Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Synopsys Inc., FCFE calculation
US$ in thousands
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).
Net cash provided by operating activities and free cash flow to equity (FCFE) demonstrate fluctuating performance over the observed period. Operating cash flow generally increased from 2020 to 2022, then experienced a decline in 2023, followed by a partial recovery in 2024 and a further increase in 2025. FCFE mirrors this trend, but with a particularly significant surge in the final year.
- Operating Cash Flow Trend
- Operating cash flow increased substantially from US$991.313 million in 2020 to US$1,738.900 million in 2022, representing a growth of approximately 75.4%. A decrease to US$1,703.274 million was noted in 2023, followed by a decline to US$1,407.029 million in 2024. However, a notable increase to US$1,518.608 million occurred in 2025.
- FCFE Trend
- FCFE exhibited a similar pattern to operating cash flow, rising from US$824.206 million in 2020 to US$1,525.473 million in 2022, a growth of approximately 84.8%. It remained relatively stable in 2023 at US$1,511.053 million, then decreased to US$1,192.657 million in 2024. A dramatic increase to US$14,814.857 million is observed in 2025, significantly exceeding all prior years.
- FCFE as a Percentage of Operating Cash Flow
- The ratio of FCFE to operating cash flow remained relatively consistent between 2020 and 2023, fluctuating between approximately 83% and 89%. However, in 2025, this ratio increased substantially to approximately 976%, indicating a significant divergence between operating cash flow and FCFE. This suggests a substantial change in the company’s financing or investment activities in 2025.
- Overall Observations
- The period from 2020 to 2024 demonstrates a generally positive, albeit fluctuating, trend in both operating cash flow and FCFE. The substantial increase in FCFE in 2025 warrants further investigation to understand the underlying drivers, such as potential asset sales, significant reductions in capital expenditures, or changes in debt and equity financing.
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Price to FCFE Ratio, Current
Synopsys Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 191,562,027 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 14,814,857) |
| FCFE per share | 77.34 |
| Current share price (P) | 420.32 |
| Valuation Ratio | |
| P/FCFE | 5.43 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 8.19 |
| Adobe Inc. | 9.84 |
| AppLovin Corp. | 38.05 |
| Cadence Design Systems Inc. | 48.78 |
| CrowdStrike Holdings Inc. | 83.55 |
| Datadog Inc. | 158.08 |
| International Business Machines Corp. | 15.70 |
| Intuit Inc. | 20.96 |
| Microsoft Corp. | 45.26 |
| Oracle Corp. | 82.75 |
| Palantir Technologies Inc. | 171.56 |
| Palo Alto Networks Inc. | 53.10 |
| Salesforce Inc. | 9.10 |
| ServiceNow Inc. | 25.47 |
| Workday Inc. | 12.58 |
| P/FCFE, Sector | |
| Software & Services | 32.53 |
| P/FCFE, Industry | |
| Information Technology | 44.76 |
Based on: 10-K (reporting date: 2025-10-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Synopsys Inc., historical P/FCFE calculation, comparison to benchmarks
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 191,318,206 | 154,578,449 | 151,986,878 | 152,417,194 | 153,438,336 | 153,032,497 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 14,814,857) | 1,192,657) | 1,511,053) | 1,525,473) | 1,370,797) | 824,206) | |
| FCFE per share3 | 77.44 | 7.72 | 9.94 | 10.01 | 8.93 | 5.39 | |
| Share price1, 4 | 481.24 | 493.35 | 567.06 | 334.34 | 362.23 | 242.74 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 6.21 | 63.94 | 57.04 | 33.41 | 40.55 | 45.07 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | 9.96 | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | |
| Adobe Inc. | 12.06 | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | |
| AppLovin Corp. | 35.43 | 45.36 | 23.30 | — | 22.51 | — | |
| Cadence Design Systems Inc. | 50.96 | 24.08 | 71.40 | 33.41 | 36.31 | — | |
| CrowdStrike Holdings Inc. | 71.69 | 85.82 | 42.65 | 99.63 | 41.38 | — | |
| Datadog Inc. | 153.91 | 28.64 | 71.93 | 69.38 | 202.25 | — | |
| International Business Machines Corp. | 14.89 | 20.90 | 9.97 | 11.97 | 48.45 | — | |
| Intuit Inc. | 31.01 | 38.43 | 38.74 | 13.86 | 86.74 | 17.36 | |
| Microsoft Corp. | 60.89 | 42.11 | 43.32 | 36.73 | 42.54 | 42.74 | |
| Oracle Corp. | 113.86 | 48.38 | 15.47 | — | 8.36 | 6.27 | |
| Palantir Technologies Inc. | 151.45 | 256.11 | 74.28 | 96.89 | 198.12 | — | |
| Palo Alto Networks Inc. | 50.89 | 52.90 | 79.75 | 29.54 | 32.91 | 8.11 | |
| Salesforce Inc. | 25.91 | 38.33 | 31.06 | 16.56 | 49.52 | — | |
| ServiceNow Inc. | 26.94 | 61.82 | 58.19 | 44.44 | 64.54 | — | |
| Workday Inc. | 29.52 | 36.59 | 19.79 | 49.17 | 40.57 | — | |
| P/FCFE, Sector | |||||||
| Software & Services | 40.81 | 39.85 | 32.92 | 31.52 | 34.18 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 45.27 | 36.64 | 33.18 | 27.06 | 27.42 | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 14,814,857,000 ÷ 191,318,206 = 77.44
4 Closing price as at the filing date of Synopsys Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 481.24 ÷ 77.44 = 6.21
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio decreased from 45.07 in 2020 to 33.41 in 2022, before increasing significantly to 57.04 in 2023 and 63.94 in 2024. A dramatic decline to 6.21 is then observed in 2025.
- Share Price Trend
- The share price demonstrated an increasing trend from 2020 to 2023, rising from 242.74 to 567.06. A subsequent decrease occurred in 2024, falling to 493.35, and continued into 2025, reaching 481.24. The overall trend suggests a period of growth followed by stabilization and a slight decline.
- FCFE per Share Trend
- FCFE per share generally increased from 5.39 in 2020 to 10.01 in 2022. It experienced a slight decrease to 9.94 in 2023, followed by a more substantial decrease to 7.72 in 2024. However, a significant increase to 77.44 is observed in 2025. This indicates a period of consistent FCFE generation, with a notable surge in the final year of the observation period.
- P/FCFE Ratio Dynamics
- The initial decline in the P/FCFE ratio from 2020 to 2022 coincided with increasing FCFE per share and a rising share price, but the FCFE growth outpaced the share price increase. The subsequent increase in the ratio from 2022 to 2024 suggests that the share price grew at a faster rate than FCFE per share. The substantial decrease in 2025 is primarily driven by the significant increase in FCFE per share, while the share price remained relatively stable. This suggests that the equity became considerably cheaper relative to the free cash flow it generates in 2025.
The volatility in the P/FCFE ratio highlights the sensitivity of this metric to changes in both share price and FCFE per share. The substantial shift in 2025 warrants further investigation to understand the underlying factors contributing to the dramatic increase in FCFE per share.
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