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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.

  1. Fair value above price? No
  2. Good quality? No
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Technology · IT · ISIN US8716071076

SI Broad data Sep 13, 2026

Synopsys, Inc

1SNPS · MI

Weakest SetupQuality growthStrongly overvalued and low quality.

!Fair value €170.62 · Strongly overvalued (−49%)
!Quality 38/100
✓Healthy Growth (revenue 3y +15.2 %/yr)
!Thin margins · 8.9% net margin (TTM)
✓Low debt · generates free cash flow
!Narrow moat 34/100

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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

Price vs Fair Value

€562.40 €320.50 Fair Value €170.62 Apr 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.

How to read this chart

17‑month range €320.50 – €562.40 · fair‑value band €152.94 – €220.02 · the €334.50 price screens above the €170.62 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 13, 2026.

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Company profile

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

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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.

Stock analysis

Synopsys, Inc (1SNPS) currently trades at €334.50, while our model-based Fair Value estimate is €170.62, implying the stock looks roughly 96.0% overvalued today.

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Valuation

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 €334.50 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.

Scenario range: €152.94 (bear) to €220.02 (bull), the price of €334.50 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 38/100 (below-average quality), in the Technology sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

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.

Key figures

Market cap €74.6B · P/E ratio 87.1 · P/S ratio 16.5 · EPS (TTM) €3.84 · Net margin 18.9% · Return on equity 3.8% · Return on assets (EBIT) 9.4% · Operating margin 10.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).

What moves the price

The share trades about 41% below its 52-week high and 3% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Technology peers we cover trades at −16% fair-value upside, at −49%, 1SNPS screens richer than that median.

Fair Value models

Bear €152.94 Fair Value €170.62 Bull €220.02
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then (€3.41 per share) are deliberately not added. 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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
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

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Quality Score breakdown

Overall quality 38/100

Of which business quality 44 · Market factors (momentum, volatility) 29

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 40
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 5
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+15.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+15.2%
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−0.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.5%
Dividend (yield on the price)0.0%
Profit margin 2022 to 2025 ⓘ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% → 13%

Growth Forecast

A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+35.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+14.3%
Yearly sales growth analysts expect, extended to five years.
Forecast 2026 (sales)+37.2%
Forecast 2027 (sales)+10.9%
Projected 2028 (sales)+9.7%
Projected 2029 (sales)+8.6%
Projected 2030 (sales)+7.5%

1SNPS screens 96% overvalued. Compare with Microsoft Corporation →

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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

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Synopsys, Inc · Fair Value
€170.62 −96%Fair Value
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Cite: Fair Value Calculator (2026). "Synopsys, Inc Fair Value". https://www.fairvalue-calculator.com/stock/1SNPS

Frequently asked questions

Is Synopsys, Inc (1SNPS) overvalued or undervalued?
As of Sep 13, 2026, our model estimates a fair value of €170.62 versus a price of €334.50, about −49% upside (overvalued).
What is the fair value of 1SNPS?
Our model-based fair value for Synopsys, Inc is €170.62 (as of Sep 13, 2026), built from audited fundamentals. The current price: €334.50.
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 €170.62 (as of Sep 13, 2026) from 22 valuation models. Cautious scenario €152.94, optimistic scenario €220.02. 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 €170.62, about −49% upside versus a price of €334.50 (overvalued). Cautious scenario €152.94, optimistic scenario €220.02. 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 Sep 13, 2026).
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 +35.3 % per year for five years (discount rate 12.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 3 years revenue grew +15.2 % per year. As of Sep 13, 2026.
What discount rate (WACC) does the fair value of 1SNPS use?
Our models discount Synopsys, Inc at 12.1 %: a base by market capitalisation (large), damped by beta 1.22, country premium for Italy. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Synopsys, Inc that is +35.3 % per year a year over ten years, using the same discount rate (12.1 %) and the same formula as our fair value.
How much growth has Synopsys, Inc (1SNPS) delivered so far?
Over the past 3 years revenue at Synopsys, Inc grew +15.2 % a year. The price currently implies +35.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Synopsys, Inc (1SNPS) growing?
The median revenue growth in the sector is +5.5 % a year. That is the yardstick for the growth priced into Synopsys, Inc (+35.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Synopsys, Inc (1SNPS)?
The free-cash-flow yield on the price is 2.17 %: that much free cash flow Synopsys, Inc produces per unit of market value. When it exceeds the discount rate of our models (12.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
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 €170.62 per share (as of Sep 13, 2026), against a price of €334.50. 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 Sep 13, 2026, 1SNPS trades above its calculated fair value: price €334.50, fair value €170.62, a gap of about −49% (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 (€334.50); the fair value is what the company's own numbers justify (€170.62). For Synopsys, Inc the two are €163.88 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 Sep 13, 2026). Per share that is €334.50; our models calculate a fair value of €170.62 per share.
What do the bullish and bearish scenarios say about 1SNPS?
Our models span a range for Synopsys, Inc: cautious scenario €152.94, base €170.62, optimistic €220.02 per share (as of Sep 13, 2026, price €334.50). 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 €334.50, about 41% below its 52-week high of €563.90 and 3% above the low of €326.00 (as of Sep 13, 2026). Distance from the high says nothing about value: that is what the fair value of €170.62 is for.
Which stocks are comparable to Synopsys, Inc?
From the same area (Technology) we also value Microsoft Corporation, Oracle Corporation, Palantir Technologies Inc, Palo Alto Networks, 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 Sep 13, 2026: price €334.50, calculated fair value €170.62 (−49%), 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 €170.62, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.0 % above its aggregate fair value. Synopsys, Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Synopsys, Inc (1SNPS)?
The closing price on Sep 18, 2026 was €334.50. Our model-based fair value is €170.62, about −49% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Synopsys, Inc right now?
The price sits above even our optimistic bull case (€220.02). 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.

Key figures of Synopsys, Inc

How large is the market capitalisation of Synopsys, Inc (1SNPS)?
The market capitalisation of Synopsys, Inc is €74.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/E ratio of Synopsys, Inc (1SNPS)?
The price-to-earnings ratio of Synopsys, Inc is 87.1. Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of Synopsys, Inc (1SNPS)?
The price-to-sales ratio of Synopsys, Inc is 16.5 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Synopsys, Inc (1SNPS)?
Earnings per share at Synopsys, Inc are €3.84 (price ÷ EPS = P/E 87.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Synopsys, Inc (1SNPS)?
The net margin of Synopsys, Inc is 18.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Synopsys, Inc (1SNPS)?
The return on equity (ROE) of Synopsys, Inc is 3.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Synopsys, Inc (1SNPS)?
On an EBIT basis the return on assets of Synopsys, Inc is 9.4% (avg 4y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Synopsys, Inc (1SNPS)?
The operating margin of Synopsys, Inc is 10.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Synopsys, Inc (1SNPS)?
Revenue at Synopsys, Inc is growing +41.9% versus a year earlier (3y avg +15.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Synopsys, Inc (1SNPS)?
Earnings per share at Synopsys, Inc are growing −96.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Synopsys, Inc (1SNPS) carry?
The net debt of Synopsys, Inc is €10.6B (fiscal year 2025, ≈ 7.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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