What is Synopsys, Inc. (SNPS) DCF Fair Value and Intrinsic Value in 2026?

Synopsys, Inc. (SNPS) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Synopsys, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Synopsys, Inc. operates in the Technology sector (Software - Infrastructure) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Synopsys, Inc.'s financial health rating and Piotroski F-Score?

Synopsys, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Synopsys, Inc. (SNPS) for quarterly SEC filing thesis breaks?

LocalAlpha audits Synopsys, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksSNPS

SNPS

Synopsys, Inc.Technology / Software - InfrastructureINTACT

Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.

Share Price

$397.38

52W: $366 - $539.48

DCF Fair Value

$331.04

-20% Premium

Thesis Hub

P/E (TTM)

69.5x

ROIC

10.9%

Operating Margin

14.5%

FCF Yield

4.5%

Debt / Equity

0.35x

Piotroski Score

7/9

Altman Z-Score

2.98

Market Cap

$76.2B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($331.04)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$331.04

MOS Buy Target (-25%)

$248.28

Valuation Overlays: DCF Fair Value ($331.04) 25% MOS Buy Target ($248.28) Revised Graham ($101.72) Graham Number ($144.65)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$397.38

DCF Fair Value

$331.11

-20% Premium

Starting Free Cash Flow ($M)$3,426M

$100M$3,426M (Reported)$50,000M

Stage 1 Growth (Years 1-5)7.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$7,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$30.3B

PV of Terminal Value

$40.4B

Implied Enterprise Value

$70.8B

Implied Equity Value

$63.6B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,676	$3,944	$4,232	$4,541	$4,873	$5,092	$5,321	$5,561	$5,811	$6,073
Present Value (PV)	$3,373	$3,320	$3,268	$3,217	$3,167	$3,036	$2,911	$2,791	$2,676	$2,565

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-174.7% Premium

$144.66

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.72BVPS: $162.59

Revised Graham Formula-290.7% Premium

$101.72

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4.3% Yield

$16.95 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $3.3BYield: 4.3%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

7.1% CAGR (Next 10 Yrs)

At the current price of $397.38, the market is assuming the business will compound Free Cash Flow at 7.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil SNPS with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Synopsys, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 14.5% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Synopsys, Inc. (SNPS) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Synopsys, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Synopsys, Inc. has an estimated DCF intrinsic fair value of $331.04 per share compared to its current market price of $397.38. This represents an estimated 20.0% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $144.65.