Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Synopsys Inc., FCFF 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)
Net loss attributed to non-controlling interest and redeemable non-controlling interest	(27,570)	(11,763)	(6,158)	(1,157)	(900)	—)
Net noncash charges	(121,209)	812,489)	819,799)	606,082)	516,324)	344,424)
Net changes in operating assets and liabilities, net of effects from acquisitions and dispositions	(707,572)	(327,340)	(59,335)	130,181)	(188,458)	(76,278)
Net cash provided by operating activities	1,407,029)	1,703,274)	1,738,900)	1,492,622)	991,313)	800,513)
Interest payments during the year, net of tax¹	760)	932)	1,103)	3,160)	4,057)	12,065)
Purchases of property and equipment, net	(123,161)	(189,618)	(136,589)	(93,764)	(154,717)	(198,129)
Free cash flow to the firm (FCFF)	1,284,628)	1,514,588)	1,603,414)	1,402,018)	840,653)	614,449)

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).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Synopsys Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Synopsys Inc. FCFF decreased from 2022 to 2023 and from 2023 to 2024.

Interest Paid, Net of Tax

Synopsys Inc., interest paid, net of tax 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
Effective Income Tax Rate (EITR)
EITR¹	6.59%	6.43%	12.29%	6.10%	21.00%	2.41%
Interest Paid, Net of Tax
Interest payments during the year, before tax	814)	996)	1,258)	3,365)	5,136)	12,363)
Less: Interest payments during the year, tax²	54)	64)	155)	205)	1,079)	298)
Interest payments during the year, net of tax	760)	932)	1,103)	3,160)	4,057)	12,065)

¹ See details »

² 2024 Calculation
Interest payments during the year, tax = Interest payments during the year × EITR
= 814 × 6.59% = 54

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Enterprise Value to FCFF Ratio, Current

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	72,048,124)
Free cash flow to the firm (FCFF)	1,284,628)
Valuation Ratio
EV/FCFF	56.08
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	26.17
Adobe Inc.	27.42
Autodesk Inc.	49.07
Cadence Design Systems Inc.	64.47
CrowdStrike Holdings Inc.	91.51
International Business Machines Corp.	17.98
Intuit Inc.	37.94
Microsoft Corp.	50.91
Oracle Corp.	36.60
Palantir Technologies Inc.	258.09
Palo Alto Networks Inc.	38.95
Salesforce Inc.	33.48
ServiceNow Inc.	81.34
EV/FCFF, Sector
Software & Services	47.22
EV/FCFF, Industry
Information Technology	54.73

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

¹ Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

Synopsys Inc., historical EV/FCFF 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)
Free cash flow to the firm (FCFF)²	1,284,628)	1,514,588)	1,603,414)	1,402,018)	840,653)	614,449)
Valuation Ratio
EV/FCFF³	56.23	55.87	30.82	38.59	42.88	33.32
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	25.76	20.26	16.99	24.76	17.90	18.49
Adobe Inc.	—	37.75	20.82	33.61	40.43	40.48
Autodesk Inc.	36.00	20.48	27.63	41.13	23.38	98.38
Cadence Design Systems Inc.	—	63.83	44.54	35.05	44.13	29.35
CrowdStrike Holdings Inc.	81.46	38.65	96.35	141.44	807.14	—
International Business Machines Corp.	—	15.27	16.47	13.10	9.35	12.86
Intuit Inc.	36.79	31.28	32.85	48.64	37.90	33.30
Microsoft Corp.	49.30	41.75	32.31	38.37	33.99	26.37
Oracle Corp.	31.24	35.83	31.60	16.36	14.99	14.03
Palantir Technologies Inc.	—	69.13	82.97	66.45	—	—
Palo Alto Networks Inc.	34.69	28.15	29.30	32.74	26.50	20.44
Salesforce Inc.	29.95	28.41	35.97	44.91	39.63	41.21
ServiceNow Inc.	—	56.49	40.86	60.13	83.74	67.96
EV/FCFF, Sector
Software & Services	—	35.52	29.64	32.41	27.80	23.61
EV/FCFF, Industry
Information Technology	—	34.45	27.35	28.28	24.52	19.89

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 72,228,982 ÷ 1,284,628 = 56.23

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Synopsys Inc. EV/FCFF ratio increased from 2022 to 2023 and from 2023 to 2024.

Synopsys Inc. (NASDAQ:SNPS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical