Synopsys Inc: what the price is pricing in

The price implies cash-flow growth of 28.5% a year; our model expects 13.0%. That gap is wide enough for a short position this quarter. Switch lens below to see the same question asked of earnings, growth, sales and book value.

No published rating for Synopsys Inc: held for review: after-tax interest is 53% of the cash flow left for shareholders; our flat discount rate doesn't yet reflect debt this heavy. The readings below run our models backwards for research and show how trading the gap would have done; they are not a valuation or a rating. The valuation page shows the models and their status.

What growth in cash flow is the price paying for?

The price implies cash-flow growth of 28.5% a year; our model expects 13.0%.

Market more optimistic than our model: short this quarter

What the price implies What our model expects

Quarters with a position3712 long, 25 short, since September 30, 2011

Beat the S&P 50018 of 3748.6% of quarters held

Strategy against the index−31.6%cumulative; worst fall -64.0%

$10,000 became$62,003S&P 500 bought and held: $87,527

Over time

The growth in owner earnings (free cash flow after stock-based pay) that would justify the share price in our discounted-cash-flow model, against the growth the model itself assumes from the company's record.

Growth our model assumes Growth the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

StrategyS&P 500, buy and hold Hypothetical, before costs. The strategy holds the S&P 500 and only changes on a signal: it switches into SNPS in long quarters and adds a short of SNPS in short quarters. The gap between the lines is what the signal added or lost.

Skill or luck?

In plain English: Across 37 quarters with a position, this lens beat the S&P 500 in 18, by −0.6% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	12	50.0%	−1.0%	−0.6%	−4.2%	-1.06	No reliable evidence
Shorts	25	48.0%	−0.4%	−0.5%	−3.9%	-0.19	No reliable evidence
All positions	37	48.6%	−0.6%	−0.5%	−4.0%	-0.42	No reliable evidence

Each position is measured against the S&P 500 over the same quarter: a long earns the stock's return minus the index's, a short the index's minus the stock's. "A year" compounds the per-quarter results. Evidence: strong at a t-statistic of 2 or more, some from 1.5; "worse" when the result is that far below zero; one company's history is a small sample, so read these alongside the results across all companies.

Every quarter (61)

From	Price paid	Growth the price implies	Growth our model assumes	Position	SNPS	S&P 500
September 30, 2026 (open)	$434.94	28.5%	13.0%	Short	+8.4%	−0.8%
June 30, 2026	$446.07	29.1%	13.0%	Short	−2.5%	+2.4%
March 31, 2026	$396.48	34.3%	13.3%	Short	+12.5%	+15.1%
December 31, 2025	$469.72	38.3%	8.6%	Short	−15.6%	−4.4%
September 30, 2025	$493.39	36.7%	8.4%	Short	−4.8%	+2.7%
June 30, 2025	$512.68	32.8%	9.5%	Short	−3.8%	+8.1%
March 31, 2025	$428.85	26.4%	12.9%	Short	+19.6%	+10.8%
December 31, 2024	$485.36	30.5%	13.3%	Short	−11.6%	−4.3%
September 30, 2024	$506.39	30.9%	12.8%	Short	−4.2%	+2.5%
June 30, 2024	$595.06	33.1%	10.9%	Short	−14.9%	+5.8%
March 31, 2024	$571.50	29.6%	10.5%	Short	+4.1%	+4.4%
December 31, 2023	$514.91	27.7%	10.4%	Short	+11.0%	+10.4%
September 30, 2023	$458.97	25.8%	11.6%	Short	+12.2%	+11.6%
June 30, 2023	$435.41	25.7%	15.1%	Short	+5.4%	−3.2%
March 31, 2023	$386.25	23.3%	17.8%	No position	+12.7%	+8.7%
December 31, 2022	$319.29	20.2%	17.9%	No position	+21.0%	+7.5%
September 30, 2022	$305.51	19.5%	16.6%	No position	+4.5%	+7.6%
June 30, 2022	$303.70	22.5%	15.1%	No position	+0.6%	−4.9%
March 31, 2022	$333.27	26.9%	12.3%	Short	−8.9%	−16.1%
December 31, 2021	$368.50	30.4%	13.3%	Short	−9.6%	−4.6%
September 30, 2021	$299.41	27.1%	13.9%	Short	+23.1%	+11.1%
June 30, 2021	$275.79	31.0%	11.8%	Short	+8.6%	+0.6%
March 31, 2021	$247.78	31.9%	10.1%	Short	+11.3%	+8.4%
December 31, 2020	$259.24	32.2%	8.0%	Short	−4.4%	+6.3%
September 30, 2020	$213.98	29.4%	7.4%	Short	+21.1%	+12.1%
June 30, 2020	$195.00	31.2%	8.4%	Short	+9.7%	+9.0%
March 31, 2020	$128.79	21.0%	9.6%	Short	+51.4%	+20.2%
December 31, 2019	$139.20	22.3%	10.5%	Short	−7.5%	−19.4%
September 30, 2019	$137.25	23.3%	10.9%	Short	+1.4%	+9.0%
June 30, 2019	$128.69	23.8%	11.7%	Short	+6.7%	+1.8%
March 31, 2019	$115.15	19.5%	13.1%	No position	+11.8%	+4.2%
December 31, 2018	$84.24	12.6%	12.4%	No position	+36.7%	+13.5%
September 30, 2018	$98.61	15.7%	12.3%	No position	−14.6%	−13.5%
June 30, 2018	$85.57	11.3%	11.8%	No position	+15.2%	+7.7%
March 31, 2018	$83.24	10.6%	11.2%	No position	+2.8%	+3.5%
December 31, 2017	$85.24	11.5%	10.8%	No position	−2.4%	−1.0%
September 30, 2017	$80.53	9.9%	10.3%	No position	+5.8%	+6.8%
June 30, 2017	$72.93	8.3%	9.5%	No position	+10.4%	+4.4%
March 31, 2017	$72.13	9.6%	7.7%	No position	+1.1%	+3.1%
December 31, 2016	$58.86	4.9%	7.9%	No position	+22.6%	+5.9%
September 30, 2016	$59.35	5.1%	7.3%	No position	−0.8%	+4.0%
June 30, 2016	$54.08	5.3%	7.5%	No position	+9.7%	+3.8%
March 31, 2016	$48.44	3.7%	8.7%	No position	+11.6%	+2.5%
December 31, 2015	$45.61	2.9%	8.7%	No position	+6.2%	+1.3%
September 30, 2015	$46.18	2.6%	9.3%	No position	−1.2%	+7.0%
June 30, 2015	$50.65	5.0%	8.9%	No position	−8.8%	−6.4%
March 31, 2015	$46.32	2.0%	7.5%	No position	+9.3%	+0.2%
December 31, 2014	$43.47	1.6%	7.9%	No position	+6.6%	+0.9%
September 30, 2014	$39.70	0.8%	8.3%	No position	+9.5%	+4.9%
June 30, 2014	$38.82	-0.7%	10.2%	Long	+2.3%	+1.1%
March 31, 2014	$38.41	-2.1%	12.1%	Long	+1.1%	+5.2%
December 31, 2013	$40.57	0.8%	12.7%	Long	−5.3%	+1.7%
September 30, 2013	$37.70	0.9%	13.0%	Long	+7.6%	+10.5%
June 30, 2013	$35.75	0.9%	13.1%	Long	+5.5%	+5.2%
March 31, 2013	$35.88	-0.6%	14.3%	Long	−0.4%	+2.9%
December 31, 2012	$31.84	-3.7%	11.3%	Long	+12.7%	+10.5%
September 30, 2012	$32.99	-1.2%	11.2%	Long	−3.5%	−0.4%
June 30, 2012	$29.43	-4.9%	12.8%	Long	+12.1%	+6.3%
March 31, 2012	$30.66	-3.4%	11.2%	Long	−4.0%	−2.8%
December 31, 2011	$27.20	-5.5%	13.2%	Long	+12.7%	+12.7%
September 30, 2011	$24.36	-4.3%	8.8%	Long	+11.7%	+11.6%

Price paid: the closing price that day as traded, before any later share split.

What growth in earnings is the price paying for?

The price implies earnings growth of 36.2% a year; our model expects 13.0%.

Market more optimistic than our model: short this quarter

What the price implies What our model expects

Quarters with a position223 long, 19 short, since September 30, 2011

Beat the S&P 50010 of 2245.5% of quarters held

Strategy against the index−29.3%cumulative; worst fall -50.4%

$10,000 became$63,996S&P 500 bought and held: $87,527

Over time

The earnings growth the price-to-earnings ratio requires, against the growth our model assumes. Net income is already after interest, so it is valued at the return shareholders require, plus spare cash (none for banks and insurers, whose cash is funded by deposits and policies), with no debt subtracted.

Growth our model assumes Growth the P/E implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 22 quarters with a position, this lens beat the S&P 500 in 10, by −1.2% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	3	66.7%	+1.5%	+0.0%	+6.1%	0.72	Too few quarters
Shorts	19	42.1%	−1.6%	−0.6%	−7.9%	-0.74	No reliable evidence
All positions	22	45.5%	−1.2%	−0.6%	−6.1%	-0.62	No reliable evidence

Every quarter (61)

From	Price paid	Growth the P/E implies	Growth our model assumes	Position	SNPS	S&P 500
September 30, 2026 (open)	$434.94	36.2%	13.0%	Short	+8.4%	−0.8%
June 30, 2026	$446.07	29.7%	13.0%	Short	−2.5%	+2.4%
March 31, 2026	$396.48	23.3%	13.3%	No position	+12.5%	+15.1%
December 31, 2025	$469.72	16.1%	8.6%	No position	−15.6%	−4.4%
September 30, 2025	$493.39	11.8%	8.4%	No position	−4.8%	+2.7%
June 30, 2025	$512.68	15.8%	9.5%	No position	−3.8%	+8.1%
March 31, 2025	$428.85	11.1%	12.9%	No position	+19.6%	+10.8%
December 31, 2024	$485.36	21.6%	13.3%	No position	−11.6%	−4.3%
September 30, 2024	$506.39	23.3%	12.8%	Short	−4.2%	+2.5%
June 30, 2024	$595.06	26.8%	10.9%	Short	−14.9%	+5.8%
March 31, 2024	$571.50	28.6%	10.5%	Short	+4.1%	+4.4%
December 31, 2023	$514.91	29.7%	10.4%	Short	+11.0%	+10.4%
September 30, 2023	$458.97	29.7%	11.6%	Short	+12.2%	+11.6%
June 30, 2023	$435.41	28.3%	15.1%	Short	+5.4%	−3.2%
March 31, 2023	$386.25	25.3%	17.8%	No position	+12.7%	+8.7%
December 31, 2022	$319.29	20.6%	17.9%	No position	+21.0%	+7.5%
September 30, 2022	$305.51	20.1%	16.6%	No position	+4.5%	+7.6%
June 30, 2022	$303.70	22.3%	15.1%	No position	+0.6%	−4.9%
March 31, 2022	$333.27	27.5%	12.3%	Short	−8.9%	−16.1%
December 31, 2021	$368.50	29.5%	13.3%	Short	−9.6%	−4.6%
September 30, 2021	$299.41	24.1%	13.9%	Short	+23.1%	+11.1%
June 30, 2021	$275.79	24.8%	11.8%	Short	+8.6%	+0.6%
March 31, 2021	$247.78	24.3%	10.1%	Short	+11.3%	+8.4%
December 31, 2020	$259.24	26.1%	8.0%	Short	−4.4%	+6.3%
September 30, 2020	$213.98	27.6%	7.4%	Short	+21.1%	+12.1%
June 30, 2020	$195.00	25.6%	8.4%	Short	+9.7%	+9.0%
March 31, 2020	$128.79	15.9%	9.6%	No position	+51.4%	+20.2%
December 31, 2019	$139.20	14.3%	10.5%	No position	−7.5%	−19.4%
September 30, 2019	$137.25	14.6%	10.9%	No position	+1.4%	+9.0%
June 30, 2019	$128.69	13.8%	11.7%	No position	+6.7%	+1.8%
March 31, 2019	$115.15	17.9%	13.1%	No position	+11.8%	+4.2%
December 31, 2018	$84.24	50.6%	12.4%	Short	+36.7%	+13.5%
September 30, 2018	$98.61	43.9%	12.3%	Short	−14.6%	−13.5%
June 30, 2018	$85.57	55.7%	11.8%	Short	+15.2%	+7.7%
March 31, 2018	$83.24	32.5%	11.2%	Short	+2.8%	+3.5%
December 31, 2017	$85.24	15.8%	10.8%	No position	−2.4%	−1.0%
September 30, 2017	$80.53	18.1%	10.3%	No position	+5.8%	+6.8%
June 30, 2017	$72.93	15.3%	9.5%	No position	+10.4%	+4.4%
March 31, 2017	$72.13	16.6%	7.7%	No position	+1.1%	+3.1%
December 31, 2016	$58.86	14.0%	7.9%	No position	+22.6%	+5.9%
September 30, 2016	$59.35	15.3%	7.3%	No position	−0.8%	+4.0%
June 30, 2016	$54.08	15.2%	7.5%	No position	+9.7%	+3.8%
March 31, 2016	$48.44	12.3%	8.7%	No position	+11.6%	+2.5%
December 31, 2015	$45.61	9.6%	8.7%	No position	+6.2%	+1.3%
September 30, 2015	$46.18	9.3%	9.3%	No position	−1.2%	+7.0%
June 30, 2015	$50.65	10.9%	8.9%	No position	−8.8%	−6.4%
March 31, 2015	$46.32	9.0%	7.5%	No position	+9.3%	+0.2%
December 31, 2014	$43.47	8.1%	7.9%	No position	+6.6%	+0.9%
September 30, 2014	$39.70	7.3%	8.3%	No position	+9.5%	+4.9%
June 30, 2014	$38.82	6.2%	10.2%	No position	+2.3%	+1.1%
March 31, 2014	$38.41	5.6%	12.1%	No position	+1.1%	+5.2%
December 31, 2013	$40.57	9.2%	12.7%	No position	−5.3%	+1.7%
September 30, 2013	$37.70	6.5%	13.0%	No position	+7.6%	+10.5%
June 30, 2013	$35.75	9.5%	13.1%	No position	+5.5%	+5.2%
March 31, 2013	$35.88	10.3%	14.3%	No position	−0.4%	+2.9%
December 31, 2012	$31.84	5.1%	11.3%	No position	+12.7%	+10.5%
September 30, 2012	$32.99	8.7%	11.2%	No position	−3.5%	−0.4%
June 30, 2012	$29.43	-0.1%	12.8%	Long	+12.1%	+6.3%
March 31, 2012	$30.66	1.2%	11.2%	Long	−4.0%	−2.8%
December 31, 2011	$27.20	-0.4%	13.2%	Long	+12.7%	+12.7%
September 30, 2011	$24.36	0.0%	8.8%	No position	+11.7%	+11.6%

