Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Microsoft Excel

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Historical Valuation Ratios (Summary)

Synopsys Inc., historical price multiples (quarterly data)

Microsoft Excel
Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019
Price to earnings (P/E)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).


The financial ratios presented demonstrate the valuation trends of the company over multiple quarters from early 2019 through early 2025. Each ratio reflects different aspects of the company's relative value and market perceptions based on earnings, operating profits, sales, and book value.

Price to earnings (P/E) ratio
The P/E ratio data is only available from January 2020 onwards and shows significant fluctuation throughout the subsequent periods. Starting at 39.55 in January 2020, the P/E ratio generally trended upward reaching peaks around 73.37 in January 2022. After this peak, it declined with some variability but remained in a range mostly between the mid-30s to low 60s, with a marked decrease toward early 2025 where it settled around the mid-30s. This indicates varying investor confidence or changes in earnings performance relative to market price over time.
Price to operating profit (P/OP) ratio
This ratio follows a similar overall pattern to the P/E ratio, beginning at 40.48 in January 2020 and rising to a peak of 75.64 by January 2022. Afterward, it exhibits a downward trend with fluctuations, ending around 55.22 in January 2025. The decline following the peak suggests a reduction in valuation multiples relative to operating profits in recent quarters.
Price to sales (P/S) ratio
The P/S ratio starts at 6.27 in January 2020 and steadily increases, reaching a high point of 14.87 in July 2023. Following this peak, it gradually decreases through early 2025, finishing at 11.53. The steady rise followed by a moderate decline indicates growing market valuation relative to sales over most of the period, with some easing in valuation multiples in the latest quarters.
Price to book value (P/BV) ratio
The P/BV ratio shows a consistent upward trend from 4.08 in January 2019 through multiple increases, peaking at 14.02 in October 2023. From this apex, the ratio declines steadily to 7.24 by January 2025. This pattern highlights a significant increase in market valuation relative to book value over the first years, followed by a pronounced correction or revaluation lower in the most recent periods.

Overall, the various valuation ratios exhibit a general pattern of growth in market multiples through 2021 and early 2022, followed by a period of volatility and decline. Peaks across these metrics typically occurred between late 2021 and 2023, after which the company experienced a reduction in valuations relative to earnings, operating profit, sales, and book value. This suggests changing investor sentiment or shifting fundamentals impacting the company’s market valuation over the observed period.


Price to Earnings (P/E)

Synopsys Inc., historical P/E calculation (quarterly data)

Microsoft Excel
Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019
No. shares of common stock outstanding1
Selected Financial Data (US$)
Net income attributed to Synopsys (in thousands)
Earnings per share (EPS)2
Share price1, 3
Valuation Ratio
P/E ratio4
Benchmarks
P/E Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Workday Inc.

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).

1 Data adjusted for splits and stock dividends.

2 Q2 2025 Calculation
EPS = (Net income attributed to SynopsysQ2 2025 + Net income attributed to SynopsysQ1 2025 + Net income attributed to SynopsysQ4 2024 + Net income attributed to SynopsysQ3 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q2 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =

5 Click competitor name to see calculations.


The financial data over the analyzed quarters exhibits evolving trends in share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio. The following analysis articulates these changes and underlying patterns.

