Synopsys, Inc.Opportunity Rank #286(SNPS) Intrinsic Value & DCF Analysis (2026)
Current Price
$464.58
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
+5 vs previous
Trend Score
As of 2026-06-22
The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $243.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $464.58, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $243.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $464.58, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value.
- Improvement in ROIC versus WACC spread for sustained periods.
- Meaningful shifts in the narrative score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Synopsys, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Synopsys, Inc.Technology
Synopsys, Inc. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.