Price paid: the closing price that day as traded, before any later share split.

Is the price-to-earnings ratio cheap or dear for the growth delivered?

No current reading. The latest is from June 30, 2026: the figures this lens needs have not been filed recently enough (or no longer apply), so there is no position this quarter.

Quarters with a position264 long, 22 short, since March 31, 2014

Beat the S&P 50011 of 2642.3% of quarters held

Strategy against the index−38.9%cumulative; worst fall -50.0%

$10,000 became$26,688S&P 500 bought and held: $44,166

Over time

The P/E divided by the earnings-per-share growth delivered over three years. Under 0.75 the market pays little for the growth (long); over 3 it pays a lot (short).

EPS growth, 3 years (%) Price-to-earnings ratio (x) Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 26 quarters with a position, this lens beat the S&P 500 in 11, by −1.7% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	4	75.0%	+6.0%	+8.4%	+25.1%	1.59	Too few quarters
Shorts	22	36.4%	−3.1%	−2.6%	−12.2%	-2.65	Strong evidence: worse
All positions	26	42.3%	−1.7%	−0.6%	−7.3%	-1.31	No reliable evidence

Every quarter (45)

From	Price paid	Price-to-earnings ratio (x)	EPS growth, 3 years (%)	Position	SNPS	S&P 500
June 30, 2026	$446.07	77.3x	1.5%	Short	−2.5%	+2.4%
March 31, 2026	$396.48	56.1x	8.5%	Short	+12.5%	+15.1%
December 31, 2025	$469.72	38.0x	24.4%	No position	−15.6%	−4.4%
September 30, 2025	$493.39	35.6x	29.2%	No position	−4.8%	+2.7%
June 30, 2025	$512.68	38.0x	32.7%	No position	−3.8%	+8.1%
March 31, 2025	$428.85	29.7x	44.5%	Long	+19.6%	+10.8%
December 31, 2024	$485.36	50.6x	26.1%	No position	−11.6%	−4.3%
September 30, 2024	$506.39	55.3x	21.3%	No position	−4.2%	+2.5%
June 30, 2024	$595.06	65.7x	25.2%	No position	−14.9%	+5.8%
March 31, 2024	$571.50	72.5x	22.9%	Short	+4.1%	+4.4%
December 31, 2023	$514.91	77.2x	18.1%	Short	+11.0%	+10.4%
September 30, 2023	$458.97	77.1x	24.5%	Short	+12.2%	+11.6%
June 30, 2023	$435.41	71.7x	24.6%	No position	+5.4%	−3.2%
March 31, 2023	$386.25	61.5x	22.1%	No position	+12.7%	+8.7%
December 31, 2022	$319.29	48.2x	17.7%	No position	+21.0%	+7.5%
September 30, 2022	$305.51	47.3x	17.9%	No position	+4.5%	+7.6%
June 30, 2022	$303.70	52.5x	14.7%	Short	+0.6%	−4.9%
March 31, 2022	$333.27	69.6x	19.5%	Short	−8.9%	−16.1%
December 31, 2021	$368.50	76.7x	132.6%	Long	−9.6%	−4.6%
September 30, 2021	$299.41	58.2x	102.1%	Long	+23.1%	+11.1%
June 30, 2021	$275.79	60.0x	148.4%	Long	+8.6%	+0.6%
March 31, 2021	$247.78	58.9x	69.1%	No position	+11.3%	+8.4%
December 31, 2020	$259.24	64.4x	23.9%	No position	−4.4%	+6.3%
September 30, 2020	$213.98	69.6x	19.6%	Short	+21.1%	+12.1%
June 30, 2020	$195.00	62.4x	18.0%	Short	+9.7%	+9.0%
March 31, 2020	$128.79	37.6x	26.0%	No position	+51.4%	+20.2%
December 31, 2019	$139.20	34.4x	37.1%	No position	−7.5%	−19.4%
September 30, 2019	$137.25	34.9x	37.9%	No position	+1.4%	+9.0%
June 30, 2019	$128.69	33.3x	39.8%	No position	+6.7%	+1.8%
March 31, 2019	$115.15	42.2x	25.4%	No position	+11.8%	+4.2%
December 31, 2017	$85.24	40.0x	9.7%	Short	−2.4%	−1.0%
September 30, 2017	$80.53	45.0x	5.5%	Short	+5.8%	+6.8%
June 30, 2017	$72.93	38.4x	6.7%	Short	+10.4%	+4.4%
March 31, 2017	$72.13	42.0x	2.9%	Short	+1.1%	+3.1%
December 31, 2016	$58.86	37.1x	3.5%	Short	+22.6%	+5.9%
June 30, 2016	$54.08	38.0x	3.0%	Short	+9.7%	+3.8%
March 31, 2016	$48.44	34.1x	5.7%	Short	+11.6%	+2.5%
December 31, 2015	$45.61	30.3x	5.1%	Short	+6.2%	+1.3%
September 30, 2015	$46.18	29.2x	11.2%	No position	−1.2%	+7.0%
June 30, 2015	$50.65	31.0x	1.7%	Short	−8.8%	−6.4%
March 31, 2015	$46.32	28.5x	3.7%	Short	+9.3%	+0.2%
December 31, 2014	$43.47	27.0x	5.8%	Short	+6.6%	+0.9%
September 30, 2014	$39.70	26.0x	6.3%	Short	+9.5%	+4.9%
June 30, 2014	$38.82	24.8x	16.1%	No position	+2.3%	+1.1%
March 31, 2014	$38.41	24.5x	0.5%	Short	+1.1%	+5.2%

Price paid: the closing price that day as traded, before any later share split.

What profit margin is the price paying for?

The price implies an owner-earnings margin of 34.0%; the company has kept 14.8%.

Market more optimistic than our model: short this quarter

What the price implies What the company delivered

Quarters with a position4416 long, 28 short, since September 30, 2011

Beat the S&P 50021 of 4447.7% of quarters held

Strategy against the index−36.5%cumulative; worst fall -67.1%

$10,000 became$57,925S&P 500 bought and held: $87,527

Over time

The owner-earnings margin (free cash flow after stock pay, as a share of revenue) the price requires at our model's growth, against the margin the company has delivered over three years.

Margin delivered Margin the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 44 quarters with a position, this lens beat the S&P 500 in 21, by −0.6% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	16	56.3%	−0.1%	+0.0%	−0.7%	-0.06	No reliable evidence
Shorts	28	42.9%	−1.0%	−0.6%	−5.9%	-0.51	No reliable evidence
All positions	44	47.7%	−0.6%	−0.6%	−4.0%	-0.50	No reliable evidence

Every quarter (61)

