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 43.16. The fair price of Cadence Design Systems Inc (CDNS) is between 340.01 to 402.82 according to relative valuation methord. Compared to the current price of 317.78 USD , Cadence Design Systems Inc is Undervalued By 6.54%.
Relative Value
Fair Zone
340.01-402.82
Current Price：317.78
6.54%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
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 19.54 , the current P/B ratio is approximately -16.85% higher. Relative to its 5-year average P/B ratio of 18.19, the current P/B ratio is about -10.66% 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 1.61%, the current FCF yield is approximately 8.86% lower. Relative to its 5-year average FCF yield of 1.89% , the current FCF yield is about -7.33% lower.
P/B
Median3y
19.54
Median5y
18.19
FCF Yield
Median3y
1.61
Median5y
1.89
Competitors Valuation Multiple
AI Analysis for CDNS
The average P/S ratio for CDNS competitors is 8.78, providing a benchmark for relative valuation. Cadence Design Systems Inc Corp (CDNS.O) exhibits a P/S ratio of 14.69, which is 67.33% above the industry average. Given its robust revenue growth of 10.15%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CDNS
1Y
3Y
5Y
Market capitalization of CDNS increased by 0.00% over the past 1 year. 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 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 43.16. The fair price of Cadence Design Systems Inc (CDNS) is between 340.01 to 402.82 according to relative valuation methord. Compared to the current price of 317.78 USD , Cadence Design Systems Inc is Undervalued By 6.54% .
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 340.01 to 402.82 according to relative valuation methord.
How does CDNS's valuation metrics compare to the industry average?
The average P/S ratio for CDNS's competitors is 8.78, providing a benchmark for relative valuation. Cadence Design Systems Inc Corp (CDNS) exhibits a P/S ratio of 14.69, which is 67.33% above the industry average. Given its robust revenue growth of 10.15%, this premium appears unsustainable.
What is the current P/B ratio for Cadence Design Systems Inc (CDNS) as of Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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 Jan 10 2026?
As of Jan 10 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.