Synopsys Valuation

Is SNPS * 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 SNPS * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNPS * (MX$9500) is trading above our estimate of fair value (MX$4982.8)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SNPS * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14x
Enterprise Value/EBITDA54.2x
PEG Ratio4.4x

Price to Earnings Ratio vs Peers

How does SNPS *'s PE Ratio compare to its peers?

The above table shows the PE ratio for SNPS * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52.5x
CDNS Cadence Design Systems
75.1x16.7%US$78.6b
WDAY Workday
49.5x13.6%US$68.4b
ROP Roper Technologies
39.6x9.4%US$58.0b
DSY Dassault Systèmes
45.9x13.9%€49.7b
SNPS * Synopsys
61.4x14.0%Mex$86.5b

Price-To-Earnings vs Peers: SNPS * is expensive based on its Price-To-Earnings Ratio (61.4x) compared to the peer average (52.5x).


Price to Earnings Ratio vs Industry

How does SNPS *'s PE Ratio compare vs other companies in the Global Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SNPS * is expensive based on its Price-To-Earnings Ratio (61.4x) compared to the Global Software industry average (32.8x).


Price to Earnings Ratio vs Fair Ratio

What is SNPS *'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.

SNPS * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio61.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SNPS *'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 SNPS * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$9,500.00
Mex$10,562.52
+11.2%
7.1%Mex$11,709.20Mex$8,009.71n/a17
May ’25n/a
Mex$10,501.99
0%
6.9%Mex$11,651.59Mex$7,970.30n/a18
Apr ’25n/a
Mex$10,444.55
0%
7.0%Mex$11,623.03Mex$7,950.77n/a17
Mar ’25Mex$9,905.00
Mex$10,659.21
+7.6%
6.9%Mex$11,507.40Mex$8,183.04n/a15
Feb ’25n/a
Mex$10,526.86
0%
7.9%Mex$11,582.12Mex$8,236.18n/a14
Jan ’25Mex$9,100.00
Mex$10,557.11
+16.0%
7.4%Mex$11,588.33Mex$8,240.59n/a15
Dec ’24Mex$9,570.00
Mex$10,255.37
+7.2%
10.7%Mex$11,607.98Mex$8,254.56n/a15
Nov ’24n/a
Mex$9,316.45
0%
8.9%Mex$10,947.36Mex$7,663.15n/a15
Oct ’24Mex$7,789.32
Mex$8,535.90
+9.6%
4.9%Mex$9,059.62Mex$7,388.43n/a14
Sep ’24Mex$7,877.00
Mex$8,122.45
+3.1%
4.9%Mex$8,631.35Mex$7,039.16n/a14
Aug ’24n/a
Mex$7,725.68
0%
7.9%Mex$8,543.01Mex$6,398.88n/a14
Jul ’24n/a
Mex$7,784.32
0%
7.5%Mex$8,623.63Mex$6,523.22n/a14
Jun ’24Mex$7,980.42
Mex$7,712.15
-3.4%
6.0%Mex$8,548.08Mex$6,732.71n/a14
May ’24n/a
Mex$7,641.45
0%
5.3%Mex$8,398.01Mex$6,869.47n/a14
Apr ’24Mex$6,790.00
Mex$7,822.89
+15.2%
5.3%Mex$8,597.42Mex$7,032.58n/a14
Mar ’24Mex$6,541.58
Mex$7,822.89
+19.6%
5.3%Mex$8,597.42Mex$7,032.58Mex$9,905.0014
Feb ’24Mex$6,660.00
Mex$7,811.77
+17.3%
6.6%Mex$8,760.59Mex$6,695.19n/a14
Jan ’24Mex$6,135.95
Mex$8,164.74
+33.1%
6.6%Mex$9,187.94Mex$7,021.79Mex$9,100.0015
Dec ’23Mex$6,770.00
Mex$7,938.76
+17.3%
6.9%Mex$8,945.71Mex$6,675.76Mex$9,570.0015
Nov ’23n/a
Mex$8,189.30
0%
8.2%Mex$9,107.96Mex$6,866.00n/a14
Oct ’23n/a
Mex$8,277.93
0%
8.0%Mex$9,155.97Mex$6,902.19Mex$7,789.3215
Sep ’23n/a
Mex$8,310.74
0%
7.4%Mex$9,154.05Mex$6,900.75Mex$7,877.0012
Aug ’23Mex$7,436.12
Mex$7,839.01
+5.4%
7.2%Mex$9,107.99Mex$6,836.11n/a11
Jul ’23n/a
Mex$7,638.90
0%
7.1%Mex$8,958.25Mex$6,723.72n/a13
Jun ’23Mex$5,820.00
Mex$7,481.08
+28.5%
7.9%Mex$8,864.04Mex$6,473.74Mex$7,980.4214
May ’23n/a
Mex$7,855.27
0%
8.3%Mex$8,987.75Mex$6,564.09n/a14

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


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