COMPILED BY GEMINI 3.1

Synopsys (SNPS) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$8.00 per share
Current Price $428.67
Margin of Safety -98.1%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
9.2%

"> Derived mathematically from the 4-year historical Free Cash Flow compound annual growth rate (CAGR), bounded to a maximum of 18% to ensure we do not linearly project temporary massive windfalls indefinitely.

Discount Rate (WACC)
10.6%

"> Calculated using CAPM: Risk-Free Rate of 4.18% (10Y Treasury), plus Synopsys's Beta (1.16) multiplied by an assumed 5.5% Equity Risk Premium.

Terminal Growth Rate
3.2%

"> Calculated as the 10Y Treasury rate minus 1%, capping long-term perpetual growth below macroeconomic nominal rates.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 2.2%2.7%3.2%3.7%4.2%
2.2% $9.25 $8.00 $7.05 $6.30 $5.69
2.7% $10.03 $8.58 $7.49 $6.65 $5.98
3.2% $10.96 $9.25 $8.00 $7.05 $6.30
3.7% $12.08 $10.03 $8.58 $7.49 $6.65
4.2% $13.45 $10.96 $9.25 $8.00 $7.05

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why use a mathematically derived Discount Rate instead of a flat 10%?

Westmount Research. "Synopsys (SNPS) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, 2026-03-24.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.