DCF Tool

SNPS

Synopsys, Inc. – Software Publishers
Synopsys, is the Silicon to Softwareâ„¢ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products.
Analysis Results
Intrinsic Value $73.04
Latest Price $313.89
Relative Value 330% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 12.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.86 0.765
2023 0.986 0.78
2024 1.13 0.795
2025 1.3 0.811
2026 1.48 0.827
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14.5 billion. This corresponds to a present value of 7.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.98 billion. Adding in the terminal value gives a total present value of 11.2 billion.

There are presently 153.0 million outstanding shares, so the intrinsic value per share is 73.04.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,616,682,000
Current Cash 3,161,578,000
Current Liabilities 4,826,968,000
Current Debt 149,984,000
Non-Cash Working Capital (NCWC) -2,221,880,000
Change in NCWC -1,422,606,000
EBIT 1,536,390,000
Tax Provision 98,310,000
Depreciation and Amortization 580,642,000
Capital Expenditure -191,480,000
Unlevered Free Cash Flow 409,190,645
Current Assets 2,549,217,000
Current Cash 1,235,653,000
Current Liabilities 2,139,922,000
Current Debt 27,084,000
Non-Cash Working Capital (NCWC) -799,274,000
Change in NCWC -74,755,000
EBIT 656,200,000
Tax Provision -25,288,000
Depreciation and Amortization 292,881,000
Capital Expenditure -158,762,000
Unlevered Free Cash Flow 715,564,000
Current Assets 1,738,917,000
Current Cash 728,597,000
Current Liabilities 1,752,453,000
Current Debt 17,614,000
Non-Cash Working Capital (NCWC) -724,519,000
Change in NCWC 213,445,000
EBIT 567,417,000
Tax Provision 13,139,000
Depreciation and Amortization 201,676,000
Capital Expenditure -202,388,000
Unlevered Free Cash Flow 766,483,253
Current Assets 1,543,797,000
Current Cash 723,115,000
Current Liabilities 2,102,415,000
Current Debt 343,769,000
Non-Cash Working Capital (NCWC) -937,964,000
Change in NCWC 31,984,000
EBIT 373,170,000
Tax Provision -68,975,000
Depreciation and Amortization 209,207,000
Capital Expenditure -101,926,000
Unlevered Free Cash Flow 512,435,000
Current Assets 1,682,593,000
Current Cash 1,048,356,000
Current Liabilities 1,614,109,000
Current Debt 9,924,000
Non-Cash Working Capital (NCWC) -969,948,000
Change in NCWC -59,625,000
EBIT 384,149,000
Tax Provision 246,535,000
Depreciation and Amortization 189,442,000
Capital Expenditure -73,554,000
Unlevered Free Cash Flow 193,200,650
Current Assets 1,716,938,000
Current Cash 1,117,315,000
Current Liabilities 1,714,946,000
Current Debt 205,000,000
Non-Cash Working Capital (NCWC) -910,323,000
Change in NCWC -135,836,000
EBIT 327,028,000
Tax Provision 62,722,000
Depreciation and Amortization 207,032,000
Capital Expenditure -71,040,000
Unlevered Free Cash Flow 264,941,624
Current Assets 1,563,801,000
Current Cash 964,935,000
Current Liabilities 1,578,353,000
Current Debt 205,000,000
Non-Cash Working Capital (NCWC) -774,487,000
Change in NCWC 63,299,000
EBIT 281,554,000
Tax Provision 55,676,000
Depreciation and Amortization 211,821,000
Capital Expenditure -90,647,000
Unlevered Free Cash Flow 410,362,071
Current Assets 1,504,735,000
Current Cash 985,762,000
Current Liabilities 1,386,759,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -837,786,000
Change in NCWC -70,403,000
EBIT 248,717,000
Tax Provision 13,018,000
Depreciation and Amortization 192,826,000
Capital Expenditure -103,275,000
Unlevered Free Cash Flow 255,967,542
Current Assets 1,447,977,000
Current Cash 1,022,441,000
Current Liabilities 1,222,919,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -767,383,000
Change in NCWC 14,982,000
EBIT 246,493,000
Tax Provision 27,866,000
Depreciation and Amortization 187,404,000
Capital Expenditure -69,068,000
Unlevered Free Cash Flow 354,893,984
Current Assets 1,140,656,000
Current Cash 700,382,000
Current Liabilities 1,252,639,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -782,365,000
Change in NCWC -107,536,000
EBIT 190,024,000
Tax Provision 18,733,000
Depreciation and Amortization 156,840,000
Capital Expenditure -57,493,000
Unlevered Free Cash Flow 164,136,839

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