/
DCF Valuation
Base-case fair value
$322.55
Intrinsic $430.06 · 25% MOS
Current price: $464.85
Base-case summary
Our base-case DCF for Synopsys Inc (SNPS) projects 10 years of free cash flow growth at 13.5% for years 1–5 and 6.8% for years 6–10, anchored to 13.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $2.6B in trailing free cash flow, this produces an intrinsic value of $430.06 per share. A 25% safety margin gives a fair value of $322.55, suggesting the stock is currently 31% overvalued against the $464.85 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$2.6B
Cash & equivalents
$2.5B
Total debt
$10.8B
Shares outstanding
192M