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DCF valuation

What is Synopsys Inc worth?

With the base-case assumptions below, a discounted cash flow model on Synopsys Inc's reported free cash flow gives $215.18 per share. The share price was $425.76 on September 25, 2026, 98% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.35B
Average free cash flow, last 5 years
$1.43B
Cash
$3.61B
balance sheet of July 31, 2026
Debt
$10.04B
balance sheet of July 31, 2026
Diluted shares, fiscal 2025
165,656,000
Revenue growth per year, last 5 years
13.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear9.0%5.5%2.0%10.0%$115.69-73%
Base14.0%8.5%2.5%9.0%$215.18-49%
Bull19.0%11.0%3.0%8.0%$400.51-6%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$290.13$313.44$341.95$377.57$423.38
8.0%$233.86$248.99$266.86$288.30$314.52
9.0%$192.91$203.25$215.18$229.10$245.55
10.0%$161.85$169.20$177.53$187.06$198.04
11.0%$137.53$142.92$148.94$155.72$163.40

Where the presets come from

Base: years 1 to 5 grow at Synopsys Inc's revenue growth rate over the last 5 fiscal years (13.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Synopsys Inc company page