30 years of historical data (1996–2025) · Technology · Software - Application
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cadence Design Systems, Inc. trades at 74.2x earnings, 5% above its 5-year average of 70.6x, sitting at the 76th percentile of its historical range. Compared to the Technology sector median P/E of 25.2x, the stock trades at a premium of 194%. On a free-cash-flow basis, the stock trades at 51.6x P/FCF, 7% below the 5-year average of 55.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $81.9B | $85.4B | $82.3B | $74.3B | $44.2B | $52.0B | $38.2B | $19.5B | $12.2B | $11.7B | $7.3B |
| Enterprise Value | $81.4B | $84.9B | $82.2B | $74.0B | $44.2B | $51.3B | $37.7B | $19.2B | $12.1B | $11.8B | $7.6B |
| P/E Ratio → | 74.24 | 76.99 | 78.04 | 71.30 | 51.99 | 74.54 | 64.66 | 19.65 | 35.35 | 57.29 | 36.03 |
| P/S Ratio | 15.47 | 16.13 | 17.73 | 18.16 | 12.40 | 17.39 | 14.22 | 8.33 | 5.72 | 6.03 | 4.04 |
| P/B Ratio | 15.05 | 15.61 | 17.60 | 21.82 | 16.09 | 18.96 | 15.30 | 9.25 | 9.49 | 11.85 | 9.90 |
| P/FCF | 51.62 | 53.84 | 73.59 | 59.59 | 39.53 | 50.25 | 47.09 | 29.70 | 22.50 | 28.39 | 18.78 |
| P/OCF | 47.39 | 49.42 | 65.27 | 55.06 | 35.57 | 47.20 | 42.16 | 26.67 | 20.21 | 24.89 | 16.51 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cadence Design Systems, Inc.'s enterprise value stands at 43.4x EBITDA, 11% below its 5-year average of 48.9x. The Technology sector median is 15.7x, placing the stock at a 175% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 16.03 | 17.71 | 18.10 | 12.40 | 17.18 | 14.05 | 8.21 | 5.68 | 6.05 | 4.17 |
| EV / EBITDA | 43.35 | 45.22 | 53.19 | 53.00 | 36.54 | 56.42 | 47.36 | 31.21 | 23.57 | 26.76 | 20.78 |
| EV / EBIT | 49.34 | 51.47 | 55.86 | 56.17 | 41.36 | 65.36 | 57.66 | 38.53 | 29.80 | 35.28 | 26.39 |
| EV / FCF | — | 53.51 | 73.54 | 59.39 | 39.53 | 49.64 | 46.52 | 29.29 | 22.34 | 28.49 | 19.36 |
Margins and return-on-capital ratios measuring operating efficiency
Cadence Design Systems, Inc. earns an operating margin of 31.1%. ROE of 21.9% indicates solid capital efficiency. ROIC of 25.9% represents excellent returns on invested capital.
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.6% | 85.6% | 86.0% | 89.4% | 89.6% | 89.7% | 88.6% | 88.6% | 87.9% | 87.8% | 85.9% |
| Operating Margin | 31.1% | 31.1% | 29.1% | 30.6% | 30.1% | 26.1% | 24.1% | 21.1% | 18.5% | 16.7% | 13.5% |
| Net Profit Margin | 20.9% | 20.9% | 22.7% | 25.5% | 23.8% | 23.3% | 22.0% | 42.3% | 16.2% | 10.5% | 11.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.9% | 21.9% | 26.1% | 33.9% | 31.0% | 26.6% | 25.7% | 58.3% | 30.4% | 23.6% | 19.2% |
| ROA | 11.6% | 11.6% | 14.4% | 19.3% | 17.8% | 16.7% | 16.2% | 34.0% | 14.1% | 9.0% | 9.1% |
| ROIC | 25.9% | 25.9% | 26.1% | 31.8% | 33.2% | 28.3% | 25.1% | 24.4% | 26.6% | 24.3% | 17.7% |
| ROCE | 20.5% | 20.5% | 23.1% | 31.8% | 29.8% | 23.7% | 22.1% | 22.1% | 22.4% | 19.7% | 14.7% |
Solvency and debt-coverage ratios — lower is generally safer
Cadence Design Systems, Inc. carries a Debt/EBITDA ratio of 1.3x, which is manageable (55% below the sector average of 3.0x). The company holds a net cash position — cash of $3.0B exceeds total debt of $2.5B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 14.2x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.45 | 0.45 | 0.55 | 0.22 | 0.32 | 0.17 | 0.18 | 0.20 | 0.35 | 0.74 | 0.93 |
| Debt / EBITDA | 1.32 | 1.32 | 1.67 | 0.55 | 0.73 | 0.50 | 0.58 | 0.70 | 0.86 | 1.66 | 1.90 |
