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Intrinsic Value of Synopsys, Inc. (SNPS)

Previous Close$450.72
Intrinsic Value
Upside potential
Previous Close
$450.72

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2022-10-31 and quarterly data as of 2023-07-31.

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2022(a)2023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047

INCOME STATEMENT

Revenue growth rate, %20.9NaN
Revenue, $5082NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m3920NaN
Operating income, $m1162NaN
EBITDA, $m1463NaN
Interest expense (income), $mNaN
Earnings before tax, $m1122NaN
Tax expense, $m137NaN
Net income, $m985NaN

BALANCE SHEET

Cash and short-term investments, $m1566NaN
Total assets, $m9418NaN
Adjusted assets (=assets-cash), $m7853NaN
Average production assets, $m4520NaN
Working capital, $m238NaN
Total debt, $m75NaN
Total liabilities, $m3898NaN
Total equity, $m5521NaN
Debt-to-equity ratio0.014NaN
Adjusted equity ratio0.511NaN

CASH FLOW

Net income, $m985NaN
Depreciation, amort., depletion, $m301NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m1739NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-139NaN
Free cash flow, $m1878NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m238
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN

Company description

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as a series of tools used in the design of optical systems and photonic devices. Further, it provides security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. The company serves electronics, financial services, automotive, medicine, energy, and industrial areas. It has a strategic partnership with Intel Corporation to develop EDA and IP solutions. Synopsys, Inc. was incorporated in 1986 and is headquartered in Mountain View, California.
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