Stock Analysis on Net

Synopsys Inc. (NASDAQ:SNPS)

$24.99

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Microsoft Excel

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Historical Valuation Ratios (Summary)

Synopsys Inc., historical price multiples (quarterly data)

Microsoft Excel
Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
Price to earnings (P/E)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

Based on: 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).


The financial ratios exhibit varied trends over the reviewed periods, reflecting changes in valuation metrics relative to earnings, operating profit, sales, and book value.

Price to earnings (P/E) ratio
This ratio shows notable fluctuations with a general pattern of increase followed by a downward adjustment. It started around the mid-40s, peaked above 70 in late 2021 and 2023, then dropped sharply to the mid-30s by early 2025, before rising again to over 56 by mid-2025. This volatility indicates periods of changing investor expectations on earnings growth or profitability outlook.
Price to operating profit (P/OP) ratio
Similar to the P/E ratio, the P/OP ratio experienced an upward trend during 2020 and 2021, reaching highs close to 76 around late 2021. Subsequently, it declined considerably to levels in the mid-50s to 60s through 2023 and early 2024. An exceptional spike to over 101 occurs in mid-2025, suggesting a sharp revaluation relative to operating profit that quarter or one-time effects.
Price to sales (P/S) ratio
The P/S ratio steadily increased from approximately 6.65 at the start of 2020 to a peak near 14.75 in late 2023. It then remained relatively stable around 13 to 14 through early 2024 before trending downward to about 11.5 by mid-2025. This indicates a strengthening sales valuation over most of the period with some moderation in the latest quarters.
Price to book value (P/BV) ratio
The P/BV ratio rose considerably from a low of about 5.4 early in 2020 to a peak exceeding 14 in late 2023. Following this peak, it experienced a consistent and marked decline through 2024 and into 2025, reaching just above 4 by mid-2025. Such a pattern suggests a strong initial market premium on book value that diminished significantly in later periods.

In summary, the valuation metrics indicate strong growth and high market expectations through 2021 to 2023, with peaks in price multiples reflecting investor optimism. However, the subsequent decline in all ratios, particularly evident in P/BV and P/E, points to a moderation or reassessment of the company’s valuation relative to its fundamental financial performance starting in late 2023 and continuing through 2025. The sharp increase in the price to operating profit ratio in mid-2025 stands out as an anomaly warranting further investigation.


Price to Earnings (P/E)

Synopsys Inc., historical P/E calculation (quarterly data)

Microsoft Excel
Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
No. shares of common stock outstanding1
Selected Financial Data (US$)
Net income attributed to Synopsys (in thousands)
Earnings per share (EPS)2
Share price1, 3
Valuation Ratio
P/E ratio4
Benchmarks
P/E Ratio, Competitors5
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.

Based on: 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2025 Calculation
EPS = (Net income attributed to SynopsysQ3 2025 + Net income attributed to SynopsysQ2 2025 + Net income attributed to SynopsysQ1 2025 + Net income attributed to SynopsysQ4 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q3 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =

5 Click competitor name to see calculations.


The share price exhibited a general upward trend over the analyzed period, rising from $149.33 in early 2020 to a peak of $587.40 by mid-2024. There were periods of notable volatility; for example, a significant increase occurred between April 2023 and October 2023, where the price jumped from $408.50 to $567.06. Some pullbacks were observed in late 2024, with a decline from $539.39 to $462.43 before recovering to $604.37 by mid-2025.

Earnings per share (EPS) showed consistent growth over the same timeframe, increasing from $3.21 in early 2020 to a high of $14.64 in January 2025. Despite this upward momentum, the EPS experienced some fluctuations, including a dip from $6.75 in July 2022 to $6.19 in January 2023 and a decline from $13.94 in July 2025 to $10.75 in October 2025, indicating some variability in quarterly earnings.

The price-to-earnings (P/E) ratio demonstrated considerable variability across the quarters. Initially, it hovered mostly in the 45 to 75 range, with peaks such as 73.37 in October 2021 and 70.08 in October 2023. However, starting in early 2024, the P/E ratio trended downward substantially to a low around 33.17 in July 2025, before sharply increasing again to 56.20 by the last quarter analyzed. This fluctuation suggests changing market perceptions of the company’s valuation relative to its earnings.

