers side by side.
How much is Synopsys, Inc worth?
The market values Synopsys, Inc at about €74.6B (market capitalisation, as of Aug 21, 2026). Per share that is €340.00; our models calculate a fair value of €90.31 per share.
What do the bullish and bearish scenarios say about 1SNPS?
Our models span a range for Synopsys, Inc: cautious scenario €75.95, base €90.31, optimistic €103.15 per share (as of Aug 21, 2026, price €340.00). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is 1SNPS from its 52-week high?
Synopsys, Inc trades at €340.00, about 40% below its 52-week high of €563.90 and 4% above the low of €326.00 (as of Aug 21, 2026). Distance from the high says nothing about value: that is what the fair value of €90.31 is for.
Which stocks are comparable to Synopsys, Inc?
From the same area (Technology) we also value Microsoft Corporation, Oracle Corporation, Palo Alto Networks, Inc, Fortinet, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Synopsys, Inc stock attractive at the current price?
The data as of Aug 21, 2026: price €340.00, calculated fair value €90.31 (−73%), Quality Score 38/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 1SNPS calculated?
We run Synopsys, Inc through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €90.31, with the spread shown as a cautious and an optimistic scenario.
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