Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Synopsys Inc., FCFE calculation

US$ in thousands

Microsoft Excel
12 months ended: Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Net income attributed to Synopsys 1,229,888 984,594 757,516 664,347 532,367 432,518
Net loss attributed to non-controlling interest and redeemable non-controlling interest (11,763) (6,158) (1,157) (900) — —
Net noncash charges 812,489 819,799 606,082 516,324 344,424 142,204
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities (327,340) (59,335) 130,181 (188,458) (76,278) (150,490)
Net cash provided by operating activities 1,703,274 1,738,900 1,492,622 991,313 800,513 424,232
Proceeds from sale of property and equipment — — — — — 1,662
Purchases of property and equipment (189,618) (136,589) (93,764) (154,717) (198,129) (98,976)
Proceeds from credit facilities — — — 276,489 192,897 620,635
Repayment of debt (2,603) (76,838) (28,061) (288,879) (524,063) (295,313)
Free cash flow to equity (FCFE) 1,511,053 1,525,473 1,370,797 824,206 271,218 652,240

Based on: 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), 10-K (reporting date: 2018-10-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Synopsys Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Synopsys Inc. FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Price to FCFE Ratio, Current

Synopsys Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 153,613,744
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 1,511,053
FCFE per share 9.84
Current share price (P) 534.02
Valuation Ratio
P/FCFE 54.29
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.43
Adobe Inc. 34.14
Autodesk Inc. 52.41
Cadence Design Systems Inc. 71.67
CrowdStrike Holdings Inc. 93.21
International Business Machines Corp. 11.48
Intuit Inc. 39.73
Microsoft Corp. 41.61
Oracle Corp. 64.30
Palo Alto Networks Inc. 61.13
Salesforce Inc. 40.22
ServiceNow Inc. 77.87
P/FCFE, Sector
Software & Services 41.88
P/FCFE, Industry
Information Technology 51.78

Based on: 10-K (reporting date: 2023-10-31).

1 Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Synopsys Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
No. shares of common stock outstanding1 151,986,878 152,417,194 153,438,336 153,032,497 150,534,877 149,515,012
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 1,511,053 1,525,473 1,370,797 824,206 271,218 652,240
FCFE per share3 9.94 10.01 8.93 5.39 1.80 4.36
Share price1, 4 567.06 334.34 362.23 242.74 139.88 85.63
Valuation Ratio
P/FCFE5 57.04 33.41 40.55 45.07 77.64 19.63
Benchmarks
P/FCFE, Competitors6
Accenture PLC 21.03 17.91 25.76 19.01 19.50 —
Adobe Inc. 41.83 21.32 34.26 41.36 41.90 19.87
Autodesk Inc. 25.55 16.66 64.43 24.07 41.92 —
Cadence Design Systems Inc. 71.40 33.41 36.31 45.86 36.04 —
CrowdStrike Holdings Inc. 42.65 99.63 41.38 880.68 — —
International Business Machines Corp. 9.97 11.97 48.45 9.43 4.39 —
Intuit Inc. 38.74 13.86 86.74 17.36 34.61 —
Microsoft Corp. 43.32 36.73 42.54 42.74 30.77 —
Oracle Corp. 15.47 — 8.36 6.27 22.31 —
Palo Alto Networks Inc. 79.75 29.54 32.91 8.11 46.20 —
Salesforce Inc. 31.06 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 58.13 44.44 64.54 49.83 68.98 —
P/FCFE, Sector
Software & Services 32.73 30.44 33.85 25.89 22.16 —
P/FCFE, Industry
Information Technology 33.47 26.69 27.52 23.46 19.14 —

Based on: 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), 10-K (reporting date: 2018-10-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,511,053,000 ÷ 151,986,878 = 9.94

4 Closing price as at the filing date of Synopsys Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 567.06 ÷ 9.94 = 57.04

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Synopsys Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.