SNPS

Synopsys, Inc.

$481.89

+$7.47 (1.57%)Oct 28 close

Information TechnologyS&P 500 Compare Technicals

Model valuationLeans undervaluedDCF base $736

1M 3M 6M 1Y 2Y

SNPSSPY

Wall St. Highest PT $700.00 (+45.3%) Wall St. Avg PT $586.95 (+21.8%)

Underwater Drawdown %Max DD -31.2%Current -9.9%

Relative Strength vs SPY-10.4% vs SPYUnderperforming

+$30.70 (6.80%)

+$64.28 (15.39%)

+$108.20 (28.95%)

+$0.67 (0.14%)

YTD

+$12.17 (2.59%)

+$25.06 (5.49%)

Chart

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Ratings & dials

1m · 5m · 15m · 1h · 4h · 1D

Analyst & Morningstar ratings

Consensus · Targets · Morningstar

Wall Street analyst consensus

Strong Buy

25 analysts · mean score 1.24

1 = Strong Buy · 5 = Sell

Strong Buy2080%

Buy416%

Hold14%

Underperform00%

Sell00%

Wall Street consensus · as of Oct 20, 2026

Analyst price targets

Current price$481.89

Average target$586.95

+$105.06 (+21.8%) upsideaverage target vs current price

CurrentAverageMedian

Low$475.00

Median$600.00

High$700.00

12-month Wall Street target range · as of Oct 20, 2026

Recent analyst rating changes · 30

Reiterated

2026-10-20 · Morgan Stanley reiterated Overweight on SNPS

Reiterated

2026-10-12 · Needham reiterated Buy on SNPS

Reiterated

2026-10-01 · Wells Fargo reiterated Overweight on SNPS

Reiterated

2026-10-01 · Keybanc reiterated Overweight on SNPS

Reiterated

2026-10-01 · Rosenblatt reiterated Buy on SNPS

Upgrade

2026-09-25 · HSBC upgraded SNPS from Hold to Buy

All analyst rating changes ›

Third-party ratings, not SURVYR.'s views.

Health check

Financial health

Safe zone

Altman Z-score 3.9

Above 2.99 is the safe zone, below 1.81 the distress zone.

Quality

Weak

Piotroski F-score 3 of 9

See the tests

✓Positive net income
✓Positive operating cash flow
✗Return on assets improved
✓Cash flow above net income
✗Long-term debt / assets fell
✗Current ratio improved
✗No share dilution
✗Gross margin improved
✗Asset turnover improved

Computed by SURVYR. from the company's SEC filings (latest balance sheet Jul 31, 2026). Descriptive, not a forecast.

Key stats & company

Market value$90.9B

P/E (last 12 months)83.8

P/E (next 12 months, estimated)25.3

52-week range$362.55 – $539.48

Revenue growth (latest quarter vs a year ago)+42.4%

Dividend yieldNo dividend

Analyst consensusStrong Buy (25)

Average analyst price target$586.95 (+22%)

What they do

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.

Technology · Software - Infrastructure

Valuation and fundamentals

Valuation & fundamentals

Bottom line

Leans undervalued

Model read-out from the numbers below, not advice. Score +1 (DCF counts double).

▲DCF (base case)above the price by 53%

▼Forward P/E vs sector25.3x vs median 17.3x

▼Piotroski F-score3/9

▲Altman Z3.9 (safe)

•Net debt / EBITDA2.5x

▲Analyst target+22% (25 analysts)

Discounted cash flow

Bear

$322

-33%

growth 17% · disc. 11.3% · term. 2.0%

Base

$736

+53%

growth 29% · disc. 10.3% · term. 2.5%

Bull

$1,354

+181%

growth 36% · disc. 9.3% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 16% a year for 10 years.

Implied

+16%/yr

FCF, last 3 yrs

-6%/yr

FCF, last 5 yrs

+10%/yr

Revenue, last 3 yrs

+15%/yr

Revenue, last 5 yrs

+14%/yr

Same inputs as the DCF above: trailing free cash flow 2.7B, 10.3% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-07-31). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.21 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)

sector median 35.4× · 86th pct

83.8×
pricier

Forward P/E

sector median 17.3× · 75th pct

25.3×
pricier

EV / EBITDA

sector median 20.3× · 77th pct

37.2×
pricier

Price / sales

sector median 4.8× · 76th pct

9.7×
pricier

Price / book

sector median 5.2× · 27th pct

2.9×
cheaper

FCF yield

sector median 3.6% · 45th pct

3.0%
pricier

Forward EPS $18.73 vs trailing $5.66 (+231% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$10.9B

as of 2026-07-31

vs a year ago

+8%

YoY

× TTM revenue

1.16×

coverage

24-10

25-01

25-04

25-07

25-10

26-01

26-04

26-07

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

72.4%

Operating margin

8.5%

FCF margin

29.2%

Net margin

11.4%

Return on equity

3.5%

Return on invested capital

1.8%

Net debt / EBITDA

2.5×

Current ratio

1.3×

Interest cover

1.3×

Cash conversion (OCF/NI)

2.7×

Piotroski F-score 3/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✗ Current ratio improved✗ No share dilution✗ Gross margin improved✗ Asset turnover improved

Altman Z-score 3.9 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$587

+22%

Analysts

Strong Buy

Range

$475–$700

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$7.1B	$1.3B	$1.3B
2024	$6.1B	$2.3B	$1.3B
2023	$5.3B	$1.2B	$1.5B
2022	$4.6B	$984.6M	$1.6B
2021	$4.2B	$757.5M	$1.4B
2020	$3.7B	$664.3M	$836.6M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +15.2%.

For information only · Important disclosures

Grades vs sector

Momentum

34th percentile in sector

C-

12-1 return: -4.2%
Percentile within its GICS sector across the S&P 1500.

Growth

87th percentile in sector

A-

Revenue growth (YoY): +42.4%
Percentile within its GICS sector across the S&P 1500.

Value

22nd percentile in sector

Forward E/P: 4.1% · EBITDA/EV: 2.2%
Percentile within its GICS sector across the S&P 1500.

Profitability

37th percentile in sector

C-

Profit margin: +11.4% · Return on equity: +3.7%
Percentile within its GICS sector across the S&P 1500.

Revisions

Not enough data yet

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Systematic Models

Held by 1 of 7 live models: SURVYR. Long Book.

SURVYR. Long Book

4.6% of the book · Core sleeve

Held Quality Growth

Outside this model's universe or screens

Momentum Top 15

ranked 402 of 499 · 12-month momentum -10.9%

Momentum Blend

Not in the current book

New Highs Growth

Outside this model's universe or screens

SURVYR. Barbell Momentum & T-Bill Shield

Outside this model's universe or screens

SURVYR. Physical AI Grid & Power

Outside this model's universe or screens

Why it's in the SURVYR. Long Book

Picked for this research portfolio at the Oct 21, 2026 close (Core group, AI).

What would knock it out: Weights are fixed and there is no rebalance rule. Any change would be dated and shown here.

Earnings & events

SNPS earningsNext report in 41 days

Next report

Wed Dec 9, 2026Time not confirmed

EPS consensus$4.13 range $4.01–$4.25

Revenue consensus$2.6B 16 analysts

Last 4 quarters · EPS vs estimate

Aug 26, 2026$3.91est $3.67+6.4%Above estimates

May 27, 2026$3.35est $3.16+6.0%Above estimates

Feb 25, 2026$3.77est $3.56+6.0%Above estimates

Dec 10, 2025$2.90est $2.78+4.2%Above estimates

In line = within 1% of the estimate.

EstimateActual (beat)Actual (miss)

Quarterly revenue

Quarter	Revenue	YoY
2026-07-31	$2.5B	+42.4%
2026-04-30	$2.3B	–
2026-01-31	$2.4B	–
2025-10-31	$2.3B	–
2025-07-31	$1.7B	–

News & catalysts

More news

Why Should You Think About Synopsys Differently Now?

Trefis · Oct 27

What Just Happened To Synopsys Stock?

Trefis · Oct 27

Research

Coteau Long Book: rebalance of Oct 21, 2026Oct 22, 2026

Rating changes

Reiterated

2026-10-20 · Morgan Stanley reiterated Overweight on SNPS

Reiterated

2026-10-12 · Needham reiterated Buy on SNPS

Reiterated

2026-10-01 · Wells Fargo reiterated Overweight on SNPS

Reiterated

2026-10-01 · Keybanc reiterated Overweight on SNPS

Reiterated

2026-10-01 · Rosenblatt reiterated Buy on SNPS

Upgrade

2026-09-25 · HSBC upgraded SNPS from Hold to Buy

Third-party analyst actions, not SURVYR.'s views. All rating changes

Insider trades

Ghazi Sassine

Director, PRESIDENT AND CEO · 2026-10-15

Sell
$6.8M

Kankanwadi Sudhindra

Deputy CFO & CAO · 2026-10-06

Sell
$4.6M

Lee Janet

GC & Corporate Secretary · 2026-10-06

Sell
$281.3K

Lee Janet

GC & Corporate Secretary · 2026-10-06

Sell
$293.3K

Kankanwadi Sudhindra

Deputy CFO & CAO · 2026-10-05

Sell
$1.5M

Ghazi Sassine

Director, PRESIDENT AND CEO · 2026-09-15

Sell
$5.5M

De Geus Aart

Director, EXECUTIVE CHAIR · 2026-09-01

Sell
$10.3M

De Geus Aart

Director, EXECUTIVE CHAIR · 2026-08-31

Sell
$11.0M

De Geus Aart

Director, EXECUTIVE CHAIR · 2026-08-28

Sell
$11.1M

None

None · None

Sell
–

None

None · None

Sell
–

None

None · None

Sell
–

Stats refreshed 2026-10-27 18:04:15 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Systematic research · Not investment advice · Hypothetical unless marked Live · Data: Yahoo Finance (15-min delayed), SEC EDGAR, House Clerk · Important disclosures · Contact desk@coteau.app

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Coteau 0.9 · Oct 21, 2026

SNPS

Chart

Ratings & dials

Analyst & Morningstar ratings

Health check

Key stats & company

What they do

Valuation & fundamentals

Discounted cash flow

Multiples vs Information Technology

Backlog (remaining performance obligations)

Quality & financial health

Analysts

Annual history

Grades vs sector

Systematic Models

Earnings & events

Quarterly revenue

News & catalysts

Research

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Important disclosures