Share Price
Strong growth overall with intermittent periods of price correction and volatility, culminating in a significant increase in 2023 and subsequent fluctuations through mid-2025.
Earnings Per Share (EPS)
Consistent upward trend reflecting improving profitability, albeit with some quarterly fluctuations that suggest variable performance influences.
Price-to-Earnings (P/E) Ratio
Fluctuated widely, indicating changing investor sentiment and valuation multiples; a downward trend in early 2024 suggested increased earnings relative to price, followed by renewed upward pressure on valuation multiples at the end of the period.

In summary, the financial data reflects strong earnings growth driving a general increase in share price, although market valuation multiples showed notable volatility. The declining P/E ratio in early 2024, despite rising share prices, may indicate a period of earnings growth outpacing price increases, improving valuation attractiveness before a reversal occurred later. Overall, the trends suggest a company experiencing significant growth with periods of market readjustment to reflect evolving performance and investor expectations.


Price to Operating Profit (P/OP)

Synopsys Inc., historical P/OP calculation (quarterly data)

Microsoft Excel
Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
No. shares of common stock outstanding1
Selected Financial Data (US$)
Operating income (in thousands)
Operating profit per share2
Share price1, 3
Valuation Ratio
P/OP ratio4
Benchmarks
P/OP Ratio, Competitors5
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.

Based on: 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2025 Calculation
Operating profit per share = (Operating incomeQ3 2025 + Operating incomeQ2 2025 + Operating incomeQ1 2025 + Operating incomeQ4 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q3 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

5 Click competitor name to see calculations.


Share Price Trends
The share price exhibited a general upward trajectory from early 2020 through late 2023, with some volatility apparent in certain quarters. Starting at $149.33 in January 2020, the price steadily increased, peaking at $567.06 in October 2023. This represents a nearly fourfold increase over the observed period. However, subsequent quarters show some fluctuation, with prices declining to $493.35 by January 2025 before rising again to $604.37 in July 2025. Overall, the trend reflects substantial growth punctuated by intermittent corrections.
Operating Profit per Share (OPPS) Patterns
Operating profit per share demonstrated consistent growth from $3.06 in January 2020 to a peak of $9.6 in July 2024, indicating a strong increase in core profitability. There were marginal fluctuations in several quarters, such as a slight dip from $7.62 in October 2022 to $6.54 in April 2023, followed by recovery. Notably, in the latest quarter observed (July 2025), OPPS decreased to $5.95, marking a significant drop from the prior peak. This suggests a recent contraction in operating profit per share, which may warrant further investigation.
Price-to-Operating Profit Ratio (P/OP)
The P/OP ratio displayed considerable variability over the period, reflecting changing market valuation relative to operating earnings. Early 2020 ratios hovered around 48–60, with a notable surge to 75.64 in October 2021. Fluctuations continued thereafter, ranging between mid-40s to mid-60s through mid-2024. A dramatic spike to 101.65 was observed in the final quarter of the dataset, coinciding with the sharp decrease in operating profit per share. This elevated ratio indicates that the share price may have become substantially higher relative to operating profit, which could imply overvaluation or market anticipation of future performance improvements despite recent profit contractions.
Comprehensive Observations
The overall data set reveals robust growth in both share price and operating profitability over multiple years, highlighting positive operational momentum. However, increased volatility in the latter period, especially the divergence between the share price and operating profits, suggests shifts in market perception and underlying earnings performance. The recent decline in operating profit per share juxtaposed with a high price-to-operating profit ratio points to potential risks in earnings sustainability or changed investor expectations. Monitoring future quarters will be essential to ascertain whether these trends signal a temporary adjustment or a more sustained pattern.

Price to Sales (P/S)

Synopsys Inc., historical P/S calculation (quarterly data)

Microsoft Excel
Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
No. shares of common stock outstanding1
Selected Financial Data (US$)
Revenue (in thousands)
Sales per share2
Share price1, 3
Valuation Ratio
P/S ratio4
Benchmarks
P/S Ratio, Competitors5
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.

Based on: 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2025 Calculation
Sales per share = (RevenueQ3 2025 + RevenueQ2 2025 + RevenueQ1 2025 + RevenueQ4 2024) ÷ No. shares of common stock outstanding
= ( + + + ) ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q3 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =

5 Click competitor name to see calculations.


The analysis of the financial data reveals several key trends over the multi-year period under review. The share price demonstrates considerable growth overall, though it exhibits episodes of volatility and downward adjustments at certain intervals. Sales per share steadily increase across most periods, indicating consistent revenue expansion per share despite some fluctuations towards the end. The Price-to-Sales (P/S) ratio trends upward significantly, reflecting growing investor valuation relative to sales but with notable variations between quarters.

