Synopsys, Inc.

LSE:0LBP Stock Report

Market Cap: US$75.0b

Synopsys Valuation

Is 0LBP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0LBP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LBP ($484.97) is trading below our estimate of fair value ($578.85)

Significantly Below Fair Value: 0LBP is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LBP?

Key metric: As 0LBP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LBP. This is calculated by dividing 0LBP's market cap by their current earnings.
What is 0LBP's PE Ratio?
PE Ratio51.8x
EarningsUS$1.44b
Market CapUS$75.03b

Price to Earnings Ratio vs Peers

How does 0LBP's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LBP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.8x
SGE Sage Group
39.3x12.5%UK£12.7b
BYIT Bytes Technology Group
19.6x6.7%UK£1.0b
GBG GB Group
107.4x36.6%UK£874.3m
ALFA Alfa Financial Software Holdings
29x6.3%UK£640.4m
0LBP Synopsys
51.8x13.0%US$75.0b

Price-To-Earnings vs Peers: 0LBP is expensive based on its Price-To-Earnings Ratio (51.8x) compared to the peer average (48.8x).

Price to Earnings Ratio vs Industry

How does 0LBP's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
2.9xn/aUS$5.06m
No more companies available in this PE range
0LBP 51.8xIndustry Avg. 33.9xNo. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LBP is expensive based on its Price-To-Earnings Ratio (51.8x) compared to the UK Software industry average (33.9x).

Price to Earnings Ratio vs Fair Ratio

What is 0LBP'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.

0LBP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.8x
Fair PE Ratio60.8x

Price-To-Earnings vs Fair Ratio: 0LBP is good value based on its Price-To-Earnings Ratio (51.8x) compared to the estimated Fair Price-To-Earnings Ratio (60.8x).

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 0LBP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$484.97
US$637.78
+31.5%
7.2%US$699.00US$496.12n/a22
Dec ’25US$558.49
US$631.43
+13.1%
8.4%US$694.00US$490.00n/a21
Nov ’25US$518.62
US$632.38
+21.9%
8.4%US$694.00US$490.00n/a19
Oct ’25US$499.00
US$631.83
+26.6%
9.0%US$694.00US$490.00n/a17
Sep ’25US$516.79
US$644.14
+24.6%
7.2%US$694.00US$490.00n/a16
Aug ’25US$538.67
US$641.81
+19.1%
7.5%US$701.70US$480.00n/a16
Jul ’25US$597.71
US$640.23
+7.1%
7.2%US$701.70US$480.00n/a17
Jun ’25US$549.55
US$638.41
+16.2%
7.1%US$701.70US$480.00n/a17
May ’25US$523.67
US$632.47
+20.8%
6.9%US$701.70US$480.00n/a18
Apr ’25US$573.25
US$630.55
+10.0%
7.0%US$701.70US$480.00n/a17
Mar ’25US$591.65
US$625.25
+5.7%
6.9%US$675.00US$480.00n/a15
Feb ’25US$539.15
US$613.50
+13.8%
7.9%US$675.00US$480.00n/a14
Jan ’25US$514.04
US$614.93
+19.6%
7.4%US$675.00US$480.00US$484.6215
Dec ’24US$546.00
US$596.35
+9.2%
10.7%US$675.00US$480.00US$558.4915
Nov ’24US$473.98
US$510.61
+7.7%
8.9%US$600.00US$420.00US$518.6215
Oct ’24US$460.24
US$485.23
+5.4%
4.9%US$515.00US$420.00US$499.0014
Sep ’24US$460.74
US$484.64
+5.2%
4.9%US$515.00US$420.00US$516.7914
Aug ’24US$452.79
US$461.21
+1.9%
7.9%US$510.00US$382.00US$538.6714
Jul ’24US$437.60
US$455.85
+4.2%
7.5%US$505.00US$382.00US$597.7114
Jun ’24US$456.93
US$437.57
-4.2%
6.0%US$485.00US$382.00US$549.5514
May ’24US$374.72
US$424.93
+13.4%
5.3%US$467.00US$382.00US$523.6714
Apr ’24US$383.08
US$424.93
+10.9%
5.3%US$467.00US$382.00US$573.2514
Mar ’24US$364.67
US$424.93
+16.5%
5.3%US$467.00US$382.00US$591.6514
Feb ’24US$356.78
US$416.42
+16.7%
6.6%US$467.00US$356.90US$539.1514
Jan ’24US$317.44
US$414.99
+30.7%
6.6%US$467.00US$356.90US$514.0415

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 02:11
End of Day Share Price 2025/01/02 00:00
Earnings2024/10/31
Annual Earnings2024/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Synopsys, Inc. is covered by 35 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph VruwinkBaird
Ishan MajumdarBaptista Research
Gary MobleyBenchmark Company