CDNS PE Ratio & Valuation, Is CDNS Overvalued

Historical Valuation

Cadence Design Systems Inc (CDNS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 40.29 is considered Undervalued compared with the five-year average of 43.21. The fair price of Cadence Design Systems Inc (CDNS) is between 384.23 to 442.38 according to relative valuation method. Compared to the current price of 290.32 USD , Cadence Design Systems Inc By Undervalued By 24.44%.

Relative Value

Fair Zone

384.23-442.38

Current Price：290.32

24.44%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Cadence Design Systems Inc (CDNS) has a current Price-to-Book (P/B) ratio of 16.25. Compared to its 3-year average P/B ratio of 19.60, the current P/B ratio is approximately -17.10% higher. Relative to its 5-year average P/B ratio of 18.29, the current P/B ratio is about -11.15% higher. Cadence Design Systems Inc (CDNS) has a Forward Free Cash Flow (FCF) yield of approximately 1.75%. Compared to its 3-year average FCF yield of 1.57%, the current FCF yield is approximately 11.30% lower. Relative to its 5-year average FCF yield of 1.88%, the current FCF yield is about -6.90% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for CDNS competitors is 10.57, providing a benchmark for relative valuation. Cadence Design Systems Inc Corp (CDNS.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of CDNS increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of CDNS in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is CDNS currently overvalued or undervalued?

Cadence Design Systems Inc (CDNS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 40.29 is considered Undervalued compared with the five-year average of 43.21. The fair price of Cadence Design Systems Inc (CDNS) is between 384.23 to 442.38 according to relative valuation method. Compared to the current price of 290.32 USD, Cadence Design Systems Inc is Undervalued By 24.44%.

What is Cadence Design Systems Inc (CDNS) fair value?

CDNS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Cadence Design Systems Inc (CDNS) is between 384.23 to 442.38 according to relative valuation method.

How does CDNS's valuation metrics compare to the industry average?

The average P/S ratio for CDNS's competitors is 10.57, providing a benchmark for relative valuation. Cadence Design Systems Inc Corp (CDNS) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.

What is the current P/B ratio for Cadence Design Systems Inc (CDNS) as of Mar 12 2026?

As of Mar 12 2026, Cadence Design Systems Inc (CDNS) has a P/B ratio of 16.25. This indicates that the market values CDNS at 16.25 times its book value.

What is the current FCF Yield for Cadence Design Systems Inc (CDNS) as of Mar 12 2026?

As of Mar 12 2026, Cadence Design Systems Inc (CDNS) has a FCF Yield of 1.75%. This means that for every dollar of Cadence Design Systems Inc's market capitalization, the company generates 1.75 cents in free cash flow.

What is the current Forward P/E ratio for Cadence Design Systems Inc (CDNS) as of Mar 12 2026?

As of Mar 12 2026, Cadence Design Systems Inc (CDNS) has a Forward P/E ratio of 40.29. This means the market is willing to pay $40.29 for every dollar of Cadence Design Systems Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Cadence Design Systems Inc (CDNS) as of Mar 12 2026?

As of Mar 12 2026, Cadence Design Systems Inc (CDNS) has a Forward P/S ratio of 14.69. This means the market is valuing CDNS at $14.69 for every dollar of expected revenue over the next 12 months.

CDNS Valuation