Gainify
HEAD-TO-HEAD: $NVDA vs. $AMD both trading under 40x forward P/E.

Which one are you backing here? https://t.co/YjVeVr8Dnj
tweet

Andrew Sather
RT @IFB_podcast: What is Return on Equity or ROE?

Quick explainer to break it down. https://t.co/7k7XUoyAb6
tweet

Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A quality valuation analysis on $SNPS 🧘🏽‍♂️

•NTM P/E Ratio: 30.84x
•5-Year Mean: 37.80x

•NTM FCF Yield: 2.42%
•5-Year Mean: 2.67%

As you can see, $SNPS appears to be trading somewhere below fair value & near fair value

Going forward, investors can receive ~22% MORE in earnings per share & ~9% LESS in FCF per share 🧠***

Before we get into valuation, let’s take a look at why $SNPS is a good business

BALANCE SHEET🆗
•Cash & Short-Term Inv: $2.59B
•Long-Term Debt: $14.32B

$SNPS has a good balance sheet & 5.38x FFO Interest Coverage

RETURN ON CAPITAL✅➡️🆗
•2020: 11.8%
•2021: 12.9%
•2022: 18.7%
•2023: 19.3%
•2024: 14.0%
•LTM: 2.6%

RETURN ON EQUITY✅➡️🆗
•2020: 14.7%
•2021: 14.8%
•2022: 17.8%
•2023: 20.7%
•2024: 18.6%
•LTM: 6.5%

$SNPS had stronger return metrics, but they decreased in the LTM due to the Ansys acquisition (to be expected)

REVENUES✅
•2019: $3.36B
•2024: $6.13B
•CAGR: 12.77%

FREE CASH FLOW✅
•2019: $602.38M
•2024: $1.28B
•CAGR: 16.34%

*FCF revised down in 2025 to $954.74M, with 2026E at $2.04B

NORMALIZED EPS✅
•2019: $4.56
•2024: $13.20
•CAGR: 23.68%

SHARE BUYBACKS❌
•2019 Shares Outstanding: 154.19M
•LTM Shares Outstanding: 157.68M

MARGINS✅
•LTM Gross Margins: 81.1%
•LTM Operating Margins: 17.2%
•LTM Net Income Margins: 18.1%

***NOW TO VALUATION 🧠

As stated above, investors can expect to receive ~22% MORE in EPS & ~9% LESS in FCF per share

Using Benjamin Graham’s 2G rule of thumb, $SNPS has to grow earnings at a 15.42% CAGR over the next several years to justify its valuation

Today, analysts anticipate 2025 - 2028 EPS growth over the next few years to be more than the (15.42%) required growth rate:

2025E: $12.82 (-3% YoY) *FY Oct

2026E: $14.02 (9% YoY)
2027E: $17.10 (22% YoY)
2028E: $20.17 (18% YoY)

$SNPS had a great track record of meeting analyst estimates ~2 years out, so let’s assume $SNPS ends 2028 with $20.17 in EPS & see its CAGR potential assuming different multiples:

32x P/E: $645.44💵 … ~17.6% CAGR

31x P/E: $625.27💵 … ~16.4% CAGR

30x P/E: $605.10💵 … ~15.2% CAGR

29x P/E: $584.93💵 … ~14.0% CAGR

28x P/E: $564.76💵 … ~12.7% CAGR

27x P/E: $544.59💵 … ~11.4% CAGR

Given its quality, moat, predictability, & growth rate, I am comfortable relying on a ~28x multiple, making $SNPS a great consideration today at $387💵

$SNPS will thrive as AI and tech advancements drive chip demand, boosting the need for its cutting-edge semiconductor design software that helps create faster, smarter chips, among other things

Of course recent downward revisions impose a level of skepticism over the short-term, however EDA (75% of revenue) continues to be a strong segment, growing +23% YoY in its latest Q3 report

I consider $SNPS a strong purchase with a substantial margin of safety closer to $350💵, or ~27x NTM earnings (~10% below todays price)

Given today’s estimates, at $350💵 I can reasonably expect ~13.7% CAGR while assuming an attractive & conservative 26x multiple
___

𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.

𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.

𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭�[...]

�𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
tweet

Reactions Videos
mrfieldgeneral sad crying heartbroken /// reaction meme https://t.co/0pctzq2O5v
tweet

Iqra Saifi
Veo-3 fast on Flow 🧢

"A hyper-realistic, surreal transition. The shot begins on a detailed pencil sketch of a superhero on a piece of paper, which then comes to life, bursting from the page into a fully-realized, three-dimensional world.", "mood": "Epic, powerful, heroic, awe-inspiring, magical.", "style": "Cinematic realism, photorealistic CGI, 8K resolution, combining the aesthetics of comic book art and a blockbuster superhero film." }, "camera": { "type": "Static, Overhead Shot", "lens": "50mm Macro Lens", "aperture": "f/4.0", "position": "Starts directly overhead, looking down at a piece of drawing paper on a wooden artist's desk.", "movement": "No physical camera movement. The transition and animation create the sense of dynamic action." }, "environment": { "initial_location": "An artist's messy but organized drafting table.", "initial_details": "The paper is a high-quality, textured drawing paper. Surrounding the main drawing are various drafting pencils, erasers, and architectural rulers. The desk has a warm, wooden grain.", "final_location": "A war-torn, destroyed urban environment, seen only from the ground up as the character lands.", "final_details": "The ground is cracked asphalt littered with small chunks of concrete and rebar. The transition happens so quickly that the final environment is only glimpsed." }, "lighting": { "initial_lighting": { "type": "Soft, Diffused Studio Light", "position": "From the side.", "color_temperature": "5000K (Neutral white)", "intensity": "Evenly illuminates the drawing paper." }, "transition_lighting": { "type": "Magical, Emissive Light", "source": "Emanates from the drawing itself.", "color": "Bright, heroic blue and white.", "intensity": "Grows rapidly, overpowering the studio light, casting dynamic shadows from the pencils on the desk." }, "final_lighting": { "type": "Dramatic, Late-Afternoon Sun", "position": "Low in the sky, casting long shadows in the final environment." } }, "main_subject": { "form": "Captain America, as depicted in the provided image.", "sketch_version": "A highly-detailed, photorealistic pencil sketch with visible texturing, cross-hatching, and smudging. The background is an architectural blueprint of a city map.", "real_version": "A hyper-realistic 3D model with incredible detail. His suit has PBR materials showing the texture of the fabric, the scuffed leather of his boots and gloves, and the battle-worn, scratched surface of his vibranium shield." }, "animation": { "transition_effect": "A '2D to 3D' transformation.", "action_sequence": [ { "time": "0.0s - 2.0s", "action": "The camera holds on the static drawing. A faint, blue energy starts to glow from the lines of the sketch." }, { "time": "2.1s - 4.0s", "action": "The energy intensifies. The pencil lines begin to lift off the page as 3D particles. The character's arm and shield begin to materialize, pushing upwards from the paper's surface." }, { "time": "4.1s - 6.0s", "action": "In a burst of energy and shattering pencil particles, the fully-formed, realistic Captain America leaps out of the drawing. The paper below is left scorched and torn where he emerged." }, { "time": "6.1s - 8.0s", "action": "He lands powerfully on the 'real' ground of the destroyed city, shield raised. The camera angle is now at ground level, looking up at him heroically as dust and debris settle." } ] }, "audio_design": { "style": "Epic, powerful, and transitional.", "timeline": [ { "time": "0.0s - 2.0s", "sound": "The gentle, scratching sound of a pencil on paper, mixed with a faint, magical, humming sound that grows in intensity." }, { "time": "2.1s - 6.0s", "sound": "The humming crescendos into a powerful surge of energy, with crackling electrical sounds and the sound of shattering graphite." }, { "time": "6.1s", "sound": "A massive, impactful 'THOOM' as he lands, combined with the crunch of rubber under his boots."
tweet

Gainify
RANKING: Top 15 Mega-Caps ranked by Forward PEG (high → low)

15. $TSLA ➝ 10.79x
14. $WMT ➝ 4.81x
13. $ORCL ➝ 3.30x
12. $AAPL ➝ 2.96x
11. $MSFT ➝ 2.73x
10. $MA ➝ 2.47x
9. $V ➝ 2.33x
8. $NFLX ➝ 2.02x
7. $JPM ➝ 2.00x
6. $AMZN ➝ 1.98x
5. $AVGO ➝ 1.85x
4. $GOOGL ➝ 1.60x
3. $META ➝ 1.56x
2. $NVDA ➝ 1.10x
1. $LLY ➝ 0.90x
tweet

Dimitry Nakhla | Babylon Capital®
Google Cloud Quarterly Revenue 💸

$GOOG $GOOGL https://t.co/P8cSO0iqxf
tweet

AkhenOsiris
$GENI Benchmark report yesterday on Prediction Market Opportunity

Prediction markets (Kalshi, Polymarket) are expanding, and the NFL has stated these operators must purchase official Genius data to operate legitimately. Kalshi itself has said it “wants to work with all of the leagues.” In our view, this makes prediction markets an incremental customer set rather than a threat, expanding GENI’s TAM without cannibalizing sportsbooks.

*************************************************************
Kalshi just signed a deal with Statscore, although unclear which sports they will use that data for. The more complex the in-game/live markets, the more likely GENI/SRAD will be needed.
tweet