Intrinsic value of Synopsys - SNPS

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$74.59

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SNPS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.07
  14.80
  13.82
  12.94
  12.14
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
Revenue, $m
  2,423
  2,782
  3,166
  3,576
  4,010
  4,468
  4,950
  5,455
  5,984
  6,536
  7,111
  7,709
  8,332
  8,979
  9,651
  10,350
  11,077
  11,832
  12,617
  13,433
  14,282
  15,167
  16,088
  17,047
  18,048
  19,091
  20,180
  21,317
  22,504
  23,745
  25,042
Variable operating expenses, $m
 
  1,946
  2,180
  2,430
  2,694
  2,973
  3,267
  3,575
  3,897
  4,233
  4,583
  4,695
  5,075
  5,469
  5,878
  6,304
  6,747
  7,206
  7,684
  8,182
  8,699
  9,238
  9,799
  10,383
  10,993
  11,628
  12,291
  12,984
  13,707
  14,463
  15,252
Fixed operating expenses, $m
 
  397
  407
  417
  427
  438
  449
  460
  472
  483
  495
  508
  520
  533
  547
  560
  575
  589
  604
  619
  634
  650
  666
  683
  700
  717
  735
  754
  773
  792
  812
Total operating expenses, $m
  2,105
  2,343
  2,587
  2,847
  3,121
  3,411
  3,716
  4,035
  4,369
  4,716
  5,078
  5,203
  5,595
  6,002
  6,425
  6,864
  7,322
  7,795
  8,288
  8,801
  9,333
  9,888
  10,465
  11,066
  11,693
  12,345
  13,026
  13,738
  14,480
  15,255
  16,064
Operating income, $m
  317
  439
  579
  729
  889
  1,057
  1,235
  1,421
  1,616
  1,820
  2,032
  2,506
  2,737
  2,976
  3,226
  3,486
  3,756
  4,036
  4,328
  4,633
  4,949
  5,279
  5,623
  5,981
  6,355
  6,746
  7,153
  7,579
  8,025
  8,490
  8,978
EBITDA, $m
  524
  727
  872
  1,027
  1,192
  1,366
  1,550
  1,743
  1,945
  2,156
  2,376
  2,605
  2,844
  3,092
  3,350
  3,619
  3,898
  4,189
  4,491
  4,806
  5,133
  5,474
  5,830
  6,201
  6,588
  6,992
  7,414
  7,854
  8,315
  8,796
  9,300
Interest expense (income), $m
  4
  0
  9
  20
  31
  42
  54
  67
  80
  94
  109
  124
  140
  157
  174
  192
  210
  230
  250
  271
  292
  315
  338
  363
  388
  415
  442
  471
  502
  533
  566
Earnings before tax, $m
  330
  439
  570
  710
  858
  1,015
  1,180
  1,354
  1,536
  1,725
  1,923
  2,381
  2,596
  2,820
  3,052
  3,294
  3,545
  3,807
  4,079
  4,362
  4,657
  4,964
  5,285
  5,619
  5,967
  6,331
  6,711
  7,108
  7,523
  7,957
  8,412
Tax expense, $m
  63
  119
  154
  192
  232
  274
  319
  366
  415
  466
  519
  643
  701
  761
  824
  889
  957
  1,028
  1,101
  1,178
  1,257
  1,340
  1,427
  1,517
  1,611
  1,709
  1,812
  1,919
  2,031
  2,148
  2,271
Net income, $m
  267
  320
  416
  518
  626
  741
  862
  988
  1,121
  1,259
  1,404
  1,738
  1,895
  2,058
  2,228
  2,404
  2,588
  2,779
  2,978
  3,184
  3,400
  3,624
  3,858
  4,102
  4,356
  4,622
  4,899
  5,189
  5,492
  5,809
  6,140

