Synopsys (MEX:SNPS) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:SNPS Synopsys Inc MEX:SNPS
88 GF Score
Price MXN7,700.00
GF Value MXN11,936.36
Valuation Possible Value Trap
! 7 Warning Signs
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What is Synopsys Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Synopsys is: High Risk: Good fundamentals, beware of shrinking business.

Synopsys  (MEX:SNPS) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Synopsys Risk Assessment Related Terms

MEX:SNPS vs NET, FTNT, CRWV: Risk Assessment Comparison

For the Software - Infrastructure subindustry, Synopsys's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Software Industry

For the Software industry and Technology sector, Synopsys's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Synopsys's Risk Assessment falls into.


MEX:SNPS
88GF Score
Synopsys Inc MEX:SNPS
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Synopsys (MEX:SNPS) Overvalued in 2026?

Based on GuruFocus' analysis, Synopsys stock appears to be undervalued. The current stock price of MXN7,700.00 is trading 35.5% below its estimated GF Value™ of MXN11,936.36. GuruFocus considers Synopsys to be Possible Value Trap.

Key valuation signals for MEX:SNPS:

  • Risk Assessment:
  • GF Value™: MXN11,936.36 vs. price of MXN7,700.00 (35.5% below fair value)
  • GF Score™: 88/100 with 7 warning signs

No single metric tells the full story. See the MEX:SNPS 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.
88GF Score

Get the complete analysis for MEX:SNPS

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

MXN7,700.00
Price
MXN11,936.36
GF Value