Cadence Design Systems (CDNS) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design pro...
Cadence Design Systems (CDNS) currently trades at a P/E ratio of 63.85 (historical range: 50.00–100.82, median: 71.92), placing it at the 21th percentile — below its historical average, P/S ratio of 15.07 (range: 11.43–22.45, 26th percentile — below its historical average), EV/EBITDA of 50.33 (range: 37.08–77.91, 20th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Cadence Design Systems's P/E ratio has expanded by 15% over the observed period (from an average of 67.0 to 77.2).
Cadence Design Systems trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 63.85 | 71.92 | 21th | below its historical average |
| P/S Ratio | 15.07 | 16.62 | 26th | below its historical average |
| EV/EBITDA | 50.33 | 58.42 | 20th | below its historical average |
| FCF Yield | 1.91% | 1.77% | 69th | below its historical average |
Cadence Design Systems (CDNS) Valuation & P/E History
Cadence Design Systems (CDNS) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry currently trading at $314.00 with a market capitalization of $86.5 billion. This page provides historical valuation analysis for CDNS based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 63.85 is below the historical median of 71.92, placing CDNS at the 21th percentile of its valuation range. The P/S ratio of 15.07 compares to a median of 16.62.
CDNS Valuation Metrics & Historical Range
The valuation table above shows Cadence Design Systems's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether CDNS is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests CDNS is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Cadence Design Systems.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is CDNS Overvalued or Undervalued?
Cadence Design Systems trades well below its historical valuation range across most metrics. The overall valuation percentile of 22 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive CDNS is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full CDNS analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.CDNS trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.