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,117
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  5,240
  4,731
  5,384
  6,081
  6,820
  7,599
  8,419
  9,278
  10,177
  11,115
  12,093
  13,111
  14,169
  15,270
  16,414
  17,603
  18,838
  20,122
  21,457
  22,845
  24,290
  25,794
  27,360
  28,992
  30,694
  32,468
  34,320
  36,253
  38,273
  40,383
  42,588
Adjusted assets (=assets-cash), $m
  4,123
  4,731
  5,384
  6,081
  6,820
  7,599
  8,419
  9,278
  10,177
  11,115
  12,093
  13,111
  14,169
  15,270
  16,414
  17,603
  18,838
  20,122
  21,457
  22,845
  24,290
  25,794
  27,360
  28,992
  30,694
  32,468
  34,320
  36,253
  38,273
  40,383
  42,588
Revenue / Adjusted assets
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
Average production assets, $m
  444
  509
  579
  654
  734
  818
  906
  998
  1,095
  1,196
  1,301
  1,411
  1,525
  1,643
  1,766
  1,894
  2,027
  2,165
  2,309
  2,458
  2,614
  2,776
  2,944
  3,120
  3,303
  3,494
  3,693
  3,901
  4,118
  4,345
  4,583
Working capital, $m
  2
  -1,046
  -1,190
  -1,344
  -1,508
  -1,680
  -1,861
  -2,051
  -2,250
  -2,457
  -2,674
  -2,899
  -3,133
  -3,376
  -3,629
  -3,892
  -4,165
  -4,449
  -4,744
  -5,051
  -5,370
  -5,703
  -6,049
  -6,410
  -6,786
  -7,178
  -7,588
  -8,015
  -8,462
  -8,928
  -9,416
Total debt, $m
  205
  270
  561
  872
  1,202
  1,549
  1,915
  2,298
  2,699
  3,117
  3,553
  4,007
  4,480
  4,970
  5,481
  6,011
  6,562
  7,134
  7,730
  8,349
  8,993
  9,664
  10,363
  11,090
  11,849
  12,641
  13,467
  14,329
  15,230
  16,171
  17,154
Total liabilities, $m
  2,045
  2,110
  2,401
  2,712
  3,042
  3,389
  3,755
  4,138
  4,539
  4,957
  5,393
  5,847
  6,320
  6,810
  7,321
  7,851
  8,402
  8,974
  9,570
  10,189
  10,833
  11,504
  12,203
  12,930
  13,689
  14,481
  15,307
  16,169
  17,070
  18,011
  18,994
Total equity, $m
  3,195
  2,621
  2,983
  3,369
  3,778
  4,210
  4,664
  5,140
  5,638
  6,158
  6,699
  7,263
  7,850
  8,460
  9,093
  9,752
  10,436
  11,147
  11,887
  12,656
  13,457
  14,290
  15,157
  16,062
  17,004
  17,987
  19,013
  20,084
  21,203
  22,372
  23,594
Total liabilities and equity, $m
  5,240
  4,731
  5,384
  6,081
  6,820
  7,599
  8,419
  9,278
  10,177
  11,115
  12,092
  13,110
  14,170
  15,270
  16,414
  17,603
  18,838
  20,121
  21,457
  22,845
  24,290
  25,794
  27,360
  28,992
  30,693
  32,468
  34,320
  36,253
  38,273
  40,383
  42,588
Debt-to-equity ratio
  0.064
  0.100
  0.190
  0.260
  0.320
  0.370
  0.410
  0.450
  0.480
  0.510
  0.530
  0.550
  0.570
  0.590
  0.600
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.680
  0.680
  0.690
  0.700
  0.700
  0.710
  0.710
  0.720
  0.720
  0.730
Adjusted equity ratio
  0.504
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554
  0.554