Share Price Trend
The share price demonstrates a general upward trajectory from January 2019 through April 2024, beginning at $102.89 and reaching a peak of $587.40 in July 2024. Notably, there are fluctuations within this increasing trend, with intermittent declines observed, such as between October 2021 and January 2022, where the price decreased from $362.23 to $287.63, and a more recent decline after July 2024, falling to $462.43 by April 2025. Despite these fluctuations, the overall trend reflects a strong bullish movement, indicating growing investor confidence or improving market conditions over the long term.
Earnings Per Share (EPS)
EPS values commence being reported in January 2020, initially at $3.54. From that point, EPS shows a consistent upward trend, rising to $13.94 by July 2025. There are minor variations, such as a slight drop from $5.29 in July 2021 to $4.94 in October 2021, before continuing to rise again. The overall increase suggests enhanced profitability or efficiency in the company's operations over these periods, pointing to strengthening financial performance.
Price-to-Earnings (P/E) Ratio
The P/E ratio begins reporting contemporaneously with EPS in January 2020, starting at 39.55. This ratio exhibits volatility across quarters, with values ranging from a low of approximately 33.17 in October 2025 to highs above 70 in early 2023 (70.08 in October 2023). The fluctuations in P/E suggest differing market expectations or varying valuation appetites among investors relative to earnings performance. Notably, despite the rising earnings, the P/E remains relatively elevated, indicating that the stock price adjustments are generally in line or slightly ahead of earnings growth, reflecting optimistic market sentiment.
Relationship Between Metrics
The data suggests that as EPS has steadily increased, the share price has generally followed suit, though with more pronounced volatility. The P/E ratio's unpredictable pattern indicates that while earnings growth has been consistent, market valuation sentiments fluctuate, potentially influenced by external macroeconomic factors, market cycles, or company-specific developments. The most recent quarters show a modest decline in share price coupled with stable-to-increasing EPS, resulting in a reduction of the P/E ratio, reflecting a normalization or potential correction in valuation.

Price to Operating Profit (P/OP)

Synopsys Inc., historical P/OP calculation (quarterly data)

Microsoft Excel
Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019
No. shares of common stock outstanding1
Selected Financial Data (US$)
Operating income (in thousands)
Operating profit per share2
Share price1, 3
Valuation Ratio
P/OP ratio4
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Workday Inc.

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).

1 Data adjusted for splits and stock dividends.

2 Q2 2025 Calculation
Operating profit per share = (Operating incomeQ2 2025 + Operating incomeQ1 2025 + Operating incomeQ4 2024 + Operating incomeQ3 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q2 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

5 Click competitor name to see calculations.


The analysis of the data reveals several notable trends in the financial performance and valuation of the subject company over the observed periods.

Share Price
The share price exhibited a generally upward trajectory from 2019 through early 2021, rising from approximately $103 to over $360 by October 2021. Following this peak, the price experienced fluctuations, including a decline in early 2022, but rebounded strongly in 2023 to reach a maximum of about $587 in July 2024. After this peak, the share price decreased somewhat through early 2025, ending at approximately $462.
Operating Profit per Share (Operating Profit Per Share, US$)
The operating profit per share, available from January 2020 onward, showed a steady upward trend across the entire period. Starting at approximately $3.46 in January 2020, it increased gradually with some minor fluctuations until it peaked around $9.6 in October 2024. A slight decline to approximately $8.37 was noted in the last recorded quarter (January 2025 to April 2025).
Price-to-Operating-Profit Ratio (P/OP)
This valuation ratio showed considerable volatility across the periods analyzed. From January 2020, the ratio started near 40, rose over time with some marked peaks reaching above 75 around October 2021, then declined sharply to below 43 in April 2022. It subsequently fluctuated within a band of approximately 50 to nearly 68 in the 2023-2024 period, before gradually declining again toward 55 by early 2025. This pattern indicates periods of differing market expectations about future profitability relative to operating profit.

Overall, the operational profitability per share steadily increased, demonstrating growth in earnings performance. The share price trends suggest strong investor confidence in later years, despite periodic corrections. The P/OP ratio's fluctuations point to varying investor sentiment and valuation multiples, possibly influenced by external market factors and company-specific developments impacting perceived value relative to operating profits.


Price to Sales (P/S)

Synopsys Inc., historical P/S calculation (quarterly data)

Microsoft Excel
Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019
No. shares of common stock outstanding1
Selected Financial Data (US$)
Revenue (in thousands)
Sales per share2
Share price1, 3
Valuation Ratio
P/S ratio4
Benchmarks
P/S Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Workday Inc.

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).

1 Data adjusted for splits and stock dividends.

2 Q2 2025 Calculation
Sales per share = (RevenueQ2 2025 + RevenueQ1 2025 + RevenueQ4 2024 + RevenueQ3 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q2 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =

5 Click competitor name to see calculations.


Share Price Trend
The share price has exhibited a consistent upward trend from January 2019 to April 2024. Starting at $102.89, it increased significantly, reaching several milestones such as $242.74 in October 2020, $362.23 in October 2021, and peaking at $587.40 in July 2024. Subsequently, there is a notable decline toward early 2025, with the price decreasing to $462.43 by January 2025. The overall trend suggests strong growth over the long term, punctuated by some volatility and a recent correction phase.
Sales per Share Trend
Sales per share data begins from January 2020, showing a steady increase from $22.33 to $40.10 by April 2025. This steady rise highlights continuous growth in revenue generated per share without major fluctuations, indicating consistent expansion in underlying sales performance over the period.
Price-to-Sales (P/S) Ratio Trend
The price-to-sales ratio, available from January 2020, displays variability along with an upward general pattern. Starting at 6.27, the ratio increased to peak around 14.87 in July 2024, reflecting increased market valuation relative to sales. However, the P/S ratio dips slightly after this peak, settling at 11.53 by April 2025. This pattern indicates periods of changing investor sentiment or market valuation relative to sales, with a stretch of premium pricing followed by some normalization.
Relationship Between Metrics
The simultaneous increase in share price and sales per share suggests that the company’s market valuation has generally tracked the improvement in sales performance. The rising P/S ratio further indicates that the share price growth often outpaced sales growth, signaling strong investor confidence or expectations about future growth prospects. The recent declines in share price and P/S ratio toward early 2025 may imply a market reassessment or correction relative to perceived sales momentum.

Price to Book Value (P/BV)

Synopsys Inc., historical P/BV calculation (quarterly data)

Microsoft Excel
Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019
No. shares of common stock outstanding1
Selected Financial Data (US$)
Total Synopsys stockholders’ equity (in thousands)
Book value per share (BVPS)2
Share price1, 3
Valuation Ratio
P/BV ratio4
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Workday Inc.

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).

1 Data adjusted for splits and stock dividends.

2 Q2 2025 Calculation
BVPS = Total Synopsys stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q2 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =

5 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price
The share price demonstrates a generally upward trajectory from January 2019 through most of 2024, beginning at approximately $103 and rising to a peak near $587 in July 2024. This represents a significant growth in market valuation over the period. However, after this peak, there is a noticeable decline, with the price falling to approximately $462 by April 2025. The upward trend is marked by intermittent fluctuations, but the overall increase suggests positive market sentiment and potentially strong company performance or growth expectations during these years.
Book Value Per Share (BVPS)
The BVPS shows a steady and consistent increase over the entire period, progressing from around $25 in early 2019 to nearly $64 by April 2025. Unlike the share price, this growth is smooth and gradual without sharp fluctuations, indicating ongoing accumulation of net assets per share, reflecting sustained growth in the company's equity base and retained earnings. The consistent rise in BVPS suggests improving financial strength and potentially sound management of equity capital.
Price-to-Book Value (P/BV) Ratio
The P/BV ratio exhibits a more volatile pattern in comparison to the other metrics. Initially, it rises from about 4.08 in January 2019 to peak periods above 14.0 by late 2023 and early 2024, reflecting an increasing market premium relative to book value. This suggests that investors price the company at a multiple significantly above its book equity, indicative of high growth expectations or intangible asset valuation. However, following this peak, the ratio declines to around 7.24 by April 2025, reflecting a contraction in market valuation multiples or a market correction relative to book value despite the ongoing increase in BVPS.

Overall, the data indicates that the company experienced robust market valuation growth outpacing its fundamental book value growth until late 2023 and early 2024, when valuation multiples contracted. The stable rise in BVPS points to steady improvements in the company's intrinsic financial value, while the fluctuating P/BV ratio highlights changing market perceptions and investor sentiment over time.