---
title: Synopsys (SNPS) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/snps
ticker: SNPS
as_of: 2026-10-17
sector: Technology
industry: Software - Infrastructure
---
# Synopsys (SNPS)

Synopsys (SNPS) closed at $454.63 on Oct 16, 2026, overvalued by 306% vs its model value of $112.09 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $454.63 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $112.09 |
| Price vs model | overvalued by 306% vs model |
| Range of that model | $52.19 – $339.37 |
| Market value | $87.1B |
| P/E (fiscal 2025) | 56.5 |
| Net margin (fiscal 2025) | 18.9% |
| Free cash flow (fiscal 2025) | $1.3B |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 1.21 |
| Cost of capital (WACC) | 9.14% |
| Business classification | High Growth (Low/slowing growth (~10% recent), Moderate margins (19% net margin), Highly cyclical earnings) |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $112.09 | $52.19 | $339.37 |
| DCF · Perpetuity growth · 10y | cross check | $146.54 | $75.57 | $412.99 |
| DCF · EBITDA exit · 5y | cross check | $0.00 | $0.00 | $0.00 |
| DCF · EBITDA exit · 10y | cross check | $0.00 | $0.00 | $0.00 |
| P/E · peers | cross check | $0.00 | $0.00 | $0.00 |
| P/E · own history | cross check | $492.09 | $406.41 | $554.76 |
| PEG | sanity check | $378.42 | $378.42 | $378.42 |
| EV/EBITDA · peers | cross check | $0.00 | $0.00 | $0.00 |
| EV/Revenue · peers | cross check | $331.53 | $331.53 | $331.53 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 9 open-market sales ($51.4M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 15, 2026 | Ghazi Sassine | PRESIDENT AND CEO | Option/RSU exercise (10b5-1 plan) | 14,604 | $0 |
| Oct 15, 2026 | Ghazi Sassine | PRESIDENT AND CEO | Open-market sell (10b5-1 plan) | 14,604 | $6.8M |
| Oct 15, 2026 | Ghazi Sassine | PRESIDENT AND CEO | Option/RSU exercise (10b5-1 plan) | 14,604 | $2.0M |
| Oct 6, 2026 | LEE JANET | GC & Corporate Secretary | Open-market sell | 560 | $281,341.2 |
| Oct 6, 2026 | LEE JANET | GC & Corporate Secretary | Open-market sell | 583.607 | $293,344.2 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 5, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/883241/000119312526413359/d830308d8k.htm |
| Aug 26, 2026 | 8-K | 2.05 Costs of Exit or Disposal | https://www.sec.gov/Archives/edgar/data/883241/000119312526368858/d135796d8ka.htm |
| Aug 26, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/883241/000119312526368620/d157153d8k.htm |
| Aug 26, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/883241/000088324126000025/snps-20260731.htm |
| Aug 12, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/883241/000119312526345878/d148701d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Polen Capital | 2026-06-30 | 41,267 | $18.4M |
| Bridgewater | 2026-06-30 | 40,180 | $17.9M |
| Christopher Davis | 2026-06-30 | 24,962 | $11.1M |
| Dodge & Cox | 2026-06-30 | 10,100 | $4.5M |

5 tracked managers in all.

## About

Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio code…

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Source: https://sweetvaluelab.com/stocks/snps (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.