Valuation dashboard for Cadence Design Systems, Inc. (CDNS) with P/E 65.19, P/B 13.06, EV/EBITDA 38.76 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.
Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware.
Analysis Summary
Cadence Design Systems, Inc. reported revenue of $5.30B in the most recent fiscal year, growing at a 5-year CAGR of 14.6%. Net income reached $1.11B, with a 13.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 85.7%, operating margin 28.9%, net margin 22.5%.
At $327.89 (closing price, October 30, 2026), CDNS trades at a P/E of 65.19 and an ROE of 21.43%. Market capitalisation stands at $90.0B, placing it among large-cap names.
Balance sheet quality for CDNS: current ratio of 2.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 65.19 |
| Price / Book | 13.06 |
| EV / EBITDA | 38.76 |
| Dividend Yield | 0.00% |
Valuation Models
| DCF Fair Value | $139.03 |
| vs Current Price | -57.6% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| CDNS | Cadence Design Systems, Inc. | $90.0B | 65.19 | 13.06 | 21.4% |
| SNPS | Synopsys, Inc. | $89.6B | 81.76 | 2.88 | 3.6% |
| SHOP.TO | Shopify Inc. | CAD 286.0B | 105.70 | 16.08 | 15.1% |
| SAP | SAP SE | $273.9B | 29.80 | 5.29 | 17.8% |
| 0VHA.L | Shopify Inc. | $219.9B | 113.21 | 17.22 | 15.1% |
| SHOP | Shopify Inc. | $204.4B | 105.70 | 16.08 | 15.1% |
| CRM | Salesforce, Inc. | $188.6B | 20.91 | 4.90 | 20.2% |
| 0L5N.L | ServiceNow, Inc. | $157.1B | 98.73 | 13.12 | 13.8% |
Price
| Price | $327.89 (closing price, October 30, 2026) |
| Market Cap | $90.0B |
| Exchange | NASDAQ |
| Country | US |
Profitability
| Return on Equity | 21.43% |
| Return on Invested Capital | 12.80% |
| Return on Assets | 11.29% |
| Gross Margin | 85.68% |
| Operating Margin | 28.95% |
| Net Margin | 22.51% |
Related companies: SNPS · SHOP.TO · SAP · 0VHA.L · SHOP · CRM · 0L5N.L · UBER
Explore sector: Technology · Software - Application
More sections of CDNS: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
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