Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Synopsys Inc., EBITDA calculation

US$ in thousands

12 months ended:	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income attributed to Synopsys	2,263,380)	1,229,888)	984,594)	757,516)	664,347)	532,367)
Add: Net income attributable to noncontrolling interest	(27,570)	(11,763)	(6,158)	(1,157)	(900)	—)
Less: Income from discontinued operations, net of income taxes	821,670)	—)	—)	—)	—)	—)
Add: Income tax expense	99,718)	83,657)	137,078)	49,155)	(25,288)	13,139)
Earnings before tax (EBT)	1,513,858)	1,301,782)	1,115,514)	805,514)	638,159)	545,506)
Add: Interest expense	35,161)	1,178)	1,698)	3,365)	5,140)	11,659)
Earnings before interest and tax (EBIT)	1,549,019)	1,302,960)	1,117,212)	808,879)	643,299)	557,165)
Add: Amortization and depreciation	295,065)	247,120)	228,405)	203,676)	209,986)	201,676)
Earnings before interest, tax, depreciation and amortization (EBITDA)	1,844,084)	1,550,080)	1,345,617)	1,012,555)	853,285)	758,841)

Based on: 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Synopsys Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

Synopsys Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	65,531,275)
Earnings before interest, tax, depreciation and amortization (EBITDA)	1,844,084)
Valuation Ratio
EV/EBITDA	35.54
Benchmarks
EV/EBITDA, Competitors¹
Accenture PLC	17.12
Adobe Inc.	21.02
Cadence Design Systems Inc.	43.08
CrowdStrike Holdings Inc.	300.28
International Business Machines Corp.	22.34
Intuit Inc.	37.95
Microsoft Corp.	21.82
Oracle Corp.	22.76
Palantir Technologies Inc.	405.74
Palo Alto Networks Inc.	94.42
Salesforce Inc.	23.70
ServiceNow Inc.	72.46
Workday Inc.	57.21
EV/EBITDA, Sector
Software & Services	25.21
EV/EBITDA, Industry
Information Technology	28.47

Based on: 10-K (reporting date: 2024-10-31).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Synopsys Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	72,228,982)	84,619,155)	49,419,269)	54,103,071)	36,044,325)	20,471,792)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	1,844,084)	1,550,080)	1,345,617)	1,012,555)	853,285)	758,841)
Valuation Ratio
EV/EBITDA³	39.17	54.59	36.73	53.43	42.24	26.98
Benchmarks
EV/EBITDA, Competitors⁴
Accenture PLC	19.87	17.26	14.25	23.31	17.46	15.60
Adobe Inc.	22.06	34.07	22.32	35.44	43.06	41.16
Cadence Design Systems Inc.	42.25	55.61	42.11	39.61	45.75	—
CrowdStrike Holdings Inc.	262.20	—	—	—	—	—
International Business Machines Corp.	22.90	14.41	22.17	12.53	12.28	—
Intuit Inc.	38.55	38.71	36.22	51.96	35.70	34.27
Microsoft Corp.	23.66	22.92	20.17	24.59	21.74	17.21
Oracle Corp.	21.81	21.80	17.12	13.78	11.54	11.83
Palantir Technologies Inc.	551.39	175.93	—	—	—	—
Palo Alto Networks Inc.	84.17	85.08	515.19	—	349.99	117.18
Salesforce Inc.	31.64	38.31	38.88	33.83	49.45	—
ServiceNow Inc.	87.89	96.48	104.30	147.45	220.91	—
Workday Inc.	86.37	216.44	147.90	670.04	—	—
EV/EBITDA, Sector
Software & Services	27.09	25.22	22.55	25.68	23.25	—
EV/EBITDA, Industry
Information Technology	27.60	23.59	18.31	20.49	19.71	—

¹ See details »

² See details »

³ 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 72,228,982 ÷ 1,844,084 = 39.17

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Synopsys Inc. EV/EBITDA ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Synopsys Inc. (NASDAQ:SNPS)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical