DCF Tool

SNPS

Synopsys, Inc. – Software Publishers
synopsys, inc. (nasdaq:snps) is the silicon to software™ partner for innovative companies developing the electronic products and software applications we rely on every day. as the world’s 15th largest software company, synopsys has a long history of being a global leader in electronic design automation (eda) and semiconductor ip and is also growing its leadership in software quality and security solutions. whether you’re a system-on-chip (soc) designer creating advanced semiconductors, or a software developer writing applications that require the highest quality and security, synopsys has the solutions needed to deliver smart, secure products for the era of connected everything. the company is headquartered in mountain view, california, and has approximately 113 offices located throughout north america, south america, europe, japan, asia and india. since 1986, synopsys has been at the heart of accelerating electronics innovation with engineers around the world having used synopsys tech
Analysis Results
Intrinsic Value $214.14
Latest Price $594.32
Relative Value 178% 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 23.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.3%, 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)
2024 1.59 1.44
2025 1.97 1.61
2026 2.43 1.79
2027 2.99 1.99
2028 3.69 2.22
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 43.4 billion. This corresponds to a present value of 23.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.05 billion. Adding in the terminal value gives a total present value of 32.7 billion.

There are presently 153.0 million outstanding shares, so the intrinsic value per share is 214.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,430,624,000
Current Cash 1,590,552,000
Current Liabilities 2,985,451,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,145,379,000
Change in NCWC 181,972,000
EBIT 1,346,261,000
Tax Provision 83,657,000
Depreciation and Amortization 247,120,000
Capital Expenditure -191,822,000
Unlevered Free Cash Flow 1,497,015,626
Current Assets 3,012,669,000
Current Cash 1,565,521,000
Current Liabilities 2,774,499,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,327,351,000
Change in NCWC -216,411,000
EBIT 1,174,095,000
Tax Provision 137,078,000
Depreciation and Amortization 228,405,000
Capital Expenditure -139,082,000
Unlevered Free Cash Flow 902,730,375
Current Assets 2,808,341,000
Current Cash 1,580,789,000
Current Liabilities 2,413,484,000
Current Debt 74,992,000
Non-Cash Working Capital (NCWC) -1,110,940,000
Change in NCWC -311,666,000
EBIT 768,195,000
Tax Provision 49,155,000
Depreciation and Amortization 203,676,000
Capital Expenditure -95,740,000
Unlevered Free Cash Flow 517,587,322
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 209,986,000
Capital Expenditure -158,762,000
Unlevered Free Cash Flow 632,669,000
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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