Latest Ratios: P/E Ratio 50.0x · EV/EBITDA 56.1x · ROE 7.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $76.9B | $73.4B | $80.1B | $72.9B | $45.8B | $52.4B | $33.3B | $20.9B | $13.7B | $13.4B | $9.2B |
| Enterprise Value | $88.4B | $84.8B | $76.9B | $72.1B | $45.0B | $51.7B | $32.7B | $20.3B | $13.5B | $12.5B | $8.4B |
| P/E Ratio → | 49.98 | 56.45 | 35.40 | 59.27 | 46.51 | 69.27 | 50.08 | 39.35 | 31.75 | 98.32 | 34.28 |
| P/S Ratio | 10.91 | 10.40 | 13.07 | 13.70 | 9.92 | 12.47 | 9.04 | 6.23 | 4.40 | 4.92 | 3.79 |
| P/B Ratio | 2.29 | 2.59 | 8.88 | 11.78 | 8.23 | 9.89 | 6.78 | 5.12 | 3.94 | 4.09 | 2.87 |
| P/FCF | 57.03 | 54.39 | 62.39 | 48.20 | 28.62 | 37.53 | 40.00 | 34.99 | 42.61 | 23.88 | 17.80 |
| P/OCF | 50.67 | 48.32 | 56.92 | 42.77 | 26.33 | 35.12 | 33.59 | 26.15 | 32.37 | 21.12 | 15.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.02 | 12.55 | 13.56 | 9.75 | 12.29 | 8.88 | 6.05 | 4.32 | 4.59 | 3.47 |
| EV / EBITDA | 56.08 | 53.82 | 46.57 | 47.42 | 32.69 | 55.04 | 39.42 | 28.18 | 23.67 | 23.27 | 16.03 |
| EV / EBIT | 96.57 | 46.08 | 49.58 | 55.11 | 40.74 | 63.86 | 50.87 | 36.51 | 35.55 | 32.01 | 25.22 |
| EV / FCF | — | 62.84 | 59.88 | 47.70 | 28.14 | 36.98 | 39.31 | 34.01 | 41.82 | 22.27 | 16.30 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.0% | 77.0% | 79.7% | 80.6% | 80.5% | 79.5% | 78.4% | 77.6% | 76.4% | 76.0% | 77.6% |
| Operating Margin | 13.0% | 13.0% | 22.1% | 23.9% | 24.9% | 17.5% | 16.8% | 15.5% | 11.5% | 12.8% | 13.1% |
| Net Profit Margin | 18.9% | 18.9% | 36.9% | 23.1% | 21.3% | 18.0% | 18.0% | 15.8% | 13.9% | 5.0% | 11.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.1% | 7.1% | 29.8% | 20.9% | 18.1% | 14.8% | 14.8% | 14.1% | 12.8% | 4.2% | 8.4% |
| ROA | 4.3% | 4.3% | 19.3% | 12.5% | 10.8% | 9.0% | 9.2% | 8.5% | 7.5% | 2.6% | 5.2% |
| ROIC | 3.0% | 3.0% | 18.1% | 18.7% | 18.5% | 12.4% | 11.9% | 11.6% | 9.6% | 10.9% | 9.7% |
| ROCE | 3.3% | 3.3% | 15.3% | 18.2% | 17.7% | 12.0% | 11.8% | 12.0% | 9.2% | 9.5% | 9.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.50 | 0.50 | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | 0.13 | 0.04 | 0.06 |
| Debt / EBITDA | 9.07 | 9.07 | 0.41 | 0.45 | 0.48 | 0.71 | 0.80 | 0.19 | 0.82 | 0.27 | 0.39 |
| Net Debt / Equity | — | 0.40 | -0.36 | -0.12 | -0.14 | -0.14 | -0.12 | -0.14 | -0.07 | -0.28 | -0.24 |
| Net Debt / EBITDA | 7.24 | 7.24 | -1.95 | -0.50 | -0.55 | -0.82 | -0.69 | -0.82 | -0.45 | -1.68 | -1.47 |
| Debt / FCF | — | 8.45 | -2.50 | -0.50 | -0.48 | -0.55 | -0.69 | -0.99 | -0.79 | -1.61 | -1.50 |
| Interest Coverage | 4.12 | 4.12 | 42.11 | 483.97 | 650.85 | 240.38 | 125.16 | 47.79 | 24.29 | 53.46 | 88.39 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.62 | 1.62 | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | 0.73 | 1.04 | 1.00 |
| Quick Ratio | 1.52 | 1.52 | 2.30 | 1.04 | 1.01 | 1.07 | 1.10 | 0.91 | 0.68 | 1.02 | 0.99 |
| Cash Ratio | 0.80 | 0.80 | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | 0.34 | 0.65 | 0.65 |
| Asset Turnover | — | 0.15 | 0.47 | 0.51 | 0.49 | 0.48 | 0.46 | 0.52 | 0.51 | 0.50 | 0.46 |
| Inventory Turnover | 4.45 | 4.45 | 3.44 | 3.17 | 4.24 | 3.76 | 4.13 | 5.32 | 6.01 | 21.68 | 49.32 |
| Days Sales Outstanding | — | 77.89 | 55.66 | 58.80 | 62.95 | 49.36 | 80.53 | 60.16 | 64.81 | 60.43 | 66.12 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 1.8% | 2.8% | 1.7% | 2.2% | 1.4% | 2.0% | 2.5% | 3.1% | 1.0% | 2.9% |
| FCF Yield | 1.8% | 1.8% | 1.6% | 2.1% | 3.5% | 2.7% | 2.5% | 2.9% | 2.3% | 4.2% | 5.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 1.6% | 2.4% | 1.4% | 0.7% | 1.6% | 2.9% | 2.8% | 4.4% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 1.6% | 2.4% | 1.4% | 0.7% | 1.6% | 2.9% | 2.8% | 4.4% |
| Shares Outstanding | — | $162M | $156M | $155M | $156M | $157M | $156M | $154M | $153M | $155M | $155M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SNPS stock.
