Synopsys (SNPS) - 20.34% Below 52-Week High: Buy or Wait?

Stock Details

Synopsys, Inc. (SNPS), a prominent company in the technology sector within the software - infrastructure industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $429.73. Over the past 52 weeks, it has ranged between $362.55 and $539.48. This places the current price at 79.7% of its 52-week high and 18.5% above its 52-week low. Recent trading volume was recorded at 1,363,571. The 14-day Relative Strength Index (RSI) stands at 42.39, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $430.87 by 0.26%. Similarly, it is below its 200-day moving average of $444.58 by 3.34%. The MACD histogram is -9.06, indicating bearish momentum (MACD Line: 3.18, Signal Line: 12.24). The International Securities Identification Number (ISIN) for this stock is US8716071076.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

76.00

Above market average

Forward P/E

22.96

Earnings expected to grow

PEG Ratio

2.20

Potentially overvalued

Price to Book

2.65

EV/EBITDA

43.20

EPS (TTM)

$5.66

Price to Sales

8.75

Beta

1.21

Similar volatility to market

Q:How is SNPS valued relative to its earnings and growth?

Synopsys, Inc. trades at a P/E ratio of 76.00, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 22.96 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.20 indicates a premium valuation even accounting for growth.

Q:What is SNPS's risk profile compared to the market?

With a beta of 1.21, Synopsys, Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.65 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

11.43%

Operating Margin

14.52%

EBITDA

$2.08B

Return on Equity

3.66%

Return on Assets

1.35%

Revenue Growth (YoY)

42.40%

Earnings Growth (YoY)

89.30%

Q:How profitable and efficient is SNPS's business model?

Synopsys, Inc. achieves a profit margin of 11.43%, meaning it retains $11.43 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.52% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 3.66% and ROA at 1.35%, the company achieves moderate returns on invested capital.

Q:What are SNPS's recent growth trends?

Synopsys, Inc.'s revenue grew by 42.40% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 89.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Software - Infrastructure industry averages for proper context.

Company Size & Market

Market Cap

$82.4B

Revenue (TTM)

$9.42B

Revenue/Share (TTM)

$49.64

Shares Outstanding

191.64M

Book Value/Share

$162.59

Asset Type

EQUITY

Q:What is SNPS's market capitalization and position?

Synopsys, Inc. has a market capitalization of $82.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 191.64M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Software - Infrastructure industry, it competes with other firms in this sector.

Q:How does SNPS's price compare to its book value?

Synopsys, Inc.'s book value per share is $162.59, while the current stock price is $429.73, resulting in a price-to-book (P/B) ratio of 2.64. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$586.95

36.58% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for SNPS?

25 analysts cover SNPS with 76% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $586.95 implies 36.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on SNPS?

Current analyst recommendations:2 Strong Buy, 17 Buy, 5 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 24, 2026, 02:15 AM

Technical Indicators

RSI (14-day)

42.39

Neutral

50-Day Moving Average

$430.87

-0.26% below MA-50

200-Day Moving Average

$444.58

-3.34% below MA-200

MACD Line

3.18

MACD Signal

12.24

MACD Histogram

-9.06

Bearish

Q:What does SNPS's RSI value tell investors?

The RSI (Relative Strength Index) for SNPS is currently 42.39, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.

Q:How should traders interpret SNPS's MACD and moving average crossovers?

MACD analysis shows the MACD line at 3.18 below the signal line at 12.24, with histogram at -9.06. This bearish crossover indicates downward pressure. The wide histogram confirms strong momentum. The 50-day MA ($430.87) is below the 200-day MA ($444.58), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 24, 2026, 12:58 AM

Synopsys, Inc. (SNPS) Stock