Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Synopsys Inc., EBITDA 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
Add: Net income attributable to noncontrolling interest (11,763) (6,158) (1,157) (900)
Add: Income tax expense 83,657 137,078 49,155 (25,288) 13,139 (68,975)
Earnings before tax (EBT) 1,301,782 1,115,514 805,514 638,159 545,506 363,543
Add: Interest expense 1,178 1,698 3,365 5,140 11,659 15,607
Earnings before interest and tax (EBIT) 1,302,960 1,117,212 808,879 643,299 557,165 379,150
Add: Amortization and depreciation 247,120 228,405 203,676 209,986 201,676 209,207
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,550,080 1,345,617 1,012,555 853,285 758,841 588,357

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
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Synopsys Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Synopsys Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 81,372,606
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,550,080
Valuation Ratio
EV/EBITDA 52.50
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 19.86
Adobe Inc. 27.48
Autodesk Inc. 48.52
Cadence Design Systems Inc. 52.50
CrowdStrike Holdings Inc. 257.95
International Business Machines Corp. 17.54
Intuit Inc. 38.16
Microsoft Corp. 23.29
Oracle Corp. 26.13
Palo Alto Networks Inc. 93.68
Salesforce Inc. 29.64
ServiceNow Inc. 119.17
EV/EBITDA, Sector
Software & Services 31.07
EV/EBITDA, Industry
Information Technology 36.26

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

1 Click competitor name to see calculations.

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


Enterprise Value to EBITDA Ratio, Historical

Synopsys Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 84,619,155 49,419,269 54,103,071 36,044,325 20,471,792 12,555,022
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,550,080 1,345,617 1,012,555 853,285 758,841 588,357
Valuation Ratio
EV/EBITDA3 54.59 36.73 53.43 42.24 26.98 21.34
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 17.26 14.25 23.31 17.46 15.60
Adobe Inc. 34.07 22.32 35.44 43.06 41.16 37.27
Autodesk Inc. 36.84 53.83 79.27 69.31 335.51
Cadence Design Systems Inc. 55.61 42.11 39.61 45.75 31.64
CrowdStrike Holdings Inc.
International Business Machines Corp. 14.41 22.17 12.53 12.28 10.23
Intuit Inc. 38.71 36.22 51.96 35.70 34.27
Microsoft Corp. 22.92 20.17 24.59 21.74 17.21
Oracle Corp. 21.80 17.12 13.78 11.54 11.83
Palo Alto Networks Inc. 85.08 515.16 349.95 117.16
Salesforce Inc. 38.42 38.91 33.92 49.78 56.71
ServiceNow Inc. 96.48 104.30 147.45 220.91 187.17
EV/EBITDA, Sector
Software & Services 24.84 22.25 25.32 22.51 18.25
EV/EBITDA, Industry
Information Technology 23.77 18.68 20.68 19.72 14.63

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 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 84,619,155 ÷ 1,550,080 = 54.59

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Synopsys Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.