Synopsys Inc (SNPS) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivi...
Synopsys Inc (SNPS) currently trades at a P/E ratio of 80.93 (historical range: 28.20–132.44, median: 58.86), placing it at the 92th percentile — expensive relative to its history, P/S ratio of 9.25 (range: 7.48–16.20, 6th percentile — cheap relative to its history), EV/EBITDA of 118.33 (range: 35.55–180.19, 95th percentile).
Synopsys Inc trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 80.93 | 58.86 | 92th | expensive relative to its history |
| P/S Ratio | 9.25 | 11.97 | 6th | cheap relative to its history |
| EV/EBITDA | 118.33 | 62.53 | 95th | expensive relative to its history |
| FCF Yield | 3.15% | 2.23% | 88th | cheap relative to its history |
Synopsys Inc (SNPS) Valuation & P/E History
Synopsys Inc (SNPS) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry currently trading at $452.45 with a market capitalization of $86.7 billion. This page provides historical valuation analysis for SNPS based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 80.93 is above the historical median of 58.86, placing SNPS at the 92th percentile of its valuation range. The P/S ratio of 9.25 compares to a median of 11.97.
SNPS Valuation Metrics & Historical Range
The valuation table above shows Synopsys Inc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether SNPS is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests SNPS is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Synopsys Inc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is SNPS Overvalued or Undervalued?
Synopsys Inc trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 64 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive SNPS is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full SNPS analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.SNPS trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.