Synopsys, Inc. SNPS

Synopsys is a high‑quality, oligopoly player with sticky, mission‑critical software, a broadened simulation portfolio, and a long runway from AI and multi‑die design. Five‑year ROIIC near 16% and capex‑light economics support compounding, but near‑term returns are diluted by the Ansys financing and an IP transition, with execution and regulatory timing the key swing factors (Key compounder indicators; Balance sheet analysis; Earnings call analysis). On valuation, a scenario DCF ranges from ~$103 to ~$682 per share, with a base case around ~$339 versus a current price near ~$439, implying the market already discounts meaningful synergy capture and FCF growth (Valuation; Company profile). Setting aside price, the business quality is strong and should prove durable if management delivers on integration, deleveraging, and IP repositioning.