Synopsys, Inc.

DB:SYP Stock Report

Market Cap: €77.5b

Synopsys Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 SYP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYP (€503.9) is trading above our estimate of fair value (€430.11)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SYP. This is calculated by dividing SYP's market cap by their current earnings.
What is SYP's PE Ratio?
PE Ratio54.3x
EarningsUS$1.51b
Market CapUS$82.03b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SYP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.2x
SAP SAP
93.2x40.8%€255.8b
NEM Nemetschek
66.9x18.6%€11.4b
TMV TeamViewer
14.7x11.0%€1.7b
AOF ATOSS Software
42.1x7.8%€1.8b
SYP Synopsys
54.3x12.7%€82.0b

Price-To-Earnings vs Peers: SYP is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the peer average (54.2x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SYP 54.3xIndustry Avg. 28.5xNo. of Companies17PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SYP is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the European Software industry average (28.5x).

Price to Earnings Ratio vs Fair Ratio

What is SYP'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.

SYP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio54.3x
Fair PE Ratio39.2x

Price-To-Earnings vs Fair Ratio: SYP is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the estimated Fair Price-To-Earnings Ratio (39.2x).

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 SYP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€503.90
€603.54
+19.8%
8.3%€660.13€466.09n/a20
Nov ’25€478.70
€581.41
+21.5%
8.4%€638.06€450.51n/a19
Oct ’25€446.65
€565.99
+26.7%
9.0%€621.69€438.94n/a17
Sep ’25€468.60
€579.98
+23.8%
7.2%€624.88€441.20n/a16
Aug ’25€497.15
€592.65
+19.2%
7.5%€647.95€443.23n/a16
Jul ’25€559.80
€596.25
+6.5%
7.2%€653.49€447.02n/a17
Jun ’25€506.20
€588.48
+16.3%
7.1%€646.83€442.46n/a17
May ’25€505.20
€583.51
+15.5%
6.9%€647.39€442.85n/a18
Apr ’25€530.50
€582.44
+9.8%
7.0%€648.16€443.38n/a17
Mar ’25€532.00
€578.48
+8.7%
6.9%€624.51€444.10n/a15
Feb ’25€497.00
€565.83
+13.8%
7.9%€622.55€442.70n/a14
Jan ’25€467.20
€563.28
+20.6%
7.4%€618.30€439.68n/a15
Dec ’24€502.00
€548.34
+9.2%
10.7%€620.66€441.36n/a15
Nov ’24€449.20
€484.73
+7.9%
8.9%€569.58€398.71€478.7015
Oct ’24€433.80
€453.64
+4.6%
4.9%€481.47€392.66€446.6514
Sep ’24€427.60
€445.72
+4.2%
4.9%€473.65€386.27€468.6014
Aug ’24€412.00
€410.75
-0.3%
7.9%€454.21€340.21€497.1514
Jul ’24€395.80
€415.83
+5.1%
7.5%€460.66€348.46€559.8014
Jun ’24€422.60
€407.90
-3.5%
6.0%€452.12€356.10€506.2014
May ’24€336.60
€402.79
+19.7%
5.3%€442.67€362.10€505.2014
Apr ’24€355.70
€402.79
+13.2%
5.3%€442.67€362.10€530.5014
Mar ’24€337.35
€402.79
+19.4%
5.3%€442.67€362.10€532.0014
Feb ’24€333.75
€383.23
+14.8%
6.6%€429.78€328.46€497.0014
Jan ’24€299.35
€394.82
+31.9%
6.6%€444.30€339.55€467.2015
Dec ’23€334.55
€393.71
+17.7%
6.9%€443.65€331.08€502.0015
Nov ’23€298.80
€415.69
+39.1%
8.2%€462.33€348.52€449.2014

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

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