SNPSSynopsys, Inc.
Is the price fair?
A demanding price: priced for a lot of growth, at the top of its own P/E range, and rich vs its sector.
Priced for ~12% a year FCF growth. The price already bakes in strong, sustained growth.
Expensive vs its own history: P/E 89.2 vs a 50.8 median over 40 quarters (+76% vs median).
Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.
Unless marked, from derived, as of Jul 31, 2026.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What SNPS's price assumes
Synopsys, Inc. trades at 89.2× earnings against 34.2× for the median Software - Infrastructure name, more expensive than its own group.
Trailing P/E · Software - Infrastructure median 34.2 · 2.60× the median: the market pays up for this one
- Price / sales
- 9.43
Price / sales · today's price, trailing year to Jul 31, 2026
- Free cash flow yield
- 3.1%
Free cash flow yield · Software - Infrastructure median 5.3%
- Growth the price implies
- +12%
Growth the price implies · The price pays for +12% free cash flow growth a year for a decade; the business has delivered +20% a year over the last three.
Details›
- Price / booktoday's price, trailing year to Jul 31, 2026
- 2.85
- EV / EBITtoday's price, trailing year to Jul 31, 2026
- 119
- EV / salestoday's price, trailing year to Jul 31, 2026
- 10.1
- Technology median P/E459 names
- 37.7
- Software - Infrastructure median P/E107 names
- 34.2
- Free cash flow, trailing twelve months
- $2.75B
- Market capitalisation
- $88.8B
- 3-year free cash flow growth
- +20%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $218.39 |
| Its own P/E history, median | $290.43 |
| Its own P/E history, upper quartile | $340.08 |
| 52-week range | $367.94 – $534.56 |
| Today | $509.92 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Software, Infrastructure
Ranks #28 of 80 by RyuScore