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Synopsys GF Value Rank

: 3 (As of Today)
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Synopsys has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Software - Infrastructure subindustry, Synopsys's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Software industry and Technology sector, Synopsys's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Synopsys's GF Value Rank falls into.



Synopsys GF Value Rank Related Terms

Thank you for viewing the detailed overview of Synopsys's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Synopsys Business Description

Synopsys logo
Address
690 East Middlefield Road, Mountain View, CA, USA, 94043
Synopsys is a provider of electronic design automation (EDA) software, intellectual property (IP), and software integrity (SI) products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys' comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack 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.
Executives
Casper Marc N director C/O THERMO FISHER SCIENTIFIC 168 THIRD AVENUE WALTHAM MA 02451
Borgen Luis director 58 SUNSET RIDGE LANE BOLTON MA 01740
Sargent Jeannine P director C/O VEECO INSTRUMENTS INC. 100 SUNNYSIDE BOULEVARD SUITE B WOODBURY NY 11797
Ghazi Sassine officer: Chief Operating Officer 3075 W RAY ROAD, SUITE 528 THE PARK AT SAN TAN CHANDLER AZ 85226
Johnson Mercedes director MICRON TECHNOLOGY, INC 8000 S FEDERAL WAY, MS 1-557 BOISE ID 83716
Kankanwadi Sudhindra officer: VP and Corporate Controller 690 E MIDDLEFIELD ROAD MOUNTAIN VIEW CA 94043
Vallee Roy director 2211 S 47TH ST PHOENIX AZ 85034
Schwarz John director 20330 STEVENS CREEK BLVD. CUPERTINO CA 95014
Nikias Chrysostomos L director UNIVERSITY OF SOUTHERN CALIFORNIA 3551 TROUSEDALE, BOVARD ADM 102 LOS ANGELES CA 90089-4019
Walske Steven director C/O PARAMETRIC TECHNOLOGY CORP 128 TECHNOLOGY DR WALTHAM MA 02154
Logan Joseph W officer: EVP, Sales & Corp Marketing 700 EAST MIDDLEFIELD ROAD MOUNTAIN VIEW CA 94043
Coleman Deborah A director 1414 SW 3RD AVENUE #2701 FTN PLAZA PORTLAND OR 97201-6627
De Geus Aart director, officer: Chairman of the Board & Co-CEO
Beattie Brian M officer: EVP, Business Ops. & CAO 875 MAHLER RD STE 280 BURLINGAME CA 94010
Chan Chi-foon director, officer: Co-CEO & President

Synopsys Headlines

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