Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

Calculation

Synopsys Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-31), 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), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).

1 US$

2 Data adjusted for splits and stock dividends.

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


The price-to-earnings (P/E) ratio for the observed period exhibits considerable fluctuation. Initially, the P/E ratio is unavailable for 2006, then demonstrates a high value in 2007 before declining significantly through 2008. Subsequent years show a period of relative stability, followed by another increase and then a substantial surge in the latter half of the period.

Initial Period (2006-2009)
The P/E ratio begins at an unrecorded value in 2006, then spikes to 156.86 in 2007. This is followed by a marked decrease to 13.55 in 2008, potentially reflecting market conditions or company-specific events. The ratio then recovers somewhat, stabilizing around the 17 to 19 range from 2009 to 2011.
Mid-Period Stability (2010-2014)
From 2010 through 2014, the P/E ratio remains relatively contained, fluctuating between approximately 17 and 30. This suggests a period of more predictable earnings expectations relative to the share price. A gradual increase is observed during this timeframe.
Significant Fluctuation (2015-2023)
Beginning in 2015, the P/E ratio experiences more pronounced volatility. It rises to 33.71 in 2016, then dramatically increases to 95.81 in 2017, before decreasing to 29.60 in 2018. The ratio continues to fluctuate, reaching a peak of 73.37 in 2021, followed by a decline to 51.76 in 2022, and then a substantial increase to 70.08 in 2023.
Recent Trends (2023-2025)
The P/E ratio decreased to 33.69 in 2024, and then to 69.11 in 2025. This suggests a potential shift in investor sentiment or earnings expectations in the most recent observed period.

Overall, the P/E ratio demonstrates a lack of consistent trend, with periods of stability interspersed with significant increases and decreases. The fluctuations suggest that investor expectations regarding future earnings have varied considerably over the observed timeframe. The higher P/E ratios observed in certain years may indicate investor optimism or a premium placed on future growth potential, while lower ratios could reflect concerns about earnings or broader market conditions.


Comparison to Competitors

Synopsys Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-10-31), 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), 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)