Synopsys Inc., FCFF calculation

US$ in thousands

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)
Net loss attributed to non-controlling interest and redeemable non-controlling interest	(11,763)	(6,158)	(1,157)	(900)	—)	—)
Net noncash charges	812,489)	819,799)	606,082)	516,324)	344,424)	142,204)
Net changes in operating assets and liabilities, net of acquired assets and assumed liabilities	(327,340)	(59,335)	130,181)	(188,458)	(76,278)	(150,490)
Net cash provided by operating activities	1,703,274)	1,738,900)	1,492,622)	991,313)	800,513)	424,232)
Interest payments during the year, net of tax¹	932)	1,103)	3,160)	4,057)	12,065)	11,722)
Proceeds from sale of property and equipment	—)	—)	—)	—)	—)	1,662)
Purchases of property and equipment	(189,618)	(136,589)	(93,764)	(154,717)	(198,129)	(98,976)
Free cash flow to the firm (FCFF)	1,514,588)	1,603,414)	1,402,018)	840,653)	614,449)	338,640)

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 »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Synopsys Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Synopsys Inc. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Synopsys Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	6.43%	12.29%	6.10%	21.00%	2.41%	23.42%
Interest Paid, Net of Tax
Interest payments during the year, before tax	996)	1,258)	3,365)	5,136)	12,363)	15,307)
Less: Interest payments during the year, tax²	64)	155)	205)	1,079)	298)	3,585)
Interest payments during the year, net of tax	932)	1,103)	3,160)	4,057)	12,065)	11,722)

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 2023 Calculation
Interest payments during the year, tax = Interest payments during the year × EITR
= 996 × 6.43% = 64

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	81,365,374)
Free cash flow to the firm (FCFF)	1,514,588)
Valuation Ratio
EV/FCFF	53.72
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	20.55
Adobe Inc.	29.85
International Business Machines Corp.	14.14
Intuit Inc.	36.11
Microsoft Corp.	51.50
Oracle Corp.	35.04
Palo Alto Networks Inc.	35.42
Salesforce Inc.	27.01
ServiceNow Inc.	53.24
EV/FCFF, Sector
Software & Services	40.38
EV/FCFF, Industry
Information Technology	42.64

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

¹ Click competitor name to see calculations.

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

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

	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)
Free cash flow to the firm (FCFF)²	1,514,588)	1,603,414)	1,402,018)	840,653)	614,449)	338,640)
Valuation Ratio
EV/FCFF³	55.87	30.82	38.59	42.88	33.32	37.07
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	20.26	16.99	24.76	17.90	18.49	17.18
Adobe Inc.	37.75	20.82	33.61	40.43	40.48	31.36
International Business Machines Corp.	15.27	16.47	13.10	9.35	12.86	—
Intuit Inc.	31.28	32.85	48.64	37.90	33.30	27.69
Microsoft Corp.	41.75	32.31	38.37	33.99	26.37	23.99
Oracle Corp.	35.83	31.60	16.36	14.99	14.03	11.11
Palo Alto Networks Inc.	28.15	29.29	32.74	26.50	20.44	22.33
Salesforce Inc.	28.41	35.97	44.91	39.63	41.21	—
ServiceNow Inc.	56.49	40.86	60.13	83.74	67.96	—
EV/FCFF, Sector
Software & Services	35.26	29.16	31.90	27.10	23.26	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

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/FCFF = EV ÷ FCFF
= 84,619,155 ÷ 1,514,588 = 55.87

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Synopsys Inc. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Synopsys Inc. (NASDAQ:SNPS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical