Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Synopsys Inc., current price multiples
| Synopsys Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Workday Inc. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Current share price (P) | $477.14 | ||||||||||||||||||||
| No. shares of common stock outstanding | 191,318,206 | ||||||||||||||||||||
| Growth rate (g) | 16.06% | ||||||||||||||||||||
| Earnings per share (EPS) | $6.96 | ||||||||||||||||||||
| Next year expected EPS | $8.08 | ||||||||||||||||||||
| Operating profit per share | $4.78 | ||||||||||||||||||||
| Sales per share | $36.87 | ||||||||||||||||||||
| Book value per share (BVPS) | $148.07 | ||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | 68.52 | 21.73 | 26.64 | 152.79 | 82.24 | — | 263.98 | 47.35 | 48.68 | 35.60 | 45.72 | 973.15 | 115.84 | 40.23 | 112.31 | 110.35 | 48.83 | 65.65 | |||
| Price to next year expected earnings | 59.04 | 18.66 | 20.14 | 124.98 | 64.90 | — | 263.95 | 47.02 | 43.24 | 27.95 | 16.25 | 1,173.20 | 101.14 | 38.38 | 100.25 | 110.32 | 40.30 | 52.43 | |||
| Price-earnings-growth (PEG) | 4.27 | 1.32 | 0.83 | 6.87 | 3.08 | — | 28,014.18 | 67.74 | 3.87 | 1.30 | 0.25 | — | 7.97 | 8.32 | 9.34 | 4,445.81 | 2.31 | 2.60 | |||
| Price to operating profit (P/OP) | 99.77 | 16.32 | 21.97 | 128.84 | 64.26 | — | 893.54 | 30.40 | 38.26 | 28.20 | 32.18 | 1,449.01 | 105.68 | 34.60 | 117.34 | 139.87 | 39.80 | 50.94 | |||
| Price to sales (P/S) | 12.94 | 2.40 | 6.89 | 51.26 | 18.70 | 30.68 | 18.07 | 4.54 | 10.00 | 12.87 | 9.91 | 156.96 | 14.24 | 6.58 | 14.57 | 6.87 | 12.06 | 13.55 | |||
| Price to book value (P/BV) | 3.22 | 5.35 | 10.50 | 221.48 | 18.57 | 36.99 | 17.87 | 10.44 | 9.56 | 10.55 | 27.82 | 89.90 | 16.79 | 4.08 | 16.66 | 6.43 | 14.01 | 19.27 | |||
Based on: 10-K (reporting date: 2025-10-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Synopsys Inc., historical price multiples
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).
An examination of the valuation ratios reveals fluctuating trends across the observed period. Generally, the ratios demonstrate considerable variability year-over-year, suggesting shifts in investor sentiment and market conditions impacting the company’s valuation. A period of increasing valuations from 2020 to 2021 is followed by a decline in 2022, with subsequent recoveries and renewed fluctuations in later years.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced an increase from 55.92 in 2020 to 73.37 in 2021, indicating growing investor confidence or expectations for future earnings. A subsequent decrease to 51.76 in 2022 suggests a correction or reduced optimism. The ratio rebounded to 70.08 in 2023 before falling significantly to 33.69 in 2024, potentially reflecting concerns about earnings sustainability or a market adjustment. A partial recovery to 69.11 is observed in 2025.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio increased from 59.90 in 2020 to 75.64 in 2021. A notable decline to 43.85 in 2022 is followed by a recovery to 67.90 in 2023. The ratio then increases to 56.25 in 2024 and experiences a substantial jump to 100.63 in 2025, potentially indicating increased investor focus on operational profitability or a premium placed on the company’s core business performance.
- Price to Sales (P/S)
- The Price to Sales ratio shows a generally upward trend from 10.08 in 2020 to 13.22 in 2021, followed by a slight decrease to 10.03 in 2022. The ratio then rises to 14.75 in 2023, representing the highest value in the observed period, before decreasing to 12.45 in 2024 and stabilizing at 13.05 in 2025. This suggests a consistent, though fluctuating, valuation relative to revenue.
- Price to Book Value (P/BV)
- The Price to Book Value ratio increased from 7.57 in 2020 to 10.50 in 2021, indicating a growing premium placed on the company’s net asset value. The ratio remains relatively stable at 9.24 in 2022 before increasing significantly to 14.02 in 2023. A substantial decrease to 8.48 in 2024 is followed by a dramatic decline to 3.25 in 2025, potentially signaling a reassessment of the company’s asset valuation or a shift in investor perception regarding its intrinsic worth.
Overall, the observed valuation ratios suggest a dynamic valuation landscape. The significant fluctuations, particularly in the later years, warrant further investigation to understand the underlying drivers and potential implications for the company’s future performance and investor expectations.
Price to Earnings (P/E)
Synopsys Inc., historical P/E 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$) | |||||||
| Net income attributed to Synopsys (in thousands) | 1,332,220) | 2,263,380) | 1,229,888) | 984,594) | 757,516) | 664,347) | |
| Earnings per share (EPS)2 | 6.96 | 14.64 | 8.09 | 6.46 | 4.94 | 4.34 | |
| Share price1, 3 | 481.24 | 493.35 | 567.06 | 334.34 | 362.23 | 242.74 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 69.11 | 33.69 | 70.08 | 51.76 | 73.37 | 55.92 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Accenture PLC | 19.47 | 31.07 | 27.81 | 22.93 | 36.58 | 28.32 | |
| Adobe Inc. | — | 31.98 | 49.64 | 33.15 | 48.90 | 41.69 | |
| AppLovin Corp. | — | 68.97 | 56.56 | — | 472.35 | — | |
| Cadence Design Systems Inc. | — | 67.09 | 78.64 | 59.70 | 53.88 | 62.89 | |
| CrowdStrike Holdings Inc. | — | 892.67 | — | — | — | — | |
| Datadog Inc. | — | 235.49 | 884.97 | — | — | — | |
| International Business Machines Corp. | — | 39.68 | 22.50 | 71.56 | 19.40 | 19.30 | |
| Intuit Inc. | 48.19 | 58.94 | 64.61 | 57.31 | 75.17 | 49.52 | |
| Microsoft Corp. | 37.46 | 35.67 | 33.96 | 28.34 | 35.14 | 35.04 | |
| Oracle Corp. | 47.60 | 37.63 | 38.96 | 26.85 | 15.84 | 16.69 | |
| Palantir Technologies Inc. | — | 632.38 | 246.77 | — | — | — | |
| Palo Alto Networks Inc. | 112.39 | 42.42 | 170.35 | — | — | — | |
| Salesforce Inc. | 45.28 | 71.24 | 879.57 | 135.68 | 48.20 | 1,204.70 | |
| ServiceNow Inc. | — | 146.40 | 90.80 | 284.29 | 487.70 | 978.49 | |
| Workday Inc. | 122.85 | 50.53 | — | 1,957.29 | — | — | |
| P/E Ratio, Sector | |||||||
| Software & Services | — | 42.11 | 40.33 | 34.78 | 38.09 | 38.69 | |
| P/E Ratio, Industry | |||||||
| Information Technology | — | 45.25 | 36.08 | 26.93 | 29.73 | 31.22 | |
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.
2 2025 Calculation
EPS = Net income attributed to Synopsys ÷ No. shares of common stock outstanding
= 1,332,220,000 ÷ 191,318,206 = 6.96
3 Closing price as at the filing date of Synopsys Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 481.24 ÷ 6.96 = 69.11
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the observed period. Initially, the P/E ratio increased from 2020 to 2021, followed by a decrease in 2022, then another increase through 2023, before declining significantly in 2024 and increasing again in 2025.
- Overall Trend
- The P/E ratio demonstrated volatility, lacking a consistent upward or downward trajectory. The highest ratio was recorded in 2021 at 73.37, while the lowest was observed in 2024 at 33.69.
- P/E Ratio – 2020 to 2022
- From 2020 to 2021, the P/E ratio increased from 55.92 to 73.37, coinciding with an increase in both share price and earnings per share (EPS). However, in 2022, the P/E ratio decreased to 51.76, despite EPS increasing. This suggests the share price did not increase at the same rate as earnings, or potentially decreased.
- P/E Ratio – 2022 to 2025
- The P/E ratio rose to 70.08 in 2023, driven by a substantial increase in share price and a moderate increase in EPS. A significant decline to 33.69 was then observed in 2024, primarily due to a decrease in share price despite a considerable increase in EPS. Finally, the P/E ratio increased to 69.11 in 2025, reflecting a moderate decrease in EPS and a relatively stable share price.
- Relationship to Share Price and EPS
- The P/E ratio’s movements are closely tied to changes in both share price and EPS. Periods of increasing P/E ratios generally correspond to increases in both metrics, while decreases in the P/E ratio can be attributed to either a decline in share price, a slower growth rate of share price compared to EPS, or a decrease in EPS.
The considerable fluctuations in the P/E ratio suggest potential shifts in investor sentiment or expectations regarding future earnings growth.
Price to Operating Profit (P/OP)
Synopsys Inc., historical P/OP 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$) | |||||||
| Operating income (in thousands) | 914,927) | 1,355,711) | 1,269,259) | 1,162,038) | 734,790) | 620,141) | |
| Operating profit per share2 | 4.78 | 8.77 | 8.35 | 7.62 | 4.79 | 4.05 | |
| Share price1, 3 | 481.24 | 493.35 | 567.06 | 334.34 | 362.23 | 242.74 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 100.63 | 56.25 | 67.90 | 43.85 | 75.64 | 59.90 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Accenture PLC | 14.62 | 23.52 | 21.69 | 16.83 | 28.35 | 22.21 | |
| Adobe Inc. | — | 26.38 | 40.52 | 25.85 | 40.64 | 51.75 | |
| AppLovin Corp. | — | 58.16 | 31.12 | — | 111.61 | — | |
| Cadence Design Systems Inc. | — | 52.42 | 65.43 | 47.21 | 48.13 | 57.54 | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | |
| Datadog Inc. | — | 797.11 | — | — | — | — | |
| International Business Machines Corp. | — | 25.48 | 17.99 | 14.35 | 16.23 | 15.90 | |
| Intuit Inc. | 37.87 | 48.11 | 49.04 | 46.05 | 62.00 | 41.56 | |
| Microsoft Corp. | 29.68 | 28.73 | 27.76 | 24.72 | 30.79 | 29.30 | |
| Oracle Corp. | 33.50 | 25.65 | 25.30 | 16.51 | 14.31 | 12.17 | |
| Palantir Technologies Inc. | — | 941.61 | 431.61 | — | — | — | |
| Palo Alto Networks Inc. | 102.53 | 159.88 | 193.40 | — | — | — | |
| Salesforce Inc. | 38.94 | 58.80 | 177.62 | 357.52 | 431.39 | 511.08 | |
| ServiceNow Inc. | — | 152.95 | 206.26 | 260.27 | 436.46 | 583.08 | |
| Workday Inc. | 155.71 | 381.31 | — | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Software & Services | — | 34.32 | 32.29 | 27.53 | 34.16 | 32.10 | |
| P/OP Ratio, Industry | |||||||
| Information Technology | — | 35.11 | 30.04 | 22.85 | 26.25 | 27.02 | |
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.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 914,927,000 ÷ 191,318,206 = 4.78
3 Closing price as at the filing date of Synopsys Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 481.24 ÷ 4.78 = 100.63
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited considerable fluctuation over the observed period. Initially, the ratio increased from 59.90 in 2020 to 75.64 in 2021, indicating increasing investor valuation relative to each dollar of operating profit. A significant decrease followed in 2022, with the P/OP ratio falling to 43.85. The ratio then recovered to 67.90 in 2023 before decreasing again to 56.25 in 2024. Finally, a substantial increase to 100.63 is observed in 2025.
- Overall Trend
- The P/OP ratio demonstrates a lack of consistent direction. While an initial increase suggests growing investor confidence, subsequent declines and a final sharp rise indicate volatility in market perception of the company’s operating profitability. The ratio nearly doubled between 2024 and 2025.
- Relationship to Share Price
- The share price generally moved in a manner consistent with the P/OP ratio, though not always proportionally. The peak in share price in 2023 corresponds with a relatively high P/OP ratio. The decrease in share price in 2024 aligns with a lower P/OP ratio. However, the substantial increase in P/OP in 2025 occurred alongside a slight decrease in share price, suggesting operating profit per share may not have fully driven the valuation change.
- Relationship to Operating Profit per Share
- Operating profit per share increased steadily from 2020 to 2024, reaching 8.77 in 2024. This increase did not consistently translate into a higher P/OP ratio, as seen in 2022 and 2024. The significant decline in operating profit per share to 4.78 in 2025, coupled with the substantial increase in the P/OP ratio, suggests that market expectations or other factors beyond current earnings played a significant role in the valuation shift.
The volatility in the P/OP ratio warrants further investigation. Understanding the drivers behind these fluctuations – whether changes in growth expectations, risk perception, or broader market conditions – is crucial for a comprehensive valuation assessment.
Price to Sales (P/S)
Synopsys Inc., historical P/S 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$) | |||||||
| Revenue (in thousands) | 7,054,178) | 6,127,436) | 5,842,619) | 5,081,542) | 4,204,193) | 3,685,281) | |
| Sales per share2 | 36.87 | 39.64 | 38.44 | 33.34 | 27.40 | 24.08 | |
| Share price1, 3 | 481.24 | 493.35 | 567.06 | 334.34 | 362.23 | 242.74 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 13.05 | 12.45 | 14.75 | 10.03 | 13.22 | 10.08 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Accenture PLC | 2.15 | 3.48 | 2.98 | 2.56 | 4.28 | 3.26 | |
| Adobe Inc. | — | 8.27 | 13.88 | 8.95 | 14.94 | 17.04 | |
| AppLovin Corp. | — | 23.14 | 6.14 | 1.80 | 5.99 | — | |
| Cadence Design Systems Inc. | — | 15.26 | 20.02 | 14.23 | 12.55 | 13.85 | |
| CrowdStrike Holdings Inc. | 19.36 | 26.10 | 12.81 | 30.15 | 48.70 | 22.79 | |
| Datadog Inc. | — | 16.12 | 20.19 | 14.64 | 49.25 | 49.57 | |
| International Business Machines Corp. | — | 3.81 | 2.73 | 1.94 | 1.94 | 1.47 | |
| Intuit Inc. | 9.90 | 10.72 | 10.72 | 9.30 | 16.09 | 11.78 | |
| Microsoft Corp. | 13.54 | 12.82 | 11.60 | 10.40 | 12.81 | 10.85 | |
| Oracle Corp. | 10.32 | 7.44 | 6.63 | 4.25 | 5.38 | 4.33 | |
| Palantir Technologies Inc. | — | 102.00 | 23.27 | 9.34 | 15.58 | 39.86 | |
| Palo Alto Networks Inc. | 13.82 | 13.62 | 10.87 | 9.62 | 10.72 | 6.66 | |
| Salesforce Inc. | 7.40 | 8.45 | 5.84 | 7.40 | 9.24 | 8.88 | |
| ServiceNow Inc. | — | 18.99 | 17.52 | 12.75 | 19.02 | 25.66 | |
| Workday Inc. | 7.65 | 9.61 | 7.71 | 11.19 | 13.95 | 10.65 | |
| P/S Ratio, Sector | |||||||
| Software & Services | — | 10.40 | 8.78 | 7.45 | 9.54 | 7.74 | |
| P/S Ratio, Industry | |||||||
| Information Technology | — | 9.34 | 7.33 | 6.01 | 6.99 | 6.13 | |
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.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 7,054,178,000 ÷ 191,318,206 = 36.87
3 Closing price as at the filing date of Synopsys Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 481.24 ÷ 36.87 = 13.05
5 Click competitor name to see calculations.
The price to sales ratio exhibited fluctuating behavior over the observed period. Initial increases were followed by declines and subsequent rises, indicating a dynamic valuation relative to revenue generation.
- Overall Trend
- The price to sales ratio began at 10.08 in 2020, increased to a peak of 14.75 in 2023, and then decreased to 13.05 in 2025. This suggests periods of increased investor optimism followed by potential corrections or shifts in market sentiment.
- 2020-2021
- From 2020 to 2021, the price to sales ratio increased from 10.08 to 13.22. This rise coincided with an increase in sales per share, from US$24.08 to US$27.40, suggesting that revenue growth contributed to the higher valuation multiple.
- 2021-2022
- A decrease in the price to sales ratio was observed between 2021 and 2022, falling from 13.22 to 10.03. While sales per share increased from US$27.40 to US$33.34, the share price experienced a more substantial decline, resulting in the lower ratio.
- 2022-2023
- The price to sales ratio experienced a significant increase from 10.03 in 2022 to 14.75 in 2023. This increase was driven by a substantial rise in share price, from US$334.34 to US$567.06, while sales per share also increased, from US$33.34 to US$38.44.
- 2023-2025
- From 2023 to 2025, the price to sales ratio decreased from 14.75 to 13.05. This decline occurred despite a slight increase in sales per share to US$39.64 in 2024, followed by a decrease to US$36.87 in 2025. The share price decreased from US$567.06 to US$481.24 over the same period, contributing to the ratio’s decline.
The fluctuations in the price to sales ratio suggest that investor expectations and market conditions significantly influence the company’s valuation relative to its sales performance.
