Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Synopsys, Inc. has a fair value of $361.41 based on NTM EPS (FY2026) of $14.46. The current PEG ratio is 0.78.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 36.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $14.46 |
| Fair Value | $361.41 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.04 | — | — |
| FY2026E | $14.46 | +79.8% | 19 |
| FY2027E | $17.06 | +18.0% | 18 |
| FY2028E | $20.25 | +18.7% | 13 |
3Y Forward EPS CAGR: 36.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $757.5M | $4.81 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $984.6M | $6.29 | +30.8% |
| FY2023 | $1.2B | $7.92 | +25.9% |
| FY2024 | $2.3B | $14.51 | +83.2% |
| FY2025 | $1.3B | $8.04 | -44.6% |
4Y Historical EPS CAGR: 13.7%