From	Price paid	Margin the price implies	Margin delivered	Position	SNPS	S&P 500
September 30, 2026 (open)	$434.94	34.0%	14.8%	Short	+8.4%	−0.8%
June 30, 2026	$446.07	37.5%	15.8%	Short	−2.5%	+2.4%
March 31, 2026	$396.48	38.4%	12.7%	Short	+12.5%	+15.1%
December 31, 2025	$469.72	56.5%	11.8%	Short	−15.6%	−4.4%
September 30, 2025	$493.39	48.9%	10.9%	Short	−4.8%	+2.7%
June 30, 2025	$512.68	49.4%	14.2%	Short	−3.8%	+8.1%
March 31, 2025	$428.85	33.4%	16.2%	Short	+19.6%	+10.8%
December 31, 2024	$485.36	39.3%	15.7%	Short	−11.6%	−4.3%
September 30, 2024	$506.39	43.8%	16.7%	Short	−4.2%	+2.5%
June 30, 2024	$595.06	59.4%	18.2%	Short	−14.9%	+5.8%
March 31, 2024	$571.50	59.7%	21.4%	Short	+4.1%	+4.4%
December 31, 2023	$514.91	55.4%	21.8%	Short	+11.0%	+10.4%
September 30, 2023	$458.97	47.0%	21.9%	Short	+12.2%	+11.6%
June 30, 2023	$435.41	37.0%	20.9%	Short	+5.4%	−3.2%
March 31, 2023	$386.25	28.8%	21.5%	Short	+12.7%	+8.7%
December 31, 2022	$319.29	24.1%	21.3%	No position	+21.0%	+7.5%
September 30, 2022	$305.51	25.7%	22.0%	No position	+4.5%	+7.6%
June 30, 2022	$303.70	29.7%	19.9%	Short	+0.6%	−4.9%
March 31, 2022	$333.27	41.0%	18.7%	Short	−8.9%	−16.1%
December 31, 2021	$368.50	44.0%	17.7%	Short	−9.6%	−4.6%
September 30, 2021	$299.41	35.2%	17.4%	Short	+23.1%	+11.1%
June 30, 2021	$275.79	38.4%	13.8%	Short	+8.6%	+0.6%
March 31, 2021	$247.78	39.2%	12.3%	Short	+11.3%	+8.4%
December 31, 2020	$259.24	48.3%	13.1%	Short	−4.4%	+6.3%
September 30, 2020	$213.98	42.2%	12.8%	Short	+21.1%	+12.1%
June 30, 2020	$195.00	36.9%	10.8%	Short	+9.7%	+9.0%
March 31, 2020	$128.79	22.6%	12.1%	Short	+51.4%	+20.2%
December 31, 2019	$139.20	23.6%	12.4%	Short	−7.5%	−19.4%
September 30, 2019	$137.25	23.4%	11.9%	Short	+1.4%	+9.0%
June 30, 2019	$128.69	21.4%	11.1%	Short	+6.7%	+1.8%
March 31, 2019	$115.15	18.5%	13.1%	Short	+11.8%	+4.2%
December 31, 2018	$84.24	14.1%	14.0%	No position	+36.7%	+13.5%
September 30, 2018	$98.61	17.2%	14.3%	No position	−14.6%	−13.5%
June 30, 2018	$85.57	15.5%	16.0%	No position	+15.2%	+7.7%
March 31, 2018	$83.24	15.8%	16.3%	No position	+2.8%	+3.5%
December 31, 2017	$85.24	16.9%	16.3%	No position	−2.4%	−1.0%
September 30, 2017	$80.53	17.1%	17.5%	No position	+5.8%	+6.8%
June 30, 2017	$72.93	16.7%	17.8%	No position	+10.4%	+4.4%
March 31, 2017	$72.13	18.5%	16.6%	No position	+1.1%	+3.1%
December 31, 2016	$58.86	14.9%	17.7%	No position	+22.6%	+5.9%
September 30, 2016	$59.35	16.3%	18.4%	No position	−0.8%	+4.0%
June 30, 2016	$54.08	15.4%	17.4%	No position	+9.7%	+3.8%
March 31, 2016	$48.44	12.7%	16.9%	No position	+11.6%	+2.5%
December 31, 2015	$45.61	11.8%	16.5%	No position	+6.2%	+1.3%
September 30, 2015	$46.18	11.9%	17.4%	Long	−1.2%	+7.0%
June 30, 2015	$50.65	14.1%	17.6%	No position	−8.8%	−6.4%
March 31, 2015	$46.32	13.8%	19.0%	Long	+9.3%	+0.2%
December 31, 2014	$43.47	12.8%	18.4%	Long	+6.6%	+0.9%
September 30, 2014	$39.70	12.1%	18.5%	Long	+9.5%	+4.9%
June 30, 2014	$38.82	10.2%	18.9%	Long	+2.3%	+1.1%
March 31, 2014	$38.41	8.9%	20.1%	Long	+1.1%	+5.2%
December 31, 2013	$40.57	9.6%	18.9%	Long	−5.3%	+1.7%
September 30, 2013	$37.70	9.3%	18.5%	Long	+7.6%	+10.5%
June 30, 2013	$35.75	9.2%	18.3%	Long	+5.5%	+5.2%
March 31, 2013	$35.88	8.6%	19.9%	Long	−0.4%	+2.9%
December 31, 2012	$31.84	8.3%	19.8%	Long	+12.7%	+10.5%
September 30, 2012	$32.99	9.6%	19.4%	Long	−3.5%	−0.4%
June 30, 2012	$29.43	6.9%	19.1%	Long	+12.1%	+6.3%
March 31, 2012	$30.66	8.2%	18.9%	Long	−4.0%	−2.8%
December 31, 2011	$27.20	6.3%	18.3%	Long	+12.7%	+12.7%
September 30, 2011	$24.36	8.0%	17.0%	Long	+11.7%	+11.6%

