Core Viewpoint - Synopsys (SNPS) stock experienced a significant decline of 35.8% in a single day due to quarterly results that fell short of analysts' expectations and a lowered full-year outlook, primarily driven by decreased demand for its design intellectual property [1] Company Overview - Synopsys is an American electronic design automation (EDA) company that provides software, intellectual property (IP), and services for semiconductor design and verification, as well as software security and quality testing [3][6] - The company has a market capitalization of $62 billion and reported revenue of $6.4 billion, with a current stock price of $387.78 [8] Financial Performance - The last 12 months saw a revenue growth of 8.0% and an operating margin of 17.2% [8] - The company has a debt-to-equity ratio of 0.24 and a cash-to-assets ratio of 0.05, indicating a relatively low level of debt [8] Valuation Metrics - Synopsys is currently trading at a price-to-earnings (P/E) multiple of 31.1 and a price-to-EBIT (P/EBIT) multiple of 42.4, suggesting that the stock may be considered expensive [8] Historical Stock Performance - The stock has shown resilience during past economic downturns, recovering fully from significant declines, such as a 30.6% drop from $375.59 on December 27, 2021, to $260.83 on May 11, 2022, compared to a 25.4% decline in the S&P 500 [9] - Historical data indicates that the stock has fully recovered from previous crises, including a 34.3% drop during the COVID-19 pandemic and a 49.1% drop during the 2008 financial crisis [11]