Technology › Software - Infrastructure

Synopsys, Inc. (SNPS) Stock Overview

Market Cap: $82.04B

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP.

Mar 19, 2026$428.25

1Y -4.9%

Rewards

★Gross margin of 82.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Each dollar of retained earnings has created $8.02 of market value — management is an exceptional capital allocator.

Risks

⚠ROIC has declined by 13.2 percentage points over the observed period, which may signal competitive erosion.
⚠Share count has increased by 22% over the past 4 years, diluting existing shareholders.
⚠Trailing P/E of 65.8x is 29% above the historical average of 51.0x — the stock trades at a premium to its own history.

SNPS Key Valuation Metrics

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Free Cash Flow

$3.10B

FCF Yield

3.77%

Trailing P/E

65.78

Forward P/E

25.11

ROIC

2.04%

ROE

4.36%

Gross Margin

82.02%

PEG Ratio

N/A

Debt / Equity

0.36

Interest Coverage

N/A

Net Debt / EBITDA

5.37

Dividend Yield

N/A

SNPS Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

SNPS $1 Retained Earnings Test

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Market Value

$8.02

created per $1 retained

Exceptional Value Creator

Earning Power

$0.80

created per $1 retained

Mediocre Allocator

Σ Retained

$4.83B

Δ Market Cap

+$38.71B

Δ Earning Power

+$3.86B

Buffett's "$1 Test": For every $1 retained, how much value did management create?
Market Value = market's verdict (mood-sensitive) · Earning Power = owner earnings / discount rate (mood-independent)

SNPS Discounted Cash Flow (DCF) Analysis

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90.6% Overvalued

Price is 90.6% above estimated fair value

Current Price: $428.25

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $224.68

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Parameter	Min (Bear)Value	BaseValue	Max (Bull)Value
Initial Cash Flow
Growth Rate (Yr 1-5)	%	%	%
Growth Rate (Yr 6-10)	%	%	%
Terminal Growth Rate	%	%	%
Discount Rate	%	%	%
	Bear Case $115.47 Implied EV: $30.79B	Base Case $224.68 Implied EV: $51.71B	Bull Case $347.39 Implied EV: $75.21B

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $428?

+24.5%

Market-Implied Owner Earnings Growth

Standard FCF implies +12.9%

The market implies +24.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +12.9%, reflecting heavy growth investment.

SNPS Economic Moat Score

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63/100

Narrow Moat

70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

SNPS Forensic Accounting

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-3.12

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

SNPS Management & Board

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Dr. Aart J. de Geus Ph.D.

Co-Founder & Executive Chairman · Age 71

$366,673

total pay

Mr. Sassine Ghazi

CEO, President & Director · Age 54

$2.09M

total pay

Ms. Shelagh Glaser

Chief Financial Officer · Age 60

$1.05M

total pay

Ms. Janet Lee

General Counsel & Corporate Secretary · Age 60

$501,255

total pay

Ms. Alessandra Costa

Senior Vice President of Operations

Mr. Sudhindra Kankanwadi

Chief Accounting Officer · Age 54

Mr. Tushar Jain

Head of Investor Relations

Ms. Ann Minooka

Chief Marketing Officer

Mr. Antonio Varas

Chief Strategy Officer

Mr. Raja Tabet

Senior Vice President of Engineering Excellence Group

SNPS Ownership

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Insiders 3.0%Institutions 91.0%Retail & Other 6.1%

No. of Institutional Holders2,067

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

SNPS Insider Buying Activity

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Buys (3M)

Buys (12M)

Total value (12M): $148,904

PAINTER ROBERT G

Director

$148,904

@ $425.44 · 2025-09-11

CASPER MARC N

Director

$439,087

@ $585.45 · 2024-03-25

Open market purchases · includes direct & indirect ownership · excludes option exercises

SNPS Insider Selling Activity

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Sells (3M)

Sells (12M)