Price to Book Value (P/BV)
Synopsys Inc., historical P/BV calculation, comparison to benchmarks
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 191,318,206 | 154,578,449 | 151,986,878 | 152,417,194 | 153,438,336 | 153,032,497 | |
| Selected Financial Data (US$) | |||||||
| Total Synopsys stockholders’ equity (in thousands) | 28,327,602) | 8,990,702) | 6,147,308) | 5,515,725) | 5,295,137) | 4,907,404) | |
| Book value per share (BVPS)2 | 148.07 | 58.16 | 40.45 | 36.19 | 34.51 | 32.07 | |
| Share price1, 3 | 481.24 | 493.35 | 567.06 | 334.34 | 362.23 | 242.74 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 3.25 | 8.48 | 14.02 | 9.24 | 10.50 | 7.57 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Accenture PLC | 4.79 | 7.98 | 7.44 | 7.13 | 11.06 | 8.51 | |
| Adobe Inc. | — | 12.61 | 16.31 | 11.22 | 15.94 | 16.53 | |
| AppLovin Corp. | — | 99.97 | 16.06 | 2.67 | 7.83 | — | |
| Cadence Design Systems Inc. | — | 15.15 | 24.05 | 18.46 | 13.68 | 14.90 | |
| CrowdStrike Holdings Inc. | 23.34 | 34.61 | 19.61 | 42.67 | 48.91 | 14.78 | |
| Datadog Inc. | — | 15.94 | 21.22 | 17.39 | 48.66 | 31.25 | |
| International Business Machines Corp. | — | 8.75 | 7.49 | 5.34 | 5.90 | 5.24 | |
| Intuit Inc. | 9.46 | 9.47 | 8.92 | 7.20 | 15.71 | 17.71 | |
| Microsoft Corp. | 11.11 | 11.71 | 11.92 | 12.38 | 15.16 | 13.11 | |
| Oracle Corp. | 28.96 | 45.25 | 308.71 | — | 41.57 | 14.01 | |
| Palantir Technologies Inc. | — | 58.42 | 14.90 | 6.94 | 10.48 | 28.60 | |
| Palo Alto Networks Inc. | 16.29 | 21.15 | 42.84 | 252.00 | 71.88 | 20.61 | |
| Salesforce Inc. | 4.59 | 4.94 | 3.13 | 3.37 | 4.73 | 4.48 | |
| ServiceNow Inc. | — | 21.71 | 20.60 | 18.36 | 30.36 | 40.91 | |
| Workday Inc. | 7.15 | 8.63 | 8.58 | 12.68 | 18.38 | 15.54 | |
| P/BV Ratio, Sector | |||||||
| Software & Services | — | 12.08 | 11.43 | 10.64 | 13.62 | 11.68 | |
| P/BV Ratio, Industry | |||||||
| Information Technology | — | 13.29 | 11.49 | 10.46 | 12.54 | 11.12 | |
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.
2 2025 Calculation
BVPS = Total Synopsys stockholders’ equity ÷ No. shares of common stock outstanding
= 28,327,602,000 ÷ 191,318,206 = 148.07
3 Closing price as at the filing date of Synopsys Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 481.24 ÷ 148.07 = 3.25
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio increased from 7.57 in 2020 to 10.50 in 2021, indicating a growing premium investors were willing to pay for each dollar of net asset value. This was followed by a slight decrease to 9.24 in 2022, before a substantial increase to 14.02 in 2023.
- Overall Trend
- From 2020 to 2023, the P/BV ratio generally trended upward, suggesting increasing investor confidence or potentially overvaluation relative to book value. However, a significant shift occurred in 2024 and 2025, with the ratio declining sharply to 8.48 and then to 3.25, respectively.
- Share Price Behavior
- The share price increased significantly between 2020 and 2023, from US$242.74 to US$567.06. This increase contributed to the rising P/BV ratio during that period. However, the share price experienced a decrease in 2024 and a further decrease in 2025, falling to US$493.35 and US$481.24, respectively. This decline, coupled with the increasing book value per share, drove the substantial reduction in the P/BV ratio.
- Book Value per Share (BVPS) Behavior
- Book value per share demonstrated a consistent, albeit moderate, increase from US$32.07 in 2020 to US$40.45 in 2023. The most substantial increase in BVPS occurred between 2023 and 2025, rising to US$58.16 in 2024 and then dramatically to US$148.07 in 2025. This rapid growth in book value is a primary driver of the P/BV ratio’s decline in the latter years of the period.
The substantial decrease in the P/BV ratio in 2024 and 2025 suggests that the market’s valuation of the company’s equity has become more aligned with its underlying net asset value, or that investor expectations have moderated. The significant increase in book value per share in 2025 further reinforces this observation.