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SynopsysSNPS +2.80%87 EV-to-EBITDA is 28.45 as of Jul. 22, 2026, which is 25% below its 10-year median of 38.01. GuruFocus rates SNPS with a GF Score™ of 87/100 and a GF Value™ of $661.86 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,959 Software companies, Synopsys ranks worse than 79.58% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Synopsys's enterprise value is $82,855 Mil.
Synopsys's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 was $2,912 Mil. Therefore, Synopsys's EV-to-EBITDA for today is 28.45.
The historical rank and industry rank for Synopsys's EV-to-EBITDA or its related term are showing as below:
SNPS'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 14.69 Med: 38.01 Max: 62.82
Current: 28.45
During the past 13 years, the highest EV-to-EBITDA of Synopsys was 62.82. The lowest was 14.69. And the median was 38.01.
SNPS's EV-to-EBITDA is ranked worse than 79.58% of 1959
companies
in the Software industry
Industry Median: 10.46
vs SNPS: 28.45
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Synopsys (NAS:SNPS) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Synopsys's share price for today is $389.07.
Synopsys's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.320.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Synopsys's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Synopsys's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Synopsys's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Synopsys's EV-to-EBITDA falls into.
Synopsys's current Enterprise Value is $82,855 Mil.
Synopsys's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,912 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Synopsys (SNPS) has a EV-to-EBITDA of 28.45 as of Jul. 22, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Synopsys. This is 25% below median its historical median of 38.01. Over the past decade, Synopsys' EV-to-EBITDA has ranged from 14.69 to 62.82. According to the industry distribution chart, Synopsys ranks #1559 out of 1959 companies in the Software industry, placing it in the top 79.6%.
Is Synopsys' EV-to-EBITDA too high?
Synopsys' current EV-to-EBITDA of 28.45 is 25% below median its 10-year median of 38.01. Over the past 10 years, this metric has ranged from a low of 14.69 to a high of 62.82. The Software industry median EV-to-EBITDA is 10.46. Synopsys' value of 28.45 is 172% above this industry median. Based on the distribution chart, Synopsys ranks #1559 out of 1959 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Synopsys has a GF Score™ of 87/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Synopsys' EV-to-EBITDA compare to NET and FTNT?
According to the Software industry distribution chart, Synopsys ranks #1559 out of 1959 companies for EV-to-EBITDA. This places Synopsys in the lower half of its industry. The industry median EV-to-EBITDA is 10.46. Synopsys' value of 28.45 is 172% above this benchmark. Historically, Synopsys' own EV-to-EBITDA has ranged from 14.69 to 62.82 over the past decade. While the company's 10-year median is 38.01 vs. the industry median of 10.46, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.46, based on 1,959 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Synopsys's current EV-to-EBITDA of 28.45 is 172% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Synopsys. For the Software industry, the median EV-to-EBITDA is 10.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synopsys's current EV-to-EBITDA is 28.45, which is 25% below median its own 10-year median of 38.01. 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 $661.86, compared to a current price of $389.07 — trading 41.2% below its estimated fair value. The current EV-to-EBITDA is 28.45, which is 25% below median its 10-year median of 38.01 and 172% above the Software industry median of 10.46. Synopsys' overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Synopsys (SNPS), the current EV-to-EBITDA is 28.45 as of Jul. 22, 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 $389.07 is trading 41.2% below its estimated GF Value™ of $661.86.
GuruFocus considers Synopsys to be Possible Value Trap.
Key valuation signals for SNPS:
EV-to-EBITDA: 28.45 (25% below median its 10-year median of 38.01)
GF Value™: $661.86 vs. price of $389.07 (41.2% below fair value)
Industry Position: 172% above the Software median (#1559 of 1959)
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.
87GF Score
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