Synopsys (SNPS)
Forward P/E is 26.86x against a peer median of 17.03x, a ratio of 1.58x — above the 1.3x overvalued threshold — with trailing P/E 84.12x. The growth exception does not clear it: latest-quarter revenue grew +42.4% year over year (PRIMARY, SEC filings/EDGAR), very strong and well above the application software cluster median of +14.9%, but short of the +50% exceptional bar, and PEG is 1.07, not below about 1. The delivered growth pays for part of the 58% premium, not all of it, and the ratio stays short of the 1.75x bubble threshold.
What would change this label: Moves to FAIRLY PRICED if revenue growth sustains at +50% YoY or better with PEG at or below about 1.0, or if the forward P/E compresses below about 19.6x (1.15x the current peer median) at unchanged growth; moves toward BUBBLE if the forward P/E rises above about 29.8x (1.75x the peer median) while growth slows below +20% YoY.
Synopsys' shares cost about 27 times next year's expected earnings, well above similar software companies at about 17 times. Its sales grew about 42%, which is excellent and explains part of that higher price — just not all of it. On these numbers the shares are overvalued, though the strong growth keeps it well short of bubble territory.
Both lines start at 100 on 2020-09-01. Over the full window Synopsys returned +110.54% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Synopsys: -43.0% (2025-07-30 to 2026-09-15). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 26.86x against a peer median of 17.03x, a ratio of 1.58x — above the 1.3x overvalued threshold — with trailing P/E 84.12x. The growth exception does not clear it: latest-quarter revenue grew +42.4% year over year (PRIMARY, SEC filings/EDGAR), very strong and well above the application software cluster median of +14.9%, but short of the +50% exceptional bar, and PEG is 1.07, not below about 1. The delivered growth pays for part of the 58% premium, not all of it, and the ratio stays short of the 1.75x bubble threshold. The company’s forward P/E is 26.9× against a peer median of 17.0×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Application software group's median latest-quarter revenue growth was 14.9% year over year (SEC filings) — demand rising. Latest-quarter sales growth was +42.4% versus a year earlier (SEC filings).
| Company | Price (Oct 27, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Synopsys (SNPS) | $474.42 | 26.9× | 84.1× |
| INTU | $328.07 | 13.8× | 19.9× |
| CDNS | $336.92 | 35.8× | 67.0× |
| ADBE | $248.09 | 9.2× | 13.8× |
| DDOG | $280.37 | 105.7× | 571.6× |
| WDAY | $205.46 | 17.0× | 42.3× |
| Peer median | 17.0× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jul 2026 2026-07-31 | $2.5B | 72.6% | $546M | 2.84 | $746M |
| Q/E Apr 2026 2026-04-30 | $2.3B | 72.3% | $17M | 0.09 | $575M |
| Q/E Jan 2026 2026-01-31 | $2.4B | 73.5% | $65M | 0.34 | $822M |
| Q/E Oct 2025 2025-10-31 | $2.3B | 71.0% | $449M | — | $605M |
| Q/E Jul 2025 2025-07-31 | $1.7B | 78.1% | $243M | 1.50 | $632M |
| Q/E Apr 2025 2025-04-30 | $1.6B | 80.2% | $345M | 2.21 | $220M |
| Q/E Jan 2025 2025-01-31 | $1.5B | 81.5% | $296M | 1.89 | $-108M |
| Q/E Oct 2024 2024-10-31 | $1.6B | 77.1% | $1.1B | — | $558M |
| Q/E Jul 2024 2024-07-31 | $1.5B | 81.0% | $408M | 2.61 | $415M |
| Q/E Apr 2024 2024-04-30 | $1.5B | 79.3% | $292M | 1.88 | $438M |
| Q/E Jan 2024 2024-01-31 | $1.6B | 80.0% | $449M | 2.89 | $-128M |
| Q/E Oct 2023 2023-10-31 | $1.6B | 79.2% | $349M | — | $273M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | SYNOPSYS INC |
| Chief executive | Sassine Ghazi (source: https://www.synopsys.com/company/management-team/sassine-ghazi-bio.html) |
| Sector | Technology — Application Software — sells electronic design automation software used to design chips and systems |
| Share price (Oct 27, 2026) | $474.42 |
| Market value (market cap) | $90.9B — share price times shares outstanding of 191,636,646 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $9.4B |
| Net income, last twelve months | $1.1B |
| Free cash flow, last twelve months | $2.7B |
| Latest reported quarter | Q/E Jul 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +110.54% vs +118.28% |
| Worst peak-to-trough fall | -43.0% (2025-07-30 to 2026-09-15) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Brief fetch note: browser.open of the statistics page failed with a 429 rate-limit error; values were recorded from the stockanalysis.com Statistics & Valuation result returned by browser.search.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000883241.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000883241.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/SNPS/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.