Synopsys, Inc. (SNPS) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Infrastructure
EV/EBITDA
↓
68.53
↑+45% vs avg
5yr avg: 47.11
30Y Low6.7·High61.4
P/FCF
↑
71.57
↑+55% vs avg
5yr avg: 46.22
30Y Low9.3·High62.4
P/B Ratio
↓
2.88
↓-65% vs avg
5yr avg: 8.28
30Y Low1.7·High11.8
ROE
↓
7.1%
↑-61% vs avg
5yr avg: 18.2%
30Y Low-25%·High30%
Debt/EBITDA
↑
9.07
↑+308% vs avg
5yr avg: 2.22
30Y Low0.0·High9.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SNPS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Synopsys, Inc. trades at 62.7x earnings, 18% above its 5-year average of 53.4x, sitting at the 86th percentile of its historical range. Compared to the Technology sector median P/E of 27.5x, the stock trades at a premium of 128%. On a free-cash-flow basis, the stock trades at 71.6x P/FCF, 55% above the 5-year average of 46.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $96.6B | $73.4B | $80.1B | $72.9B | $45.8B | $52.4B | $33.3B | $20.9B | $13.7B | $13.4B | $9.2B |
| Enterprise Value | $108.0B | $84.8B | $76.9B | $72.1B | $45.0B | $51.7B | $32.7B | $20.3B | $13.5B | $12.5B | $8.4B |
| P/E Ratio → | 62.73 | 56.45 | 35.40 | 59.27 | 46.51 | 69.27 | 50.08 | 39.35 | 31.75 | 98.32 | 34.28 |
| P/S Ratio | 13.69 | 10.40 | 13.07 | 13.70 | 9.92 | 12.47 | 9.04 | 6.23 | 4.40 | 4.92 | 3.79 |
| P/B Ratio | 2.88 | 2.59 | 8.88 | 11.78 | 8.23 | 9.89 | 6.78 | 5.12 | 3.94 | 4.09 | 2.87 |
| P/FCF | 71.57 | 54.39 | 62.39 | 48.20 | 28.62 | 37.53 | 40.00 | 34.99 | 42.61 | 23.88 | 17.80 |
| P/OCF | 63.58 | 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
SNPS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Synopsys, Inc.'s enterprise value stands at 68.5x EBITDA, 45% above its 5-year average of 47.1x. The Technology sector median is 17.4x, placing the stock at a 295% premium on an enterprise-value basis.
| 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 | 68.53 | 53.82 | 46.57 | 47.42 | 32.69 | 55.04 | 39.42 | 28.18 | 23.67 | 23.27 | 16.03 |
| EV / EBIT | 118.00 | 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 |
SNPS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Synopsys, Inc. earns an operating margin of 13.0%. Operating margins have compressed from 23.9% to 13.0% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 7.1% is modest. ROIC of 3.0% represents below-average returns on invested capital.
Margins
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% |
Return on Capital
| 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% |
SNPS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Synopsys, Inc. carries a Debt/EBITDA ratio of 9.1x, which is highly leveraged (216% above the sector average of 2.9x). Net debt stands at $11.4B ($14.3B total debt minus $2.9B cash). Interest coverage of just 2.0x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 | 2.05 | 2.05 | 36.81 | 471.05 | 676.51 | 218.36 | 120.65 | 44.62 | 23.08 | 47.59 | 84.17 |
SNPS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.62x means Synopsys, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.15x to 1.62x over the past 3 years.
| 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 |
SNPS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Synopsys, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 1.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.8% | 2.8% | 1.7% | 2.2% | 1.4% | 2.0% | 2.5% | 3.1% | 1.0% | 2.9% |
| FCF Yield | 1.4% | 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 |
Peer Comparison
Compare SNPS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SNPSYou | $97B | 62.7 | 68.5 | 71.6 | 77.0% | 13.0% | 7.1% | 3.0% | 9.1 |
 CDNS | $98B | 87.4 | 51.7 | 61.7 | 86.4% | 31.1% | 21.9% | 25.9% | 1.3 |
 COHU | $2B | -31.2 | — | 217.2 | 34.5% | -13.3% | -9.0% | -5.7% | — |
 ONTO | $15B | 105.8 | 73.9 | 48.8 | 49.7% | 13.2% | 6.8% | 5.7% | 0.1 |
 FORM | $12B | 216.1 | 104.1 | 990.2 | 39.1% | 8.2% | 5.5% | 5.4% | 0.4 |
 PLAB | $3B | 22.8 | 8.8 | 50.3 | 35.3% | 24.5% | 8.9% | 15.5% | 0.0 |
 CEVA | $832M | -93.7 | — | 1613.2 | 88.1% | -7.1% | -3.3% | -2.3% | — |
 NVDA | $5.0T | 42.4 | 37.9 | 52.2 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 INTC | $567B | -1918.7 | 51.3 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 AMD | $687B | 159.0 | 102.4 | 102.0 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 AMAT | $340B | 49.5 | 40.4 | 59.7 | 48.7% | 29.2% | 35.5% | 33.3% | 0.8 |
| Technology Median | — | 27.5 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonSNPS — Frequently Asked Questions
Quick answers to the most common questions about buying SNPS stock.
What is Synopsys, Inc.'s P/E ratio?
Synopsys, Inc.'s current P/E ratio is 62.7x. The historical average is 45.0x. This places it at the 86th percentile of its historical range.
What is Synopsys, Inc.'s EV/EBITDA?
Synopsys, Inc.'s current EV/EBITDA is 68.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
What is Synopsys, Inc.'s ROE?
Synopsys, Inc.'s return on equity (ROE) is 7.1%. The historical average is 10.7%.
Is SNPS stock overvalued?
Based on historical data, Synopsys, Inc. is trading at a P/E of 62.7x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Synopsys, Inc.'s profit margins?
Synopsys, Inc. has 77.0% gross margin and 13.0% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Synopsys, Inc. have?
Synopsys, Inc.'s Debt/EBITDA ratio is 9.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.