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Is this Large Market Cap Stock target price reasonable for Synopsys Inc. (NASDAQ:SNPS)?

The company in question is, Synopsys Inc. (NASDAQ:SNPS) currently with a stock price of 59.95 (0.79% today). The market cap for Synopsys Inc. is 9087.95, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for Synopsys Inc. is 61.09. Currently Synopsys Inc. is trading with a P/E of 37.89, and a forward P/E of 18.29. Average volume for Synopsys Inc. is 797.45 and so far today it is 448530.

Performance in the last year for Synopsys Inc. has been 25.06%. For EPS growth, Synopsys Inc. has seen a growth of -13.00%, and is looking to grow in the next year to 7.75%. More long term stats show that EPS growth has been -1.70% over the last five years and could be 9.05% for the next five years. Synopsys Inc. has seen sales growth quarter over quarter at 10.70%, with EPS growth quarter over quarter at 20.40%. The 20-day simple moving average is 2.66%, with the 200-day simple moving average coming to 17.98%.

Since the IPO date for Synopsys Inc. on the 2/26/1992, Synopsys Inc. has seen performance year to date to be 30.41%. With Synopsys Inc. trading at 59.95, the dividend yield is *TBA, and the EPS is 1.57.

So could Synopsys Inc., be undervalued? Well as said before P/E is 37.89. The PEG is 4.19, P/S is 3.82 and the P/B is at 2.88. The P/cash is 8.34, with P/free cash flow at 36.84.

Synopsys Inc. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.9. This is with long term debt/equity at 0, and total debt/equity at 0.09.

In terms of margins, Synopsys Inc. has a gross margin of 77.20%, an operating margin of 12.30% and a profit margin of 10.30%.Payout ratio for Synopsys Inc. is 0.00%. Return on assets come to 4.90% with return on investment coming to 6.30%.

Insider ownership for Synopsys Inc., is at 0.20% and institutional ownership comes to 93.10%. Outstanding shares are at 152.79. While shares float is 150.06. The float short is currently 1.84%, and short ratio is 3.46.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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