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  267
  320
  416
  518
  626
  741
  862
  988
  1,121
  1,259
  1,404
  1,738
  1,895
  2,058
  2,228
  2,404
  2,588
  2,779
  2,978
  3,184
  3,400
  3,624
  3,858
  4,102
  4,356
  4,622
  4,899
  5,189
  5,492
  5,809
  6,140
Depreciation, amort., depletion, $m
  207
  288
  293
  298
  303
  309
  316
  322
  329
  336
  343
  99
  107
  116
  124
  133
  143
  152
  163
  173
  184
  195
  207
  220
  233
  246
  260
  275
  290
  306
  323
Funds from operations, $m
  615
  608
  709
  816
  930
  1,050
  1,177
  1,310
  1,450
  1,596
  1,747
  1,838
  2,003
  2,174
  2,352
  2,538
  2,731
  2,931
  3,140
  3,357
  3,584
  3,819
  4,065
  4,321
  4,589
  4,868
  5,159
  5,464
  5,782
  6,115
  6,463
Change in working capital, $m
  28
  -135
  -145
  -154
  -163
  -172
  -181
  -190
  -199
  -207
  -216
  -225
  -234
  -243
  -253
  -263
  -273
  -284
  -295
  -307
  -319
  -332
  -346
  -361
  -376
  -392
  -409
  -427
  -446
  -466
  -488
Cash from operations, $m
  587
  823
  853
  970
  1,093
  1,223
  1,358
  1,500
  1,649
  1,803
  1,964
  2,063
  2,237
  2,417
  2,605
  2,801
  3,004
  3,215
  3,435
  3,664
  3,903
  4,152
  4,411
  4,682
  4,965
  5,260
  5,569
  5,891
  6,228
  6,581
  6,951
Maintenance CAPEX, $m
  0
  -31
  -36
  -41
  -46
  -52
  -58
  -64
  -70
  -77
  -84
  -92
  -99
  -107
  -116
  -124
  -133
  -143
  -152
  -163
  -173
  -184
  -195
  -207
  -220
  -233
  -246
  -260
  -275
  -290
  -306
New CAPEX, $m
  -131
  -65
  -70
  -75
  -79
  -84
  -88
  -92
  -97
  -101
  -105
  -110
  -114
  -118
  -123
  -128
  -133
  -138
  -144
  -149
  -155
  -162
  -169
  -176
  -183
  -191
  -199
  -208
  -217
  -227
  -237
Cash from investing activities, $m
  -143
  -96
  -106
  -116
  -125
  -136
  -146
  -156
  -167
  -178
  -189
  -202
  -213
  -225
  -239
  -252
  -266
  -281
  -296
  -312
  -328
  -346
  -364
  -383
  -403
  -424
  -445
  -468
  -492
  -517
  -543
Free cash flow, $m
  444
  727
  747
  854
  968
  1,087
  1,213
  1,344
  1,482
  1,625
  1,774
  1,862
  2,023
  2,192
  2,367
  2,548
  2,738
  2,934
  3,139
  3,352
  3,574
  3,806
  4,047
  4,299
  4,562
  4,836
  5,123
  5,423
  5,736
  6,064
  6,407
Issuance/(repayment) of debt, $m
  0
  270
  292
  311
  329
  348
  366
  383
  401
  418
  436
  454
  472
  491
  510
  530
  551
  573
  595
  619
  644
  671
  699
  728
  759
  791
  826
  862
  901
  941
  984
Issuance/(repurchase) of shares, $m
  -275
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -307
  270
  292
  311
  329
  348
  366
  383
  401
  418
  436
  454
  472
  491
  510
  530
  551
  573
  595
  619
  644
  671
  699
  728
  759
  791
  826
  862
  901
  941
  984
Total cash flow (excl. dividends), $m
  140
  996
  1,039
  1,165
  1,297
  1,435
  1,578
  1,727
  1,882
  2,043
  2,210
  2,316
  2,496
  2,683
  2,877
  3,079
  3,288
  3,507
  3,735
  3,972
  4,219
  4,477
  4,746
  5,027
  5,321
  5,628
  5,949
  6,285
  6,637
  7,005
  7,391
Retained Cash Flow (-), $m
  -61
  -338
  -362
  -386
  -409
  -432
  -454
  -476
  -498
  -520
  -542
  -564
  -587
  -610
  -634
  -659
  -684
  -711
  -740
  -769
  -800
  -833
  -868
  -904
  -943
  -983
  -1,026
  -1,071
  -1,119
  -1,169
  -1,222
Prev. year cash balance distribution, $m
 
  912
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,571
  676
  779
  888
  1,003
  1,124
  1,251
  1,384
  1,524
  1,669
  1,752
  1,909
  2,073
  2,243
  2,420
  2,604
  2,796
  2,995
  3,202
  3,418
  3,644
  3,878
  4,123
  4,378
  4,645
  4,923
  5,214
  5,518
  5,836
  6,169
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,506
  619
  678
  731
  777
  816
  845
  865
  875
  875
  832
  815
  788
  753
  710
  662
  608
  552
  493
  434
  377
  322
  270
  223
  181
  144
  112
  85
  64
  46
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits (ICs). It offers Galaxy Design platform that provides IC design solutions; Verification Continuum Platform, which offers virtual prototyping, static and formal verification, simulation, emulation, field-programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. The company also provides DesignWare intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, SATA, MIPI, HDMI, and Bluetooth low energy applications; analog IP, including data converters and audio codecs; and system-on-chip infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating point components, and ARM AMBA interconnect fabric and peripherals. In addition, it offers logic libraries and embedded memories; configurable processor cores and application-specific instruction-set processor tools for embedded applications; IP subsystems for audio, sensor, and data fusion functionality; and security IP solutions. Further, the company provides Platform Architect tools for SoC architecture analysis and optimization; virtual prototyping solutions for creating virtual prototypes and virtualizer development kits; physical prototyping solutions consisting of HAPS hardware and HAPS protocompiler tools; and hybrid prototyping solutions, as well as a series of tools used in the design of optical systems and photonic devices. Additionally, it offers software quality and security testing tools that help companies reduce the risk of defects and vulnerabilities in development, as well as across the software supply chain; manufacturing solutions that enable semiconductor manufacturers to develop fabrication processes; and professional services and others. The company was founded in 1986 and is headquartered in Mountain View, California.

