Synopsys Inc
NASDAQ:SNPS

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Synopsys Inc
NASDAQ:SNPS
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Price: 443.97 USD -0.59% Market Closed
Market Cap: 68.6B USD

Gross Margin
Synopsys Inc

79.6%
Current
80%
Average
46.8%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
79.6%
=
Gross Profit
4.8B
/
Revenue
6.1B

Gross Margin Across Competitors

Country Company Market Cap Gross
Margin
US
Synopsys Inc
NASDAQ:SNPS
68.6B USD
80%
US
Ezenia! Inc
OTC:EZEN
567B USD
62%
DE
SAP SE
XETRA:SAP
296.1B EUR
74%
US
Palantir Technologies Inc
NYSE:PLTR
261.2B USD
80%
US
Salesforce Inc
NYSE:CRM
254.2B USD
77%
US
Intuit Inc
NASDAQ:INTU
172.9B USD
79%
US
Adobe Inc
NASDAQ:ADBE
162.3B USD
89%
US
NCR Corp
LSE:0K45
111.8B USD
20%
US
Applovin Corp
NASDAQ:APP
96.9B USD
75%
US
Microstrategy Inc
NASDAQ:MSTR
90.8B USD
72%
US
Cadence Design Systems Inc
NASDAQ:CDNS
78.3B USD
86%

Synopsys Inc
Glance View

Economic Moat
Narrow
Market Cap
68.6B USD
Industry
Technology

In the tightly-knit world of semiconductor design, Synopsys Inc. stands as a titan, quietly powering the intricate process behind the chips that drive today’s technology. Founded in 1986, the California-based company has carved out a critical niche by providing Electronic Design Automation (EDA) tools, which are indispensable for chip manufacturers aiming for efficiency and precision. Think of their software as the sculptor's chisel, indispensable for crafting the silicon gardens that populate everything from smartphones to servers. Synopsys’s offerings include tools for design verification, which ensure that chips function as intended without costly rework, and for design for manufacturing, confirming designs can be reliably produced at a high yield. This software automates and streamlines complex design processes, enabling companies to reduce time-to-market and development costs—a crucial competitive edge in an industry characterized by rapid change. Synopsys thrives on a business model primarily driven by software licenses and subscriptions. Its clients, a mélange of semiconductor giants and fledgling design firms, pay for access to Synopsys’s tools, with arrangements typically spanning multiple years. Over time, this model has evolved to incorporate software-as-a-service (SaaS) elements, allowing the company to capture recurring revenue streams. Additionally, with the semiconductor landscape expanding to new horizons—augmented reality, AI, and beyond—Synopsys has diversified its portfolio to encompass IP licensing. This offering provides pre-designed and verified circuit components that clients can plug directly into their chip designs, further enhancing design speed and efficiency. In essence, Synopsys operates at the core of technological innovation, equipping engineers with the sophisticated tools and templates necessary to create the future of computing.

SNPS Intrinsic Value
387.4 USD
Overvaluation 13%
Intrinsic Value
Price
What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
79.6%
=
Gross Profit
4.8B
/
Revenue
6.1B
What is the Gross Margin of Synopsys Inc?

Based on Synopsys Inc's most recent financial statements, the company has Gross Margin of 79.6%.

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