Synopsys, Inc.'s current P/E ratio is 50.0x. The historical average is 45.0x. This places it at the 71th percentile of its historical range.
Synopsys, Inc.'s current EV/EBITDA is 56.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
Synopsys, Inc.'s return on equity (ROE) is 7.1%. The historical average is 10.7%.
Based on historical data, Synopsys, Inc. is trading at a P/E of 50.0x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Synopsys, Inc. has 77.0% gross margin and 13.0% operating margin. Operating margin between 10-20% is typical for established companies.
Synopsys, Inc.'s Debt/EBITDA ratio is 9.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Ansys integration and margin pressure
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Integration Uncertainty
Synopsys trades at a significant premium to its primary peer, with a forward P/E of 29.95 versus Cadence's 83.84, but the PEG ratio of 4.08 suggests the market is pricing in substantial future growth that may be constrained by current integration costs.
The forward EV/EBITDA of 29.40, while lower than the trailing 61.04, still reflects a high multiple for a company with a recently strained operating margin of 14.4%. This valuation appears to be predicated on the successful integration of Ansys and the realization of synergies, as well as the secular growth drivers in AI-driven silicon design. However, the current profitability profile, with a net margin of 22.0% in Q3 FY2026 that is heavily influenced by non-operating items, creates a disconnect between the reported earnings power and the valuation multiples, warranting careful scrutiny of the underlying cash flow generation.
Margin Compression from Structural Shift
Gross margins have contracted by over 800 basis points from their peak to 72.6% in Q3 FY2026, a trend that appears to reflect the integration of lower-margin Ansys hardware and a potential shift in the revenue mix away from pure software.
The operating margin of 14.4% is significantly below historical levels, suggesting that the cost structure is currently misaligned with the new, larger revenue base. This compression is likely driven by the high fixed costs of R&D and the incremental SG&A required to integrate a $35 billion acquisition. The true earning power of the core EDA and IP business is obscured, as the blended margins now include the lower-margin hardware and simulation segments from Ansys, which may require a multi-year period to rationalize.
Capital Efficiency Diluted by Acquisition
Return on Invested Capital has plummeted to 0.7% in Q3 FY2026 from a pre-acquisition level of over 4%, indicating that the massive capital deployed for the Ansys deal is not yet generating commensurate returns.
The ROIC trend shows a clear decay since the acquisition closed, falling from 4.4% in Q2 FY2025 to the current sub-1% level. This is a direct consequence of the balance sheet transformation, where the invested capital base has ballooned while the incremental operating profit from the acquired business has yet to materialize at scale. The ROE of 1.8% similarly reflects this dilution, and investors should monitor whether management can restore capital efficiency to pre-acquisition levels through cost synergies and revenue growth.
Leverage Surge Constrains Financial Flexibility
The debt-to-equity ratio has increased to 0.35 from a pre-acquisition level of 0.07, and the interest coverage ratio has fallen to 6.13, indicating a significantly more leveraged and less flexible balance sheet.
The D/EBITDA ratio of 13.35 in Q3 FY2026, while improved from the prior quarter, remains elevated and suggests that debt service is a material consideration. The sharp decline in interest coverage from over 49x in early FY2024 to 6.13x highlights the increased financial risk profile. This leverage may constrain the company's ability to pursue further strategic acquisitions or weather a potential downturn in semiconductor R&D spending until the Ansys integration is complete and the debt is paid down.
The Misapplied Metric: Trailing P/E
The trailing P/E ratio of 55.05 is the most commonly misapplied metric for Synopsys, as it is heavily distorted by acquisition-related accounting adjustments and volatile non-operating items that obscure the core business's earnings power.
This metric is particularly misleading because net income has swung wildly, from $1.1B in Q4 FY2024 to just $17.1M in Q2 FY2026, driven by items like acquisition-related intangible amortization and fair value adjustments. A more appropriate alternative is the forward P/E or EV/EBITDA, which better reflects the expected earnings trajectory of the combined entity. Furthermore, for a high-growth software company, the PEG ratio is often more informative, though its current level of 4.08 suggests the market may be overestimating the near-term growth rate relative to the valuation.