Price paid: the closing price that day as traded, before any later share split.

What return on equity is the price paying for?

The price implies a return on equity of 18.9%; the company earned 3.8%.

Market more optimistic than our model: short this quarter

What the price implies What the company delivered

Quarters with a position560 long, 56 short, since September 30, 2011

Beat the S&P 50026 of 5646.4% of quarters held

Strategy against the index−68.8%cumulative; worst fall -85.6%

$10,000 became$30,221S&P 500 bought and held: $87,527

Over time

The return on equity that justifies the price-to-book ratio, (P/B)(r − g) + g with an 8.5% required return and 2.5% long-run growth, against the return the company delivered last year.

Return on equity delivered Return on equity the price implies Long quarter Short quarter. Lower panel: the share price at each quarter end, adjusted for later share splits and spin-offs (the table below gives the price as traded).

$10,000 trading the gap vs the S&P 500

Skill or luck?

In plain English: Across 56 quarters with a position, this lens beat the S&P 500 in 26, by −1.6% a quarter on average. That could easily be chance. One company is a small sample: the results across all companies are the better guide.

Positions	Quarters	Beat the S&P 500	Average vs S&P 500, a quarter	Typical (median), a quarter	A year	Confidence (t)	Evidence
Longs	0	—	—	—	—	—	—
Shorts	56	46.4%	−1.6%	−0.6%	−8.0%	-1.40	No reliable evidence
All positions	56	46.4%	−1.6%	−0.6%	−8.0%	-1.40	No reliable evidence

Every quarter (61)

