Synopsys, Inc.

WBAG:SYNP Stock Report

Market Cap: €83.4b

Synopsys Valuation

Is SYNP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SYNP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYNP (€538.4) is trading above our estimate of fair value (€424.96)

Significantly Below Fair Value: SYNP is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SYNP?

Key metric: As SYNP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SYNP. This is calculated by dividing SYNP's market cap by their current earnings.
What is SYNP's PE Ratio?
PE Ratio57.4x
EarningsUS$1.51b
Market CapUS$86.80b

Price to Earnings Ratio vs Peers

How does SYNP's PE Ratio compare to its peers?

The above table shows the PE ratio for SYNP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.7x
CDNS Cadence Design Systems
82.3x16.4%US$85.5b
APP AppLovin
97.3x30.1%US$111.9b
WDAY Workday
45.9x13.6%US$70.7b
ADSK Autodesk
65.4x15.7%US$69.1b
SYNP Synopsys
57.4x12.7%€86.8b

Price-To-Earnings vs Peers: SYNP is good value based on its Price-To-Earnings Ratio (57.4x) compared to the peer average (72.7x).

Price to Earnings Ratio vs Industry

How does SYNP's PE Ratio compare vs other companies in the European Software Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SYNP 57.4xIndustry Avg. 28.1xNo. of Companies19PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SYNP is expensive based on its Price-To-Earnings Ratio (57.4x) compared to the European Software industry average (28.1x).

Price to Earnings Ratio vs Fair Ratio

What is SYNP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SYNP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio57.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SYNP's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SYNP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€538.40
€606.37
+12.6%
8.4%€666.45€470.55n/a21
Nov ’25€478.90
€584.82
+22.1%
8.4%€641.81€453.15n/a19
Oct ’25€446.30
€565.99
+26.8%
9.0%€621.69€438.94n/a17
Sep ’25€467.70
€579.98
+24.0%
7.2%€624.88€441.20n/a16
Aug ’25€508.60
€592.65
+16.5%
7.5%€647.95€443.23n/a16
Jul ’25€555.30
€596.25
+7.4%
7.2%€653.49€447.02n/a17
Jun ’25€507.50
€589.51
+16.2%
7.1%€647.95€443.23n/a17
May ’25€503.10
€583.51
+16.0%
6.9%€647.39€442.85n/a18
Apr ’25€531.50
€582.44
+9.6%
7.0%€648.16€443.38n/a17
Mar ’25€541.50
€578.48
+6.8%
6.9%€624.51€444.10n/a15
Feb ’25€492.80
€565.83
+14.8%
7.9%€622.55€442.70n/a14
Jan ’25€468.00
€563.28
+20.4%
7.4%€618.30€439.68n/a15
Dec ’24€505.00
€548.34
+8.6%
10.7%€620.66€441.36n/a15
Nov ’24€448.20
€484.73
+8.1%
8.9%€569.58€398.71€478.9015
Oct ’24€440.00
€453.64
+3.1%
4.9%€481.47€392.66€446.3014
Sep ’24€427.80
€445.72
+4.2%
4.9%€473.65€386.27€467.7014
Aug ’24€412.40
€410.75
-0.4%
7.9%€454.21€340.21€508.6014
Jul ’24€399.60
€415.83
+4.1%
7.5%€460.66€348.46€555.3014
Jun ’24€423.40
€407.90
-3.7%
6.0%€452.12€356.10€507.5014
May ’24€332.20
€402.79
+21.2%
5.3%€442.67€362.10€503.1014
Apr ’24€350.20
€402.79
+15.0%
5.3%€442.67€362.10€531.5014
Mar ’24€340.50
€402.79
+18.3%
5.3%€442.67€362.10€541.5014
Feb ’24€326.20
€383.23
+17.5%
6.6%€429.78€328.46€492.8014
Jan ’24€300.65
€394.82
+31.3%
6.6%€444.30€339.55€468.0015
Dec ’23€336.55
€393.71
+17.0%
6.9%€443.65€331.08€505.0015
Nov ’23€297.40
€415.69
+39.8%
8.2%€462.33€348.52€448.2014

Analyst Forecast: Target price is less than 20% higher than the current share price.

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