Synopsys Inc (SNPS) WACC Analysis

As of June 14, 2025, Synopsys Inc (SNPS) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate Synopsys Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.5%, the cost of debt is 4.0%, and the effective tax rate is 6.4%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.58 – 0.85
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 8.1%, Synopsys Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.