Market Pulse50Neutral

Synopsys, Inc.Opportunity Rank #277(SNPS) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$432.48

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$432.48
Price
$250.99
Intrinsic Value
Overvalued by 42%MOS: $200.79

Fundamental Score

34/100
Bearish

Weighted across 6 signals

Narrative Score

80/100
Strong

No change vs previous

The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $250.99 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $432.48, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.85% long-term growth rate and a 9.11% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $250.99 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $432.48, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.85% long-term growth rate and a 9.11% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$250.99
-41.96% downside
20% margin of safety: $200.79
Years: 10Growth Rate: 5.85%
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Capital Efficiency

Average Quarterly ROIC
2.69%
Cost of Capital (estimated)8%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

34/100
BearishWeighted across 6 signals
DCF Discount
42.0% premium to price
0
FCF Yield
3.1% trailing FCF yield
29
ROIC vs WACC
ROIC 2.7% vs WACC 8.0% (0.3x)
17
Net Debt / FCF
3.0x net debt to FCF
0
Buybacks
Share count flat
50
FCF CAGR (5Y)
17.8% 5Y FCF CAGR
100
Strengths: FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.

Narrative Details

80/100
Strong
Vs 6-Month Baseline:High (89th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 1h ago
Sources: 129 (123 News · 6 Analyst)
Drivers(last 30 days)
72 news sentiment+2.7
46 regulatory scrutiny+1.5
Margin pressure+0.1
2 analyst downgrades-0.0
Macro headwinds+0.0
3 legal risk-0.0

Investment Coach

Updated 14h ago
AVOIDConfidence: 76%
Thesis
Synopsys, Inc. is currently overvalued by approximately 40% with weak fundamentals and returns trailing its cost of capital despite a strong narrative score. The company's free cash flow growth is robust, but its return on invested capital significantly underperforms its weighted average cost of capital.
Key Risk
The primary risk is that the company's fundamental weaknesses persist or worsen, preventing a recovery in valuation and returns.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value
  • Improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 5.85%5 Year CAGR: 10.42%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$2,607$1,688$1,530$1,895$1,878$1,588$1,150$1,003$526$708$658$586$658$566$544$501$383$276$373$481$257

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. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform that provides digital design implementation solutions; Verification Continuum Platform that provides virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, it provides Platform Architect solutions for SoC architecture analysis and optimization; virtual prototyping solutions; and HAPS FPGA-based prototyping systems, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California.