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SNPS · Intrinsic value

Is Synopsys, Inc. (SNPS) overvalued or undervalued?

Synopsys, Inc. (SNPS) trades at the delayed market price of $459.66 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $276.70 a share (66% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.

Model by · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made

Is SNPS overvalued?

Live data unavailable
Showing the last price we hold for this listing, recorded 2026-10-19 15:54 UTC (2 hours ago).
Fair value
$276.70
Market price
$459.66
Downside to fair value
39.8%
Verdict
66% above fair value
Price as of · Prices are delayed.
Fair value against the delayed market price: 66% above fair value.

Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.

What is SNPS's TickerWorth Score?

C47/100

Middle of the pack — real strengths and real weaknesses

Compared with Technology companies in US

Its strongest point: growing quickly. Its weakest: trades above our estimate of what it's worth.

  • Value · 43 of 100

    Cheaper than 43% of Technology companies in US

  • Price vs worth · 18 of 100
  • Quality · 57 of 100

    More profitable than 57% of Technology companies in US

  • Financial health · 34 of 100

    Financially stronger than 34% of Technology companies in US

  • Growth · 82 of 100

    Growing faster than 82% of Technology companies in US

  • Momentum · 50 of 100

    Outperformed 50% of Technology companies in US over the past year

Confidence: Medium confidence · Scored

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SNPS DCF valuation: what the price assumes

At a recent price of $459.65, Synopsys, Inc. (SNPS) trades 66% above TickerWorth's blended fair value of $276.70 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $48.24) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices SNPS against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Synopsys, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.4%, with a long-run terminal growth rate of 2.5%. About 73% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — SNPS would need sustained revenue growth of more than 25%/yr to justify today's price, against about 15.4% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SNPS's modeled DCF value ranges from about $22.54 to $97.61 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Synopsys, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SNPS's intrinsic value. Figures update as new filings and prices come in.

Every input behind SNPS's DCF

InputValue
Base-year revenueSYNOPSYS INC FY2025 10-K (accession 0000883241-25-000028): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year.$7,054,180,000
Base EBIT marginSYNOPSYS INC FY2025 10-K (accession 0000883241-25-000028): us-gaap:OperatingIncomeLoss 914,927,000 / revenue 7,054,178,000 = 12.97%, FY2025.13.0%
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast27% → 22% → 16% → 10% → 4%
Risk-free rateLive feed — US 10-year Treasury yield (^TNX)5.2%
BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5)1.23
Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC2.5%
Diluted sharesSYNOPSYS INC FY2025 10-K (accession 0000883241-25-000028): WeightedAverageNumberOfDilutedSharesOutstanding = 165,656,000 shares, FY2025.166M
Market priceLast known price · as of 2026-10-19 17:43 UTC$459.65

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What does Synopsys, Inc. do?

What does it do?

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in the Software - Infrastructure industry (Technology sector), headquartered in United States. The company employs roughly 28,000 people.

How does it make money?

The business turns $7.1B in annual revenue into profit. Out of every $100 of sales, about $15 is left as operating profit (operating margin of 14.5%), after a 83% gross margin on the products/services it sells. After all costs, taxes and interest, 11.4% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks mixed: carries modest debt (0.3× equity), can just cover its short-term bills (1.3× current ratio), and is currently profitable.

Who at SNPS filed insider trades?

Recent insider filings for Synopsys, Inc.
DateInsiderRelationshipWhat happenedValueFiling
Ghazi SassineDirector, PRESIDENT AND CEOOption exercise$1,984,391.52Form 4 for Ghazi Sassine (opens sec.gov in a new tab)
Ghazi SassineDirector, PRESIDENT AND CEOOpen-market sale$6,759,359.17Form 4 for Ghazi Sassine (opens sec.gov in a new tab)
LEE JANETGC & Corporate SecretaryOpen-market sale$293,344.16Form 4 for LEE JANET (opens sec.gov in a new tab)
LEE JANETGC & Corporate SecretaryOpen-market sale$281,341.20Form 4 for LEE JANET (opens sec.gov in a new tab)
Kankanwadi SudhindraDeputy CFO & CAOOption exercise$1,246,019.60Form 4 for Kankanwadi Sudhindra (opens sec.gov in a new tab)
Kankanwadi SudhindraDeputy CFO & CAOOpen-market sale$4,585,000.00Form 4 for Kankanwadi Sudhindra (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

  • What is SNPS's intrinsic value?

    TickerWorth's blended fair value for Synopsys, Inc. (SNPS) is $276.70 per share, versus a market price of $459.65 (66% above fair value).

  • Is SNPS overvalued or undervalued?

    Our cash-flow model understates a business growing this fast, so we don't call SNPS overvalued on it. Against a blend that leans on peer multiples, the price of $459.65 sits 66% above our estimate. This is an educational estimate, not advice.

  • What discount rate is used for SNPS?

    A WACC of 10.4% and a terminal growth rate of 2.5%.

  • Is Synopsys stock undervalued?

    TickerWorth's fair value for Synopsys, Inc. (SNPS) is $276.70 against a market price of $459.66. Our read: 66% above fair value. This is a model estimate, not investment advice.

  • Synopsys (SNPS) DCF valuation and fair value

    Our fair value for Synopsys, Inc. (SNPS) is $276.70, built on a 10.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

  • What growth is priced into Synopsys stock?

    Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $459.66. A model estimate, not investment advice.

  • Synopsys (SNPS) insider trading

    The most recent insider filing (SEC Form 4) for Synopsys, Inc. (SNPS): Ghazi Sassine, Director, PRESIDENT AND CEO, option exercise on 2026-10-15. The latest filings are listed on this page. A disclosure, not a signal to trade.

Not investment advice. TickerWorth Score is a model output.

Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.