From	Price paid	Return on equity the price implies	Return on equity delivered	Position	SNPS	S&P 500
September 30, 2026 (open)	$434.94	18.9%	3.8%	Short	+8.4%	−0.8%
June 30, 2026	$446.07	19.2%	5.5%	Short	−2.5%	+2.4%
March 31, 2026	$396.48	18.3%	7.1%	Short	+12.5%	+15.1%
December 31, 2025	$469.72	19.0%	11.3%	Short	−15.6%	−4.4%
September 30, 2025	$493.39	49.1%	25.4%	Short	−4.8%	+2.7%
June 30, 2025	$512.68	54.1%	26.4%	Short	−3.8%	+8.1%
March 31, 2025	$428.85	47.3%	29.9%	Short	+19.6%	+10.8%
December 31, 2024	$485.36	61.5%	21.9%	Short	−11.6%	−4.3%
September 30, 2024	$506.39	68.7%	22.0%	Short	−4.2%	+2.5%
June 30, 2024	$595.06	85.6%	22.9%	Short	−14.9%	+5.8%
March 31, 2024	$571.50	89.5%	21.1%	Short	+4.1%	+4.4%
December 31, 2023	$514.91	82.8%	17.9%	Short	+11.0%	+10.4%
September 30, 2023	$458.97	75.6%	16.2%	Short	+12.2%	+11.6%
June 30, 2023	$435.41	74.4%	17.1%	Short	+5.4%	−3.2%
March 31, 2023	$386.25	68.3%	18.2%	Short	+12.7%	+8.7%
December 31, 2022	$319.29	55.8%	19.2%	Short	+21.0%	+7.5%
September 30, 2022	$305.51	54.0%	18.9%	Short	+4.5%	+7.6%
June 30, 2022	$303.70	55.7%	17.7%	Short	+0.6%	−4.9%
March 31, 2022	$333.27	62.2%	14.8%	Short	−8.9%	−16.1%
December 31, 2021	$368.50	69.8%	15.5%	Short	−9.6%	−4.6%
September 30, 2021	$299.41	58.0%	17.3%	Short	+23.1%	+11.1%
June 30, 2021	$275.79	55.8%	16.0%	Short	+8.6%	+0.6%
March 31, 2021	$247.78	50.4%	14.8%	Short	+11.3%	+8.4%
December 31, 2020	$259.24	55.3%	14.7%	Short	−4.4%	+6.3%
September 30, 2020	$213.98	48.9%	11.6%	Short	+21.1%	+12.1%
June 30, 2020	$195.00	46.1%	12.2%	Short	+9.7%	+9.0%
March 31, 2020	$128.79	31.9%	14.1%	Short	+51.4%	+20.2%
December 31, 2019	$139.20	35.3%	17.6%	Short	−7.5%	−19.4%
September 30, 2019	$137.25	34.9%	16.9%	Short	+1.4%	+9.0%
June 30, 2019	$128.69	33.7%	17.1%	Short	+6.7%	+1.8%
March 31, 2019	$115.15	34.0%	12.8%	Short	+11.8%	+4.2%
December 31, 2018	$84.24	26.9%	1.8%	Short	+36.7%	+13.5%
September 30, 2018	$98.61	30.3%	2.9%	Short	−14.6%	−13.5%
June 30, 2018	$85.57	27.0%	1.4%	Short	+15.2%	+7.7%
March 31, 2018	$83.24	26.2%	4.2%	Short	+2.8%	+3.5%
December 31, 2017	$85.24	25.6%	10.1%	Short	−2.4%	−1.0%
September 30, 2017	$80.53	24.6%	8.5%	Short	+5.8%	+6.8%
June 30, 2017	$72.93	22.8%	9.3%	Short	+10.4%	+4.4%
March 31, 2017	$72.13	23.5%	8.4%	Short	+1.1%	+3.1%
