Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (24 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $303.01 Implied EV: $66.38B |
What growth rate is the market pricing in at $389?
The market implies +18.9% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +9.8%, reflecting heavy growth investment expected to generate future returns.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
"Market is pessimistic — investigate whether fears are temporary or structural"
Price above estimated intrinsic value despite market fear — investigate whether assumptions need revision
