Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel

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.


The analysis of the financial trends reveals several notable patterns in the share price, sales per share, and price-to-sales (P/S) ratio over the examined periods.

Share Price
The share price exhibited a fluctuating yet generally upward trend from 2006 through 2024. Initial years showed moderate growth with some volatility, notably a decline around 2008, likely reflecting broader market conditions. From approximately 2012 onward, the share price experienced robust growth, reaching peaks above $360 by 2021. Although there was some decline by 2022 and 2024, the overall trajectory remained significantly higher compared to the earlier years, indicating strong market confidence and share value appreciation over the long term.
Sales Per Share
Sales per share demonstrated a steady and consistent increase across the entire timeframe. Starting at $6.87 in 2006, this metric rose almost every year, reaching nearly $40 by 2024. This steady growth reflects consistent revenue expansion and suggests effective management of sales and operations, contributing to increased shareholder value.
Price-to-Sales (P/S) Ratio
The P/S ratio exhibited considerable fluctuation over the years. Initially, the ratio remained around 3 to 3.5 but declined during the 2008 market downturn, reaching a low below 2. Post-2008, there was a general increase in the ratio, with notable spikes after 2015, peaking above 14 in 2019 and showing continued elevation thereafter. These increases in P/S ratio alongside rising share prices suggest heightened market expectations of the company’s growth prospects relative to its sales. The elevated ratio levels indicate that investors were valuing each dollar of sales at a much higher premium in recent years.

Comparison to Competitors

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

Microsoft Excel

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).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)