December 31, 2016	$58.86	19.9%	7.8%	Short	+22.6%	+5.9%
September 30, 2016	$59.35	20.0%	7.5%	Short	−0.8%	+4.0%
June 30, 2016	$54.08	19.4%	7.5%	Short	+9.7%	+3.8%
March 31, 2016	$48.44	17.2%	7.3%	Short	+11.6%	+2.5%
December 31, 2015	$45.61	16.3%	7.8%	Short	+6.2%	+1.3%
September 30, 2015	$46.18	16.7%	8.3%	Short	−1.2%	+7.0%
June 30, 2015	$50.65	18.8%	8.9%	Short	−8.8%	−6.4%
March 31, 2015	$46.32	17.0%	8.9%	Short	+9.3%	+0.2%
December 31, 2014	$43.47	16.2%	8.8%	Short	+6.6%	+0.9%
September 30, 2014	$39.70	15.3%	8.6%	Short	+9.5%	+4.9%
June 30, 2014	$38.82	15.4%	9.1%	Short	+2.3%	+1.1%
March 31, 2014	$38.41	15.6%	9.4%	Short	+1.1%	+5.2%
December 31, 2013	$40.57	16.5%	8.6%	Short	−5.3%	+1.7%
September 30, 2013	$37.70	15.6%	9.7%	Short	+7.6%	+10.5%
June 30, 2013	$35.75	15.2%	8.2%	Short	+5.5%	+5.2%
March 31, 2013	$35.88	15.8%	7.9%	Short	−0.4%	+2.9%
December 31, 2012	$31.84	14.5%	8.6%	Short	+12.7%	+10.5%
September 30, 2012	$32.99	15.4%	7.7%	Short	−3.5%	−0.4%
June 30, 2012	$29.43	14.5%	10.6%	No position	+12.1%	+6.3%
March 31, 2012	$30.66	15.4%	10.5%	No position	−4.0%	−2.8%
December 31, 2011	$27.20	13.9%	9.9%	No position	+12.7%	+12.7%
September 30, 2011	$24.36	12.9%	9.0%	No position	+11.7%	+11.6%

Price paid: the closing price that day as traded, before any later share split.

How the test works

At each quarter end since March 2010 we rebuild the models from Synopsys Inc's quarters ending at least 90 days earlier (and no more than 200 days before that), using the figures as later filed, including any restatement, and value them at that day's close, adjusted for later share splits and spin-offs so that price and share count are on the same basis. A wide enough gap is a long or a short for one quarter (growth 10 points; margin and return on equity 5 points; a PEG under 0.75 or over 3), measured on total return against the S&P 500. The rules were set before the test. No trading or borrowing costs; today's list of companies. Not investment advice. All companies and the results across them.

Compare with peers

Head to head: SNPS vs WDAY ADSK vs SNPS PLTR vs SNPS

More: Application Software stocks compared, Technology sector, rankings of US companies

Figures from Synopsys Inc's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Synopsys Inc.