CDNS Relative Valuation
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. If the market price exceeds this fair value range, CDNS is overvalued; if below, it's undervalued.
Historical Valuation
Cadence Design Systems Inc (CDNS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 43.63 is considered Undervalued compared with the five-year average of 43.16. The fair price of Cadence Design Systems Inc (CDNS) is between 361.77 to 423.26 according to relative valuation methord. Compared to the current price of 337.01 USD , Cadence Design Systems Inc is Undervalued By 6.84%.
Relative Value
Fair Zone
361.77-423.26
Current Price：337.01
6.84%
Undervalued
43.78
PE
1Y
3Y
5Y
Trailing
Forward
32.74
EV/EBITDA
Cadence Design Systems Inc. (CDNS) has a current EV/EBITDA of 32.74. The 5-year average EV/EBITDA is 32.36. The thresholds are as follows: Strongly Undervalued below 24.85, Undervalued between 24.85 and 28.61, Fairly Valued between 36.11 and 28.61, Overvalued between 36.11 and 39.86, and Strongly Overvalued above 39.86. The current Forward EV/EBITDA of 32.74 falls within the Historic Trend Line -Fairly Valued range.
35.30
EV/EBIT
Cadence Design Systems Inc. (CDNS) has a current EV/EBIT of 35.30. The 5-year average EV/EBIT is 34.65. The thresholds are as follows: Strongly Undervalued below 26.73, Undervalued between 26.73 and 30.69, Fairly Valued between 38.60 and 30.69, Overvalued between 38.60 and 42.56, and Strongly Overvalued above 42.56. The current Forward EV/EBIT of 35.30 falls within the Historic Trend Line -Fairly Valued range.
15.90
PS
Cadence Design Systems Inc. (CDNS) has a current PS of 15.90. The 5-year average PS is 14.34. The thresholds are as follows: Strongly Undervalued below 10.48, Undervalued between 10.48 and 12.41, Fairly Valued between 16.27 and 12.41, Overvalued between 16.27 and 18.20, and Strongly Overvalued above 18.20. The current Forward PS of 15.90 falls within the Historic Trend Line -Fairly Valued range.
50.11
P/OCF
Cadence Design Systems Inc. (CDNS) has a current P/OCF of 50.11. The 5-year average P/OCF is 43.90. The thresholds are as follows: Strongly Undervalued below 26.57, Undervalued between 26.57 and 35.23, Fairly Valued between 52.56 and 35.23, Overvalued between 52.56 and 61.22, and Strongly Overvalued above 61.22. The current Forward P/OCF of 50.11 falls within the Historic Trend Line -Fairly Valued range.
55.36
P/FCF
Cadence Design Systems Inc. (CDNS) has a current P/FCF of 55.36. The 5-year average P/FCF is 48.14. The thresholds are as follows: Strongly Undervalued below 28.43, Undervalued between 28.43 and 38.29, Fairly Valued between 58.00 and 38.29, Overvalued between 58.00 and 67.85, and Strongly Overvalued above 67.85. The current Forward P/FCF of 55.36 falls within the Historic Trend Line -Fairly Valued range.
Cadence Design Systems Inc (CDNS) has a current Price-to-Book (P/B) ratio of 17.60. Compared to its 3-year average P/B ratio of 19.51 , the current P/B ratio is approximately -9.82% higher. Relative to its 5-year average P/B ratio of 18.15, the current P/B ratio is about -3.02% higher. Cadence Design Systems Inc (CDNS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.63%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.90% , the current FCF yield is about -100.00% lower.
17.66
P/B
Median3y
19.51
Median5y
18.15
1.62
FCF Yield
Median3y
1.63
Median5y
1.90
Competitors Valuation Multiple
The average P/S ratio for CDNS's competitors is , providing a benchmark for relative valuation. Cadence Design Systems Inc Corp (CDNS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.15%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CDNS increased by 12.26% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.22B to 1.34B.
The secondary factor is the Margin Expansion, contributed 9.49%to the performance.
Overall, the performance of CDNS in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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