Total value (12M): $31.71M

LEE JANET

General Counsel

$132,500

@ $530.00 · 2026-01-12

LEE JANET

General Counsel

$127,500

@ $510.00 · 2026-01-07

GLASER SHELAGH M

Chief Financial Officer

$1.69M

@ $460.77 · 2025-12-19

KANKANWADI SUDHINDRA

Officer

$7.84M

@ $493.76 · 2025-09-22

GLASER SHELAGH M

Chief Financial Officer

$2.23M

@ $609.77 · 2025-09-05

GHAZI SASSINE E

Chief Executive Officer

$6.69M

@ $589.01 · 2025-09-02

MAHONEY RICHARD S

Officer

$4.25M

@ $471.21 · 2025-06-18

GLASER SHELAGH M

Chief Financial Officer

$3.55M

@ $485.72 · 2025-06-06

GHAZI SASSINE E

Chief Executive Officer

$5.20M

@ $457.93 · 2025-06-02

DE GEUS AART J

Officer and Director

$6.98M

@ $444.42 · 2025-03-06

GHAZI SASSINE E

Chief Executive Officer

$5.27M

@ $463.75 · 2025-03-03

MAHONEY RICHARD S

Officer

$10.54M

@ $506.01 · 2025-01-15

GHAZI SASSINE E

Chief Executive Officer

$5.70M

@ $553.89 · 2024-08-23

DE GEUS AART J

Officer and Director

$305,954

@ $620.60 · 2024-07-15

DE GEUS AART J

Officer and Director

$8.22M

@ $620.77 · 2024-07-11

DE GEUS AART J

Officer and Director

$20.55M

@ $618.97 · 2024-07-08

DE GEUS AART J

Officer and Director

$4.35M

@ $610.52 · 2024-07-03

DE GEUS AART J

Officer and Director

$10.30M

@ $603.27 · 2024-07-01

DE GEUS AART J

Officer and Director

$6.66M

@ $602.06 · 2024-06-27

DE GEUS AART J

Officer and Director

$4.05M

@ $600.40 · 2024-06-25

MAHONEY RICHARD S

Officer

$2.03M

@ $611.41 · 2024-06-18

RUNKEL JOHN F JR

General Counsel

$530,684

@ $566.97 · 2024-06-10

RUNKEL JOHN F JR

General Counsel

$722,213

@ $582.90 · 2024-05-24

GHAZI SASSINE E

Chief Executive Officer

$6.00M

@ $582.41 · 2024-05-24

RUNKEL JOHN F JR

General Counsel

$3.08M

@ $579.37 · 2024-04-03

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

SNPS 🎭 Mr. Market's Mood

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😐Neutral(41/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

SNPS ⚖️ Buffett Signal

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⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (41)

SNPS Investment Checklist & Notes

Learn more →

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:30:31 AM

SNPS Insider Buying Activity

Learn more →

Buys (3M)

Buys (12M)

Total value (12M): $148,904

PAINTER ROBERT G

Director

$148,904

@ $425.44 · 2025-09-11

CASPER MARC N

Director

$439,087

@ $585.45 · 2024-03-25

Open market purchases · includes direct & indirect ownership · excludes option exercises

SNPS Insider Selling Activity

Learn more →

Sells (3M)

Sells (12M)

Total value (12M): $31.71M

LEE JANET

General Counsel

$132,500

@ $530.00 · 2026-01-12

LEE JANET

General Counsel

$127,500

@ $510.00 · 2026-01-07

GLASER SHELAGH M

Chief Financial Officer

$1.69M

@ $460.77 · 2025-12-19

KANKANWADI SUDHINDRA

Officer

$7.84M

@ $493.76 · 2025-09-22

GLASER SHELAGH M

Chief Financial Officer

$2.23M

@ $609.77 · 2025-09-05

GHAZI SASSINE E

Chief Executive Officer

$6.69M

@ $589.01 · 2025-09-02

MAHONEY RICHARD S

Officer

$4.25M

@ $471.21 · 2025-06-18

GLASER SHELAGH M

Chief Financial Officer

$3.55M

@ $485.72 · 2025-06-06

GHAZI SASSINE E

Chief Executive Officer

$5.20M

@ $457.93 · 2025-06-02

DE GEUS AART J

Officer and Director

$6.98M

@ $444.42 · 2025-03-06

GHAZI SASSINE E

Chief Executive Officer

$5.27M

@ $463.75 · 2025-03-03

MAHONEY RICHARD S

Officer

$10.54M

@ $506.01 · 2025-01-15

GHAZI SASSINE E

Chief Executive Officer

$5.70M

@ $553.89 · 2024-08-23

DE GEUS AART J

Officer and Director

$305,954

@ $620.60 · 2024-07-15

DE GEUS AART J

Officer and Director

$8.22M

@ $620.77 · 2024-07-11

DE GEUS AART J

Officer and Director

$20.55M

@ $618.97 · 2024-07-08

DE GEUS AART J

Officer and Director

$4.35M

@ $610.52 · 2024-07-03

DE GEUS AART J

Officer and Director

$10.30M

@ $603.27 · 2024-07-01

DE GEUS AART J

Officer and Director

$6.66M

@ $602.06 · 2024-06-27

DE GEUS AART J

Officer and Director

$4.05M

@ $600.40 · 2024-06-25

MAHONEY RICHARD S

Officer

$2.03M

@ $611.41 · 2024-06-18

RUNKEL JOHN F JR

General Counsel

$530,684

@ $566.97 · 2024-06-10

RUNKEL JOHN F JR

General Counsel

$722,213

@ $582.90 · 2024-05-24

GHAZI SASSINE E

Chief Executive Officer

$6.00M

@ $582.41 · 2024-05-24

RUNKEL JOHN F JR

General Counsel

$3.08M

@ $579.37 · 2024-04-03

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

SNPS Investment Checklist & Notes

Learn more →

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:30:31 AM

Synopsys, Inc. (SNPS) Stock Overview

Rewards

Risks

SNPS Key Valuation Metrics

SNPS Historical Fundamentals

SNPS $1 Retained Earnings Test

SNPS Discounted Cash Flow (DCF) Analysis

Reverse DCF — Market-Implied Growth

SNPS Economic Moat Score

SNPS Forensic Accounting

M-Score Trend

SNPS Management & Board

SNPS Ownership

SNPS Insider Buying Activity

SNPS Insider Selling Activity

SNPS 🎭 Mr. Market's Mood

SNPS ⚖️ Buffett Signal

Compare SNPS

SNPS Investment Checklist & Notes

SNPS Insider Buying Activity

SNPS Insider Selling Activity

SNPS Investment Checklist & Notes