Cadence Design Systems, Inc. (CDNS) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Application
EV/EBITDA
↓
51.74
+6% vs avg
5yr avg: 48.85
30Y Low6.8·High56.4
P/FCF
↑
61.75
+12% vs avg
5yr avg: 55.36
30Y Low12.8·High73.6
P/B Ratio
↓
17.72
-2% vs avg
5yr avg: 18.02
30Y Low1.9·High21.8
ROE
↓
21.9%
↑-22% vs avg
5yr avg: 27.9%
30Y Low-170%·High74%
Debt/EBITDA
↑
1.32
↑+38% vs avg
5yr avg: 0.95
30Y Low0.0·High7.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CDNS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cadence Design Systems, Inc. trades at 87.4x earnings, 24% above its 5-year average of 70.6x, sitting at the 88th percentile of its historical range. Compared to the Technology sector median P/E of 27.5x, the stock trades at a premium of 218%. On a free-cash-flow basis, the stock trades at 61.7x P/FCF, 12% above 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 | $98.0B | $85.4B | $82.3B | $74.3B | $44.2B | $52.0B | $38.2B | $19.5B | $12.2B | $11.7B | $7.3B |
| Enterprise Value | $97.5B | $84.9B | $82.2B | $74.0B | $44.2B | $51.3B | $37.7B | $19.2B | $12.1B | $11.8B | $7.6B |
| P/E Ratio → | 87.41 | 76.99 | 78.04 | 71.30 | 51.99 | 74.54 | 64.66 | 19.65 | 35.35 | 57.29 | 36.03 |
| P/S Ratio | 18.50 | 16.13 | 17.73 | 18.16 | 12.40 | 17.39 | 14.22 | 8.33 | 5.72 | 6.03 | 4.04 |
| P/B Ratio | 17.72 | 15.61 | 17.60 | 21.82 | 16.09 | 18.96 | 15.30 | 9.25 | 9.49 | 11.85 | 9.90 |
| P/FCF | 61.75 | 53.84 | 73.59 | 59.59 | 39.53 | 50.25 | 47.09 | 29.70 | 22.50 | 28.39 | 18.78 |
| P/OCF | 56.68 | 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
CDNS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cadence Design Systems, Inc.'s enterprise value stands at 51.7x EBITDA, 6% above its 5-year average of 48.8x. The Technology sector median is 17.4x, placing the stock at a 198% 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 | 51.74 | 45.08 | 53.19 | 53.00 | 36.54 | 56.42 | 47.36 | 31.21 | 23.57 | 26.76 | 20.78 |
| EV / EBIT | 59.08 | 51.82 | 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 |
CDNS Profitability
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.
Margins
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 | 86.4% | 86.4% | 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% |
Return on Capital
| 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% |
CDNS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Cadence Design Systems, Inc. carries a Debt/EBITDA ratio of 1.3x, which is manageable (54% below the sector average of 2.9x). 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 14.1x 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 | 14.06 | 14.06 | 19.37 | 36.43 | 46.58 | 46.26 | 31.50 | 26.44 | 17.60 | 12.99 | 12.12 |
Net cash position: cash ($3.0B) exceeds total debt ($2.5B)
CDNS Liquidity & Efficiency
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 | 2.38 | 2.38 | 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 |
CDNS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cadence Design Systems, Inc. returns 0.9% to shareholders annually primarily through share buybacks. The earnings yield of 1.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 1.3% | 1.3% | 1.4% | 1.9% | 1.3% | 1.5% | 5.1% | 2.8% | 1.7% | 2.8% |
| FCF Yield | 1.6% | 1.9% | 1.4% | 1.7% | 2.5% | 2.0% | 2.1% | 3.4% | 4.4% | 3.5% | 5.3% |
| Buyback Yield | 0.9% | 1.1% | 1.0% | 1.1% | 2.6% | 1.4% | 1.3% | 2.0% | 2.6% | 1.3% | 13.1% |
| Total Shareholder Yield | 0.9% | 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 |
Peer Comparison
Compare CDNS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CDNSYou | $98B | 87.4 | 51.7 | 61.7 | 86.4% | 31.1% | 21.9% | 25.9% | 1.3 |
 SNPS | $97B | 62.7 | 68.5 | 71.6 | 77.0% | 13.0% | 7.1% | 3.0% | 9.1 |
 MTSI | $23B | -424.4 | 122.7 | 120.5 | 54.9% | 13.4% | -4.4% | 6.0% | 2.8 |
 PEGA | $6B | 17.1 | 20.8 | 12.5 | 75.9% | 15.1% | 57.3% | 27.2% | 0.3 |
 PTC | $16B | 22.5 | 15.6 | 19.0 | 83.8% | 35.9% | 20.9% | 14.9% | 1.2 |
 NVDA | $5.0T | 42.4 | 37.9 | 52.2 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 INTC | $567B | -1918.7 | 51.3 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 AMD | $687B | 159.0 | 102.4 | 102.0 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 AVGO | $2.0T | 89.2 | 60.3 | 74.9 | 67.8% | 39.9% | 31.0% | 14.9% | 1.9 |
 QCOM | $203B | 38.5 | 15.2 | 15.8 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
 ARM | $252B | 316.4 | 247.8 | 1415.8 | 94.9% | 20.6% | 13.1% | 14.2% | 0.4 |
| Technology Median | — | 27.5 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full CDNS Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See CDNS's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs CDNS Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare CDNS vs SNPS
Side-by-side business, growth, and profitability comparison vs Synopsys, Inc..
Start ComparisonCDNS — Frequently Asked Questions
Quick answers to the most common questions about buying CDNS stock.
What is Cadence Design Systems, Inc.'s P/E ratio?
Cadence Design Systems, Inc.'s current P/E ratio is 87.4x. The historical average is 53.0x. This places it at the 88th percentile of its historical range.
What is Cadence Design Systems, Inc.'s EV/EBITDA?
Cadence Design Systems, Inc.'s current EV/EBITDA is 51.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.3x.
What is Cadence Design Systems, Inc.'s ROE?
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%.
Is CDNS stock overvalued?
Based on historical data, Cadence Design Systems, Inc. is trading at a P/E of 87.4x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Cadence Design Systems, Inc.'s profit margins?
Cadence Design Systems, Inc. has 86.4% gross margin and 31.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Cadence Design Systems, Inc. have?
Cadence Design Systems, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.