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SynopsysSNPS +3.01%89 3-Year EBITDA Growth Rate is 21.00% as of Apr. 2026, which is 56% above its 10-year median of 13.50. GuruFocus rates SNPS with a GF Score™ of 89/100 and a GF Value™ of $664.92 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,073 Software companies, Synopsys ranks better than 64.01% on this metric.
During the past 12 months, Synopsys's average EBITDA Per Share Growth Rate was 36.40% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 21.00% per year.
During the past 5 years, the average EBITDA Per Share Growth Rate was 22.30% per year.
During the past 10 years, the average EBITDA Per Share Growth Rate was 17.30% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Synopsys was 69.40% per year. The lowest was -31.90% per year. And the median was 13.50% per year.
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
Synopsys 3-Year EBITDA Growth Rate Related Terms
SNPS vs NET, XYZ, CRWV: 3-Year EBITDA Growth Rate Comparison
For the Software - Infrastructure subindustry, Synopsys's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Synopsys 3-Year EBITDA Growth Rate vs Software Industry
For the Software industry and Technology sector, Synopsys's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Synopsys's 3-Year EBITDA Growth Rate falls into.
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 21.00% mean?
Synopsys (SNPS) has a 3-Year EBITDA Growth Rate of 21.00% as of Apr. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Synopsys and its competitors. This is 56% above median its historical median of 13.50. According to the industry distribution chart, Synopsys ranks #746 out of 2073 companies in the Software industry, placing it in the top 36%.
Is Synopsys' 3-Year EBITDA Growth Rate too high?
Synopsys' current 3-Year EBITDA Growth Rate of 21.00% is 56% above median its 10-year median of 13.50. The Software industry median 3-Year EBITDA Growth Rate is 12.20. Synopsys' value of 21.00% is 72.1% above this industry median. Based on the distribution chart, Synopsys ranks #746 out of 2073 companies in the Software industry, which is above the industry midpoint. Overall, Synopsys has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Synopsys' 3-Year EBITDA Growth Rate compare to NET and XYZ?
According to the Software industry distribution chart, Synopsys ranks #746 out of 2073 companies for 3-Year EBITDA Growth Rate. This puts Synopsys in the upper half of its industry. The industry median 3-Year EBITDA Growth Rate is 12.20. Synopsys' value of 21.00% is 72.1% above this benchmark. While the company's 10-year median is 13.50 vs. the industry median of 12.20, Synopsys has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year EBITDA Growth Rate for a Software company?
The median 3-Year EBITDA Growth Rate among Software companies is 12.20, based on 2,073 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Synopsys's current 3-Year EBITDA Growth Rate of 21.00% is 72.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Synopsys and its competitors. For the Software industry, the median 3-Year EBITDA Growth Rate is 12.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synopsys's current 3-Year EBITDA Growth Rate is 21.00%, which is 56% above median its own 10-year median of 13.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synopsys stock overvalued right now?
Based on GuruFocus' analysis, Synopsys (SNPS) is currently considered Possible Value Trap. The stock's GF Value™ is $664.92, compared to a current price of $403.86 — trading 39.3% below its estimated fair value. The current 3-Year EBITDA Growth Rate is 21.00%, which is 56% above median its 10-year median of 13.50 and 72.1% above the Software industry median of 12.20. Synopsys' overall GF Score™ is 89/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Synopsys (SNPS), the current 3-Year EBITDA Growth Rate is 21.00% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Synopsys (SNPS) Overvalued in 2026?
Based on GuruFocus' analysis, Synopsys stock appears to be undervalued.
The current stock price of $403.86 is trading 39.3% below its estimated GF Value™ of $664.92.
GuruFocus considers Synopsys to be Possible Value Trap.
Key valuation signals for SNPS:
3-Year EBITDA Growth Rate: 21.00% (56% above median its 10-year median of 13.50)
GF Value™: $664.92 vs. price of $403.86 (39.3% below fair value)
Industry Position: 72.1% above the Software median (#746 of 2073)
No single metric tells the full story. See the SNPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.
89GF Score
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