Can Synopsys Stock Recover If Markets Fall?
Synopsys (SNPS) stock is down 17.0% in 21 trading days. The recent slide reflects renewed concerns around its IP business transition and China market headwinds, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Synopsys stands today.
- Size: Synopsys is a $79 Bil company with $7.1 Bil in revenue currently trading at $421.95.
- Fundamentals: Last 12 month revenue growth of 15.1% and operating margin of 13.0%.
- Liquidity: Has Debt to Equity ratio of 0.18 and Cash to Assets ratio of 0.06
- Valuation: Synopsys stock is currently trading at P/E multiple of 59.0 and P/EBIT multiple of 42.7
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 12.7% within a year
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell SNPS Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SNPS stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SNPS stock falls another 20-30% to $295 – can investors comfortably hold on? Turns out, the stock has been more resilient than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- SNPS stock fell 30.6% from a high of $375.59 on 27 December 2021 to $260.83 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 August 2022
- Since then, the stock increased to a high of $645.35 on 30 July 2025 , and currently trades at $421.95
| SNPS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.6% | -25.4% |
| Time to Full Recovery | 91 days | 464 days |
2020 Covid Pandemic
- SNPS stock fell 34.3% from a high of $164.99 on 19 February 2020 to $108.48 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2020
| SNPS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.3% | -33.9% |
| Time to Full Recovery | 58 days | 148 days |
2018 Correction
- SNPS stock fell 22.9% from a high of $102.81 on 13 September 2018 to $79.24 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 February 2019
| SNPS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.9% | -19.8% |
| Time to Full Recovery | 58 days | 120 days |
2008 Global Financial Crisis
- SNPS stock fell 49.1% from a high of $28.64 on 17 October 2007 to $14.59 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 February 2011
| SNPS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.1% | -56.8% |
| Time to Full Recovery | 811 days | 1,480 days |
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