Stock Analysis on Net
Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel
P/OP = Share price1, 2, 3 ÷ Operating profit per share1 Operating profit per share1 = Operating income (loss)1
(in thousands)		 ÷ No. shares of common stock outstanding2
Dec 19, 2024 = ÷ = ÷
Dec 12, 2023 = ÷ = ÷
Dec 12, 2022 = ÷ = ÷
Dec 13, 2021 = ÷ = ÷
Dec 15, 2020 = ÷ = ÷
Dec 20, 2019 = ÷ = ÷
Dec 17, 2018 = ÷ = ÷
Dec 14, 2017 = ÷ = ÷
Dec 12, 2016 = ÷ = ÷
Dec 14, 2015 = ÷ = ÷
Dec 15, 2014 = ÷ = ÷
Dec 20, 2013 = ÷ = ÷
Dec 20, 2012 = ÷ = ÷
Dec 16, 2011 = ÷ = ÷
Dec 17, 2010 = ÷ = ÷
Dec 18, 2009 = ÷ = ÷
Dec 22, 2008 = ÷ = ÷
Dec 21, 2007 = ÷ = ÷
Jan 11, 2007 = ÷ = ÷
Jan 12, 2006 = ÷ = ÷

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), 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.

Share Price Trend
The share price exhibited an overall upward trend from 2006 through 2024, rising from $21.67 to a peak of $567.06 in 2023 before falling slightly to $493.35 in 2024. Initial fluctuations were observed, including declines during the financial crisis in 2008 and some volatility in the following years. However, from 2014 onwards, a strong and sustained increase occurred, with notable accelerated growth starting around 2018 and peaking in 2023.
Operating Profit per Share Trend
Operating profit per share increased steadily over the period, starting from a negative $0.37 in 2006 and transitioning to positive values by 2007. Following this turnaround, a consistent upward path continued, reaching $8.77 by 2024. This growth indicates improving operational efficiency and profitability over the years, with the largest increments occurring after 2015.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio displayed considerable variation, reflecting changing market valuation relative to operating profit. Early in the period, the ratio was very high in 2007 (131.87) likely due to low operating profit per share. Thereafter, it generally decreased until around 2010, before rising again and peaking in 2020 at 75.64. The ratio then saw a decline in subsequent years, ending at 56.25 in 2024. These fluctuations suggest shifts in market sentiment, growth expectations, and possibly changes in risk perceptions over time.
Summary of Relationships and Insights
The sustained increase in operating profit per share alongside the rising share price implies the company’s improving fundamental performance supported market appreciation. However, the P/OP ratio dynamics indicate periods where price growth outpaced profit gains, especially notable in the later years, potentially reflecting elevated investor optimism or speculative factors. The slight decline in share price from 2023 to 2024 despite continued operating profit growth may point to recalibration in valuation or market conditions.

Comparison to Competitors

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

Microsoft Excel
Synopsys Inc. Accenture PLC Adobe Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. Fair Isaac Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Workday Inc.
Dec 19, 2024
Dec 12, 2023
Dec 12, 2022
Dec 13, 2021
Dec 15, 2020
Dec 20, 2019
Dec 17, 2018
Dec 14, 2017
Dec 12, 2016
Dec 14, 2015
Dec 15, 2014
Dec 20, 2013
Dec 20, 2012
Dec 16, 2011
Dec 17, 2010
Dec 18, 2009
Dec 22, 2008
Dec 21, 2007
Jan 11, 2007
Jan 12, 2006

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), 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).