| Net Debt / Equity | — | -0.10 | -0.01 | -0.07 | 0.00 | -0.23 | -0.19 | -0.13 | -0.07 | 0.04 | 0.31 |
| Net Debt / EBITDA | -0.28 | -0.28 | -0.04 | -0.17 | 0.00 | -0.70 | -0.59 | -0.45 | -0.17 | 0.09 | 0.63 |
| Debt / FCF | — | -0.33 | -0.05 | -0.20 | 0.00 | -0.61 | -0.58 | -0.42 | -0.16 | 0.10 | 0.58 |
| Interest Coverage | 14.16 | 14.16 | 17.77 | 34.58 | 46.82 | 45.88 | 31.11 | 26.12 | 17.12 | 12.62 | 10.35 |
Net cash position: cash ($3.0B) exceeds total debt ($2.5B)
Short-term solvency ratios and asset-utilisation metrics
Cadence Design Systems, Inc.'s current ratio of 2.86x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 1.24x to 2.86x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.86 | 2.86 | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | 1.74 | 1.34 | 1.53 | 1.20 |
| Quick Ratio | 2.67 | 2.67 | 2.74 | 1.13 | 1.17 | 1.65 | 1.76 | 1.66 | 1.30 | 1.47 | 1.13 |
| Cash Ratio | 1.84 | 1.84 | 2.03 | 0.72 | 0.66 | 1.12 | 1.17 | 1.05 | 0.75 | 1.08 | 0.80 |
| Asset Turnover | — | 0.52 | 0.52 | 0.72 | 0.69 | 0.68 | 0.68 | 0.70 | 0.87 | 0.80 | 0.87 |
| Inventory Turnover | 2.51 | 2.51 | 2.51 | 2.39 | 2.90 | 2.65 | 4.02 | 4.77 | 9.19 | 7.15 | 6.50 |
| Days Sales Outstanding | — | 65.12 | 53.51 | 43.66 | 49.88 | 42.07 | 47.37 | 47.58 | 50.72 | 35.77 | 31.59 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cadence Design Systems, Inc. returns 1.1% to shareholders annually primarily through share buybacks. The earnings yield of 1.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 1.3% | 1.3% | 1.4% | 1.9% | 1.3% | 1.5% | 5.1% | 2.8% | 1.7% | 2.8% |
| FCF Yield | 1.9% | 1.9% | 1.4% | 1.7% | 2.5% | 2.0% | 2.1% | 3.4% | 4.4% | 3.5% | 5.3% |
| Buyback Yield | 1.1% | 1.1% | 1.0% | 1.1% | 2.6% | 1.4% | 1.3% | 2.0% | 2.6% | 1.3% | 13.1% |
| Total Shareholder Yield | 1.1% | 1.1% | 1.0% | 1.1% | 2.6% | 1.4% | 1.3% | 2.0% | 2.6% | 1.3% | 13.1% |
| Shares Outstanding | — | $273M | $274M | $273M | $275M | $279M | $280M | $281M | $281M | $280M | $291M |
Compare CDNS with 7 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| CDNSYou | $82B | 74.2 | 43.4 | 51.6 | 85.6% | 31.1% | 21.9% | 25.9% | 1.3 |
| ADSK | $53B | 47.0 | 33.7 | 21.8 | 96.8% | 23.3% | 39.7% | 33.3% | 1.7 |
| PTC | $19B | 25.8 | 17.8 | 21.8 | 83.8% | 35.9% | 20.9% | 14.9% | 1.2 |
| BSY | $11B | 43.0 | 33.7 | 21.2 | 81.5% | 24.1% | 24.9% | 11.4% | 3.5 |
| FIG | $2B | -7.9 | — | 9.7 | 82.4% | -122.2% | -88.2% | -95.3% | — |
| PDFS | $1B | 337.8 | 310.7 | — | 69.8% | -0.3% | 1.7% | -0.3% | 1.3 |
| MTLS | $305M | 19.1 | 6.3 | 51.0 | 56.5% | 3.5% | 5.5% | 3.9% | 1.3 |
| SVCO | $103M | -2.2 | — | — | 79.8% | -67.5% | -72.0% | -66.3% | — |
| Technology Median | — | 25.2 | 15.7 | 17.3 | 49.8% | -0.9% | 1.1% | 2.9% | 3.0 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonCadence Design Systems, Inc.'s current P/E ratio is 74.2x. The historical average is 53.0x. This places it at the 76th percentile of its historical range.
Cadence Design Systems, Inc.'s current EV/EBITDA is 43.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.3x.
Cadence Design Systems, Inc.'s return on equity (ROE) is 21.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.6%.
Based on historical data, Cadence Design Systems, Inc. is trading at a P/E of 74.2x. This is at the 76th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Cadence Design Systems, Inc. has 85.6% gross margin and 31.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Cadence Design Systems, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.