Share Price
The share price showed a strong upward trajectory from early 2020 through the end of 2023, rising from approximately $149 to a peak around $567. This growth was punctuated by periods of price correction, such as the decline around early 2022 where the price dropped from $362 to $287. In 2024, the share price fluctuated, experiencing a downward trend during the middle part of the year before increasing again towards the final quarter. This pattern reflects a generally positive investor sentiment with intermittent profit-taking or external market impacts causing short-term declines.
Sales per Share
Sales per share values exhibit a consistent upward trend throughout the entire period, growing from $22.46 at the beginning of 2020 to a peak near $40 in mid-2025 before a slight reduction to $34.65 in the latest quarter. This indicates sustained improvements in revenue generation relative to the company's share count. The gradual growth suggests efficient scaling of sales, although the dip in the last quarter may warrant further monitoring for potential underlying causes such as market conditions or business cycle effects.
Price-to-Sales (P/S) Ratio
The P/S ratio generally increases over time, starting at 6.65 in early 2020 and reaching above 17 by the latest period. This rise suggests that the market increasingly values the company’s sales more highly, possibly due to expectations of future growth, improved profitability, or competitive advantages. However, the ratio exhibits volatility—such as decreases in mid-2020 and again in early 2022—indicating periods where the share price adjusted downward relative to sales or sales grew while the share price remained stable or fell.

In summary, sales per share growth indicates stable operational expansion. The rising share price with episodes of volatility reflects a positive but cautious market view. The increasing P/S ratio denotes enhanced market valuation relative to sales, albeit with fluctuations that might correspond to market sentiment shifts or company-specific events. Continued observation of earnings and market conditions will be critical to interpret future valuation movements accurately.


Price to Book Value (P/BV)

Synopsys Inc., historical P/BV calculation (quarterly data)

Microsoft Excel
Jul 31, 2025 Apr 30, 2025 Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020
No. shares of common stock outstanding1
Selected Financial Data (US$)
Total Synopsys stockholders’ equity (in thousands)
Book value per share (BVPS)2
Share price1, 3
Valuation Ratio
P/BV ratio4
Benchmarks
P/BV Ratio, Competitors5
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.

Based on: 10-Q (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-K (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2025 Calculation
BVPS = Total Synopsys stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =

3 Closing price as at the filing date of Synopsys Inc. Quarterly or Annual Report.

4 Q3 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =

5 Click competitor name to see calculations.


The share price of the company demonstrates a generally upward trend with some fluctuations over the observed quarters. Starting at $149.33, the price rose steadily and reached peaks exceeding $500 in the later periods, indicating significant market appreciation. However, notable volatility occurred, particularly between early 2022 and 2025, with some corrections observed after sharp increases.

The book value per share (BVPS) shows consistent growth throughout the periods, progressing from $27.62 to $148.67. This steady rise reflects an increase in the company's net asset value on a per-share basis, suggesting ongoing value accumulation and potentially improved financial stability.

Price-to-Book Value (P/BV) ratio exhibits considerable variation, beginning at 5.41 and peaking above 14. Notably, the P/BV ratio increased substantially during certain intervals, especially around late 2021 and early 2023, indicating that the market price was growing faster than the book value. Towards the end of the timeline, after reaching highs, the ratio showed a declining pattern, moving from 14.02 down to approximately 4.07. This decline may suggest a market revaluation aligning closer to the company’s book value or a correction in share price relative to assets.

Share Price Trend
Marked overall growth with episodic volatility; substantial increase in later periods reflecting market optimism or performance expectations.
Book Value Per Share (BVPS)
Consistent upward trajectory indicating strengthening underlying asset base per share.
P/BV Ratio
Significant fluctuations with peaks indicating high investor confidence or market overvaluation, followed by a downward adjustment suggesting market price realignment with book value.

In summary, the company’s financial metrics reveal strengthening fundamentals via rising book value, coupled with fluctuating investor valuation represented by the varying P/BV ratio. The share price movements align with these trends, reflecting periods of enthusiasm and correction within the studied timeframe.