Synopsys, Inc. (SNPS) — Free Cash Flow Yield
Technology
Synopsys, Inc. provides design IP solutions in the semiconductor and electronics industries. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides pre-verified and silicon-proven IP solutions, logic libraries and embedded memories, processor and security solutions, IP Offerings for the automotive market, SOC infrastructure IP, data path and building block IP, and mathematical and floating-point components. Synopsys, Inc. has a strategic collaboration with Arm Holdings plc for development of AGI CPU that provides solutions across its full-stack design portfolio including EDA, interface IP, and hardware-assisted verification (HAV). The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
| Metric | Value |
|---|---|
| FCF Yield | 1.7% |
| Technology Sector Avg FCF Yield | 4.0% |
| Annual Free Cash Flow | $1.3B |
| Market Cap | $80.7B |
| P/E Ratio | 96.2x |
Synopsys, Inc.'s FCF yield of 1.7% is below the Technology sector average (4.0%).
Frequently Asked Questions
What is Synopsys, Inc.'s (SNPS) free cash flow yield?
Synopsys, Inc.'s (SNPS) free cash flow yield is 1.7%. That is below the Technology sector average (4.0%).
Is SNPS's free cash flow yield good?
At 1.7%, SNPS's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Synopsys, Inc. generate?
Synopsys, Inc. generated $1.3B in free cash flow, against a market cap of $80.7B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →