The stock’s high multiple looks daunting, but a look at future earnings reveals a very different story about its price.

Synopsys (SNPS) finds itself at the center of an AI-driven semiconductor boom, providing the essential software that companies use to design the world’s most complex chips. That prime position comes with a premium price tag. On the surface, the stock looks expensive, trading at about 92.5 times its last twelve months of reported earnings. For many, the analysis stops there.

But that sticker price is misleading. The real story is the forward valuation discount, the way the multiple you pay falls on its own as earnings grow into the price.

What Patience Buys You

At today’s price of…