Market Pulse44Neutral

Synopsys, Inc.Opportunity Rank #286(SNPS) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$464.58

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$464.58
Price
$243.60
Intrinsic Value
Overvalued by 48%MOS: $194.88

Fundamental Score

31/100
Bearish

Weighted across 6 signals

Narrative Score

64/100
Improving

+5 vs previous

Trend Score

39/100
Weak

As of 2026-06-22

The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $243.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $464.58, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Synopsys, Inc. (SNPS) is estimated at $243.60 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $464.58, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 9.34% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$243.60
-47.57% downside
20% margin of safety: $194.88
Years: 10Growth Rate: 5.97%
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Capital Efficiency

Average Quarterly ROIC
0.89%
Cost of Capital (estimated)8%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

31/100
BearishWeighted across 6 signals
DCF Discount
47.6% premium to price
0
FCF Yield
3.4% trailing FCF yield
34
ROIC vs WACC
ROIC 0.9% vs WACC 8.0% (0.1x)
6
Net Debt / FCF
2.5x net debt to FCF
15
Buybacks
Share count growing
30
FCF CAGR (5Y)
21.1% 5Y FCF CAGR
100
Strengths: FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.

Narrative Details

64/100
Improving
+5 vs previous · +2 new driversVs 6-Month Baseline:Below Avg (33rd pct)Weighted across 6 recent drivers
Trend: StableConfidence: 97%Updated: 1h ago
Sources: 90 (77 News · 13 Analyst)
Drivers(last 30 days)
60 news sentiment+0.7
Analyst upgrades+0.3
12 regulatory scrutiny+0.2
2 margin pressure+0.1
Upgrade headlines+0.0
2 earnings beat+0.0

Trend Details

39/100
WeakAs of 2026-06-22308 daily bars used
6M Relative Strength vs SPY-8.3%
3M Relative Strength vs SPY-4.2%
Price vs 21 EMA-1.7%
Price vs 21 EMA40 · -1.7%
Price vs 50 EMA41 · -1.7%
21 EMA vs 50 EMA50 · -0.1%
3M RS vs SPY33 · -4.2%
6M RS vs SPY28 · -8.3%
Distance from 52W High44 · -28.0%

Investment Coach

Updating... 12d ago
AVOIDConfidence: 76%
Thesis
Synopsys, Inc. is currently overvalued by approximately 45% relative to its estimated fair value, with weak fundamentals and returns trailing its cost of capital. Despite a supportive narrative score, the deteriorating trend and bearish fundamental indicators suggest caution.
Key Risk
The primary risk is that the company's return on invested capital remains below its weighted average cost of capital, undermining value creation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value.
  • Improvement in ROIC versus WACC spread for sustained periods.
  • Meaningful shifts in the narrative score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 5.97%5 Year CAGR: 13.57%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$3,001$1,688$1,530$1,895$1,878$1,588$1,150$1,003$526$708$658$586$658$566$544$501$383$276$373$481$257

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. is a leading provider of electronic design automation (EDA) software, instrumental in the creation and validation of integrated circuits. The company offers a robust portfolio of platforms, including the Fusion Design Platform for digital implementation, and the comprehensive Verification Continuum Platform. The latter provides a suite of solutions such as virtual prototyping, static and formal verification, simulation, emulation, and FPGA-based prototyping with integrated debugging tools. Synopsys also develops FPGA design products, which enable programming for specific functions. A significant part of its business involves intellectual property (IP) solutions. This encompasses IP for widely adopted communication standards like USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth Low Energy. They also furnish analog IP, including data converters and audio codecs, alongside system-on-chip (SoC) infrastructure IP, specialized datapath and building block IP, and verification IP products. Furthermore, their offerings include mathematical and floating-point components, as well as Arm AMBA interconnect fabric and peripherals. Beyond core IP, Synopsys supplies logic libraries, embedded memories, and configurable processor cores, complemented by application-specific instruction-set processor tools for embedded applications. They also develop IP subsystems for audio, sensor, and data fusion functionalities, in addition to specialized security IP solutions. For advanced system design and analysis, Synopsys provides Platform Architect solutions for SoC architecture optimization, along with general virtual prototyping tools and HAPS FPGA-based prototyping systems. Their expertise extends to tools designed for optical systems and photonic devices. In addition to software and IP, the company delivers a range of services, including security testing, managed services, professional programs, and training. These services are designed to help customers identify and resolve security vulnerabilities and defects across the software development lifecycle. Manufacturing solutions are also part of their extensive offerings. Synopsys serves a diverse global client base, with applications across electronics, financial services, automotive, medicine, energy, and various industrial sectors. The company was founded in 1986 and is headquartered in Mountain View, California.