Synopsys Inc
SNPSAbove valueExpectations · demandingHeld by 6 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-10-31Valuation basis: trailing twelve months to 2026-04-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +15.1%
- Net margin
- 18.9%
- ROE
- 4.7%
- FCF margin
- 19.1%
Valuation · value band
Above fair value
Zero-growth floor
$85
Central IV
$18
Optimistic top
$85
Synopsys Inc (SNPS): A conservative value band $85 / sh (zero-growth floor to growth-capped optimistic top); central read about $18. Today’s price sits above that band (price $410 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 0% (lower of historical trend and fundamental cap, capped by moat) · moat 0 yr · discount 14.6% · Zero-growth downside $85
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Buybacks over the years shown roughly only offset stock-based-compensation dilution — read them as maintaining the share count, not a net return of capital.
Model cautions
- Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $16.13 – $20.04 · Greenwald zero-growth $84.65 · zero-growth base $84.65 · reproduction $84.65
Moat Below asset base · terminal value 27% of present value · owner-earnings yield 1% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$20.25 – $33.57 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-04-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 181% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value$17.04 – $19.66 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 13.0–15.0% band (9–11% base + 4.0pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-04-30, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 181% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 4.0pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 15.5 years of owner earnings, adding 4.0pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $-8.25B + capitalized R&D $5.15B（FY 2026, 2024, 2023, 2022） = $84.65 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Growth value gated to zero — no moat or ROIIC ≤ WACC, so no growth value is credited.
Window TTM 2026-04-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 7% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 15.5 years of owner earnings → +4.0pp cost-of-equity premium → effective 13.0%–15.0%.
Owner-earnings DCF: growth g₁ 0% · OE FY TTM 2026-04-30, 2024, 2023, 2022, 2021 · Discount band: 13.16%–16.00% (DGS10 +4.5% to a 12% strict end, each +4.00pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-04-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about over 30.0% (outside the usual range) a year in owner-earnings for the next few years. Revenue actually grew 13.8% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
6 holders · $485.4M combined · this quarter +0 opened / -0 exited
- Value$429.0MWeight (prev→now)0.9% → 1.0% ▲
- Value$18.4MWeight (prev→now)1.8% → 0.2% ▼
- Value$17.9MWeight (prev→now)0.4% → 0.1% ▼
- Value$11.1MWeight (prev→now)0.0% → 0.0% ▲
- Value$4.5MWeight (prev→now)0.0% → 0.0% ▲
- Value$4.5MWeight (prev→now)0.0% → 0.0% ▲
SEC 13F · notes
Written summary
Written summary
Synopsys Inc (SNPS) is held by 6 of the superinvestors tracked on Compounder, with a combined $485.4M in reported 13F value. The largest position belongs to Jeremy Grantham, where it makes up 1.0% of the portfolio.
Other notable holders by value include Polen Capital (0.2% of its book), Ray Dalio (0.1% of its book) and Christopher Davis (0.0% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in SNPS, 1 added to existing ones, 4 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Synopsys Inc (SNPS) also commonly hold →
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- Alphabet Inc-Cl AGOOGL5 holders
SNPS's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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