FINANCIAL RATIOS  of  Synopsys (SNPS)

Valuation Ratios
P/E Ratio 42.3
Price to Sales 4.7
Price to Book 3.5
Price to Tangible Book
Price to Cash Flow 19.2
Price to Free Cash Flow 24.8
Growth Rates
Sales Growth Rate 8.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -69.6%
Cap. Spend. - 3 Yr. Gr. Rate 13.7%
Financial Strength
Quick Ratio 5
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 6.4%
Interest Coverage 84
Management Effectiveness
Return On Assets 5.3%
Ret/ On Assets - 3 Yr. Avg. 5.2%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 7.8%
Return On Equity 8.4%
Return On Equity - 3 Yr. Avg. 8.2%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 77.6%
Gross Margin - 3 Yr. Avg. 77.4%
EBITDA Margin 22.3%
EBITDA Margin - 3 Yr. Avg. 22.4%
Operating Margin 13.1%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 13.6%
Pre-Tax Margin - 3 Yr. Avg. 13.1%
Net Profit Margin 11%
Net Profit Margin - 3 Yr. Avg. 11.2%
Effective Tax Rate 19.1%
Eff/ Tax Rate - 3 Yr. Avg. 14.6%
Payout Ratio 0%

SNPS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SNPS stock intrinsic value calculation we used $2423 million for the last fiscal year's total revenue generated by Synopsys. The default revenue input number comes from 2016 income statement of Synopsys. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SNPS stock valuation model: a) initial revenue growth rate of 14.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SNPS is calculated based on our internal credit rating of Synopsys, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Synopsys.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SNPS stock the variable cost ratio is equal to 71.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $387 million in the base year in the intrinsic value calculation for SNPS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Synopsys.

Corporate tax rate of 27% is the nominal tax rate for Synopsys. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SNPS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SNPS are equal to 18.3%.

Life of production assets of 14.2 years is the average useful life of capital assets used in Synopsys operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SNPS is equal to -37.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3195 million for Synopsys - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 148.81 million for Synopsys is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Synopsys at the current share price and the inputted number of shares is $11.1 billion.


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COMPANY NEWS

▶ Toshiba Selects Synopsys VC Formal Verification Solution   [Jun-15-17 09:05AM  PR Newswire]
▶ ETFs with exposure to Synopsys, Inc. : May 26, 2017   [May-26-17 01:26PM  Capital Cube]
▶ CAD Software Firm Autodesk Soars On Quarterly Earnings Beat   [May-18-17 05:18PM  Investor's Business Daily]
▶ Synopsys beats Street 2Q forecasts   [May-17-17 04:18PM  Associated Press]
▶ Internet Giant To Join China Parade; Cisco Near Entry: Investing Action Plan   [May-16-17 04:42PM  Investor's Business Daily]
▶ This Top Software Stock Is Breaking Out; 3 Others Are In Buy Range   [May-15-17 04:15PM  Investor's Business Daily]
▶ Cadence Design Stock Slips On Disappointing Guidance   [Apr-25-17 04:55PM  Investor's Business Daily]
▶ These 3 Software Makers Broke Out To Buys, But With A Design Flaw   [Apr-24-17 04:18PM  Investor's Business Daily]
▶ Which Stocks May Profit From Self-Driving Cars? Here's One   [Mar-31-17 04:05PM  Investor's Business Daily]
▶ Breakout Watch: This IoT Stock Helps Self-Driving Cars See   [Mar-30-17 09:12PM  Investor's Business Daily]
▶ Will A Market Rebound Unleash These Potential Breakout Stocks?   [Mar-27-17 01:06PM  Investor's Business Daily]
▶ Will These Stocks Pop When The Market Rebounds?   [Mar-23-17 04:49PM  Investor's Business Daily]
▶ Synopsys to be added to S&P 500   [Mar-13-17 07:09PM  at MarketWatch]
Stock chart of SNPS Financial statements of SNPS Annual reports of SNPS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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