# Synopsys Inc. (SNPS) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $393.84, market value $75.5 billion.

## Valuation
- **P/E (trailing): 69.0×** (5-yr avg 53.4×, 3-yr avg 50.4×). Synopsys Inc. trades at 69.0× trailing earnings, well above its own five-year average of 53.4×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 22.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 8.0×**. Each dollar of revenue is priced at 8.0×.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 32.9×**. Enterprise value is 32.9× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.6%** (5-yr avg 2.3%). Free cash flow equals 3.6% of the market value, above its five-year average of 2.3%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.4%**. The inverse of the P/E: 1.4% of the price is earned each year.

## Profitability
- **Gross margin: 72.4%**. Synopsys Inc. keeps 72.4% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 8.5%**. 8.5% of revenue is left after running the business.
- **Net margin: 18.9%**. 18.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.7%**. 4.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 1.6%**. Return on all capital, debt included, is 1.6%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.2%**. Each dollar of assets produces 2.2% of profit.

## Growth
- **Revenue growth (1 yr): 15.1%** (3-yr 15.2%/yr, 5-yr 13.9%/yr). Revenue grew 15.1% over the last year, against 13.9% a year compounded over five years.
- **EPS growth (1 yr): -44.6%** (3-yr 8.5%/yr, 5-yr 13.5%/yr). Earnings per share fell 44.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -5.6%/yr**. Free cash flow has compounded at -5.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.48**. Debt is 0.48 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 4.1×**. It would take 4.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Altman Z-score: 3.31**. A Z-score of 3.31 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Synopsys Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (26 analysts). 26 analysts cover Synopsys Inc.; the consensus is buy, with an average price target of $544.97 (+38% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -34.6%** (YTD -16.2%, 3-mo -15.3%). The shares are down 34.6% over twelve months including dividends.
- **From 52-week high: -35.9%** (7.6% above the low). Trading 36% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 1.73** (volatility 59%). Beta of 1.73 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SNPS · Page: https://foliofundamentals.com/stocks/snps

Not investment advice.