Cadence Design Systems, Inc. (CDNS) Financial Ratios
30 years of historical data (1996–2025) · Technology · Software - Application
EV/EBITDA
↓
56.50
+16% vs avg
5yr avg: 48.85
30Y Low6.8·High56.4
P/FCF
↑
67.40
↑+22% vs avg
5yr avg: 55.36
30Y Low12.8·High73.6
P/B Ratio
↓
19.34
+7% 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 95.4x earnings, 35% 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 29.0x, the stock trades at a premium of 229%. On a free-cash-flow basis, the stock trades at 67.4x P/FCF, 22% 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 | $107.0B | $85.4B | $82.3B | $74.3B | $44.2B | $52.0B | $38.2B | $19.5B | $12.2B | $11.7B | $7.3B |
| Enterprise Value | $106.4B | $84.9B | $82.2B | $74.0B | $44.2B | $51.3B | $37.7B | $19.2B | $12.1B | $11.8B | $7.6B |
| P/E Ratio → | 95.42 | 76.99 | 78.04 | 71.30 | 51.99 | 74.54 | 64.66 | 19.65 | 35.35 | 57.29 | 36.03 |
| P/S Ratio | 20.19 | 16.13 | 17.73 | 18.16 | 12.40 | 17.39 | 14.22 | 8.33 | 5.72 | 6.03 | 4.04 |
| P/B Ratio | 19.34 | 15.61 | 17.60 | 21.82 | 16.09 | 18.96 | 15.30 | 9.25 | 9.49 | 11.85 | 9.90 |
| P/FCF | 67.40 | 53.84 | 73.59 | 59.59 | 39.53 | 50.25 | 47.09 | 29.70 | 22.50 | 28.39 | 18.78 |
| P/OCF | 61.87 | 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 56.5x EBITDA, 16% above its 5-year average of 48.8x. The Technology sector median is 16.7x, placing the stock at a 239% 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 | 56.50 | 45.08 | 53.19 | 53.00 | 36.54 | 56.42 | 47.36 | 31.21 | 23.57 | 26.76 | 20.78 |
| EV / EBIT | 64.51 | 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 (55% 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 1.0% (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 | 1.0% | 1.3% | 1.3% | 1.4% | 1.9% | 1.3% | 1.5% | 5.1% | 2.8% | 1.7% | 2.8% |
| FCF Yield | 1.5% | 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 | $107B | 95.4 | 56.5 | 67.4 | 86.4% | 31.1% | 21.9% | 25.9% | 1.3 |
 SNPS | $87B | 56.7 | 62.6 | 64.6 | 77.0% | 13.0% | 7.1% | 3.0% | 9.1 |
 MTSI | $30B | -536.2 | 157.0 | 154.9 | 54.9% | 13.4% | -4.4% | 6.0% | 2.8 |
 PEGA | $5B | 14.1 | 17.1 | 10.4 | 75.9% | 15.1% | 57.3% | 27.2% | 0.3 |
 PTC | $14B | 18.9 | 13.3 | 15.9 | 83.8% | 35.9% | 20.9% | 14.9% | 1.2 |
 NVDA | $5.1T | 43.0 | 38.3 | 52.8 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
 INTC | $673B | -2274.9 | 60.4 | — | 34.8% | -0.0% | -0.2% | -0.0% | 4.0 |
 AMD | $876B | 202.8 | 130.6 | 130.1 | 49.5% | 10.7% | 7.2% | 4.7% | 0.7 |
 AVGO | $2.0T | 86.2 | 58.6 | 72.7 | 67.8% | 39.9% | 31.0% | 14.9% | 1.9 |
 QCOM | $238B | 45.1 | 17.7 | 18.6 | 55.4% | 27.9% | 23.3% | 29.1% | 1.2 |
 ARM | $468B | 517.0 | 402.1 | 477.6 | 92.5% | 18.5% | 12.0% | 12.3% | 0.4 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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CDNS — 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 95.4x. 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 56.5x. 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 95.4x. 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.