Synopsys, Inc.Opportunity Rank #277(SNPS) Intrinsic Value & DCF Analysis (2026)
Current Price
$432.48
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
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
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
Investment Coach
- 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
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. 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.