Synopsys (WBO:SYNP) Beneish M-Score: -1.33 (As of Jun. 25, 2026)


WBO:SYNP Synopsys Inc WBO:SYNP
87 GF Score
Price €416.00
GF Value €587.82
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Synopsys Beneish M-Score?

Synopsys WBO:SYNP +0.60% 87 Beneish M-Score is -1.33 as of Jun. 25, 2026. GuruFocus rates WBO:SYNP with a GF Score™ of 87/100 and a GF Value™ of €587.82 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,633 Software companies, Synopsys ranks worse than 86.67% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.33 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Synopsys's Beneish M-Score or its related term are showing as below:

WBO:SYNP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08   Med: -2.54   Max: -1.33
Current: -1.33

During the past 13 years, the highest Beneish M-Score of Synopsys was -1.33. The lowest was -3.08. And the median was -2.54.


Synopsys Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Synopsys's Beneish M-Score 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.

Synopsys Beneish M-Score Chart

Synopsys Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.08 -2.52 -2.59 -2.16 -1.85

Synopsys Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.66 -1.63 -1.85 -1.79 -1.33

WBO:SYNP vs NET, FTNT, CRWV: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Synopsys's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Synopsys's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Synopsys's Beneish M-Score falls into.


WBO:SYNP
87GF Score
Synopsys Inc WBO:SYNP
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Synopsys Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Synopsys for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9396+0.528 * 1.087+0.404 * 3.5467+0.892 * 1.2928+0.115 * 0.3792
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0872+4.679 * -0.052025-0.327 * 0.5632
=-1.39

* 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.

This Year (Apr26) TTM:Last Year (Apr25) TTM:
Total Receivables was €1,084 Mil.
Revenue was 1945.967 + 2049.887 + 1936.925 + 1490.955 = €7,424 Mil.
Gross Profit was 1407.445 + 1507.475 + 1374.569 + 1164.811 = €5,454 Mil.
Total Current Assets was €4,649 Mil.
Total Assets was €40,090 Mil.
Property, Plant and Equipment(Net PPE) was €1,207 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,258 Mil.
Selling, General, & Admin. Expense(SGA) was €1,924 Mil.
Total Current Liabilities was €3,241 Mil.
Long-Term Debt & Capital Lease Obligation was €9,135 Mil.
Net Income was 14.625 + 55.279 + 385.43 + 207.83 = €663 Mil.
Non Operating Income was -82.563 + -82.541 + 488.965 + 33.531 = €357 Mil.
Cash Flow from Operations was 537.739 + 729.164 + 549.535 + 575.013 = €2,391 Mil.
Total Receivables was €892 Mil.
Revenue was 1427.797 + 1405.834 + 1501.835 + 1406.741 = €5,742 Mil.
Gross Profit was 1144.468 + 1145.038 + 1157.564 + 1138.737 = €4,586 Mil.
Total Current Assets was €15,022 Mil.
Total Assets was €21,143 Mil.
Property, Plant and Equipment(Net PPE) was €1,030 Mil.
Depreciation, Depletion and Amortization(DDA) was €247 Mil.
Selling, General, & Admin. Expense(SGA) was €1,369 Mil.
Total Current Liabilities was €2,141 Mil.
Long-Term Debt & Capital Lease Obligation was €9,447 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1083.546 / 7423.734) / (891.954 / 5742.207)
=0.145957 / 0.155333
=0.9396

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(4585.807 / 5742.207) / (5454.3 / 7423.734)
=0.798614 / 0.734711
=1.087

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4648.821 + 1207.137) / 40090.118) / (1 - (15022.336 + 1030.341) / 21143.3)
=0.85393 / 0.240768
=3.5467

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7423.734 / 5742.207
=1.2928

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(247.196 / (247.196 + 1030.341)) / (1257.73 / (1257.73 + 1207.137))
=0.193494 / 0.510263
=0.3792

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1924.441 / 7423.734) / (1369.214 / 5742.207)
=0.259228 / 0.238447
=1.0872

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((9135.094 + 3240.99) / 40090.118) / ((9447.456 + 2141.408) / 21143.3)
=0.308707 / 0.54811
=0.5632

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(663.164 - 357.392 - 2391.451) / 40090.118
=-0.052025

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Synopsys has a M-score of -1.39 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.33 mean?
Synopsys (WBO:SYNP) has a Beneish M-Score of -1.33 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Synopsys and its competitors. According to the industry distribution chart, Synopsys ranks #2282 out of 2633 companies in the Software industry, placing it in the top 86.7%.
Is Synopsys' Beneish M-Score too high?
Synopsys' current Beneish M-Score is -1.33. Based on the distribution chart, Synopsys ranks #2282 out of 2633 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Synopsys' Beneish M-Score compare to NET and FTNT?
According to the Software industry distribution chart, Synopsys ranks #2282 out of 2633 companies for Beneish M-Score. This places Synopsys in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Software company?
A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Synopsys and its competitors. Synopsys's current Beneish M-Score is -1.33. 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 (WBO:SYNP) is currently considered Modestly Undervalued. The stock's GF Value™ is €587.82, compared to a current price of €416.00 — trading 29.2% below its estimated fair value. The current Beneish M-Score is -1.33. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Synopsys (WBO:SYNP), the current Beneish M-Score is -1.33 as of Jun. 25, 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 (WBO:SYNP) Overvalued in 2026?

Based on GuruFocus' analysis, Synopsys stock appears to be undervalued. The current stock price of €416.00 is trading 29.2% below its estimated GF Value™ of €587.82. GuruFocus considers Synopsys to be Modestly Undervalued.

Key valuation signals for WBO:SYNP:

  • Beneish M-Score: -1.33
  • GF Value™: €587.82 vs. price of €416.00 (29.2% below fair value)
  • GF Score™: 87/100 with 7 warning signs

No single metric tells the full story. See the WBO:SYNP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Synopsys Business Description

Address 675 Almanor Avenue, Sunnyvale, CA, USA, 94085
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

Get the complete analysis for WBO:SYNP

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€416.00
Price
€587.82
GF Value