Synopsys, Inc. (SNPS) P/E Ratio History
Historical price-to-earnings valuation from 1992 to 2026
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of February 28, 2026, Synopsys, Inc. (SNPS) trades at a price-to-earnings ratio of 51.5x, with a stock price of $414.00 and trailing twelve-month earnings per share of $6.81.
The current P/E is roughly in line with its 5-year average of 54.2x. Over the past five years, SNPS's P/E has ranged from a low of 33.1x to a high of 71.2x, placing the current valuation at the 35th percentile of its historical range.
Compared to the Technology sector median P/E of 25.2x, SNPS trades at a 104% premium to its sector peers. The sector includes 345 companies with P/E ratios ranging from 0.0x to 199.1x.
The PEG ratio of 3.82 (P/E divided by -45% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, SNPS commands a significant premium over the S&P 500 median P/E of 26.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our SNPS DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
Peer Comparison
P/E metrics vs. Developer tools and automation peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
SNPSSynopsys, Inc. | $79B | 51.5 | 3.82Best | -45% |
APPNAppian Corporation | $2B | 1333.5 | - | +102%Best |
MLGOMicroAlgo Inc. | $36M | 6.5Lowest | - | +100% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | Sat Jan 31 2026 00:00:00 GM | $465.12 | $6.53 | 71.2x | -42% |
| FY2025 Q4 | Fri Oct 31 2025 00:00:00 GM | $453.82 | $8.02 | 56.6x | -54% |
| FY2025 Q3 | $633.47 | $12.77 | 49.6x | -60% | |
| FY2025 Q2 | Wed Apr 30 2025 00:00:00 GM | $459.01 | $13.88 | 33.1x | -73% |
| FY2025 Q1 | Fri Jan 31 2025 00:00:00 GM | $525.48 | $13.52 | 38.9x | -68% |
| FY2024 Q4 | $513.61 | $14.52 | 35.4x | -71% | |
| FY2024 Q3 | Wed Jul 31 2024 00:00:00 GM | $558.32 | $9.64 | 57.9x | -53% |
| FY2024 Q2 | $530.59 | $9.20 | 57.7x | -53% | |
| FY2024 Q1 | Wed Jan 31 2024 00:00:00 GM | $533.35 | $9.08 | 58.7x | -52% |
| FY2023 Q4 | $469.44 | $7.94 | 59.1x | -52% | |
| FY2023 Q3 | Mon Jul 31 2023 00:00:00 GM | $451.80 | $6.67 | 67.7x | -45% |
| FY2023 Q2 | Sun Apr 30 2023 00:00:00 GM | $371.32 | $5.93 | 62.6x | -49% |
Average P/E for displayed period: 122.9x
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Start ComparisonFrequently Asked Questions
Is SNPS stock overvalued or undervalued?
SNPS trades at 51.5x P/E, near its 5-year average of 54.2x. The 35th percentile ranking places valuation within normal historical bounds.
How does SNPS's valuation compare to peers?
Synopsys, Inc. P/E of 51.5x compares to sector median of 25.2x. The premium reflects expected growth above peers.
What is SNPS's PEG ratio?
SNPS PEG ratio is 3.82. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 1992-2026.