Cadence Design Systems Stock

Cadence Design Systems EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Cadence Design Systems (CDNS) as of Aug 21, 2026 is 49.41. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 59.75 — a change of -17.31% (lower).

EV/EBIT

49.41

YoY

-17.31%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Cadence Design Systems is 2026 49.41 . EV/EBIT (Enterprise Value to EBIT) of Cadence Design Systems was 2025 59.75 . It decreases by -17.31% lower compared to the previous year.

The Cadence Design Systems EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2019
39.43 base
Jan 1, 2020
59.21 base
Jan 1, 2021
66.56 base
Jan 1, 2022
40.84 base
Jan 1, 2023
58.88 base
Jan 1, 2024
60.41 base
Jan 1, 2025
51.71 base
Jan 1, 2026 (e)
38.19 base
YEARPRICE-TO-EBIT
2026 est 38.19
2025 51.71
2024 60.41
2023 58.88
2022 40.84
2021 66.56
2020 59.21
2019 39.43
2018 30.76
2017 35.26
2016 28.72
2015 22.64
2014 28.48
2013 21.86
2012 18.27
2011 23.39
2010 -162.99
2009 -12.85
2008 -0.58
2007 15.57
2006 24.52
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Cadence Design Systems Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Cadence Design Systems's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Cadence Design Systems's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Cadence Design Systems's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Cadence Design Systems grows earnings faster than its peers.

Cadence Design Systems Stock analysis

What does Cadence Design Systems do? Cadence Design Systems Inc is a US-based company specializing in software for the development of electronic design systems. It was founded in 1988 and is headquartered in San Jose, California. Cadence Design Systems was founded by Joe Costello, who served as the company's CEO until 1999. Costello had previously worked for various technology companies and recognized the potential for integrated software for the electronics industry, which had previously relied on multiple software tools. In 1990, the first product, Cadence Design Framework, was introduced. It was a groundbreaking tool for the development of integrated circuits (ICs) that revolutionized the industry and solidified Cadence Design Systems' position as a top manufacturer of design tools. Cadence Design Systems offers advanced technological solutions for the design and development of electronic systems. The products are diverse and aim to support customers in all phases of the system design pipeline, from planning and design to testing and verifying finished products. The company maintains a wide network of partners and customers that cater to the requirements and needs of end-users in various industries, including automotive, consumer electronics, aerospace, telecommunications, semiconductor, and healthcare. Cadence Design Systems' business model is based on providing solutions tailored to specific customer requirements. Cadence Design Systems categorizes its offerings into four main categories: - Design and construction products: This category includes tools for logic design, digital, analog, and mixed-signal IC design, PCB design, and design management. - Functional verification: This category includes tools for verifying the functions and behavior of ICs, as well as their simulation. - Digital and verification IP: This category includes integrated knowledge, code, and physical verification of digital and verification IP libraries. - Custom IC design and verification: This category includes instruments and methods for custom IC manufacturing. Cadence Design Systems offers a wide range of products and solutions that cater to the different needs of customers. Some of the most well-known and commonly used products are: - Cadence Allegro - a software suite for PCB design. - Cadence Virtuoso - a platform for analog circuit design. - Cadence Incisive - a platform for chip verification. - Cadence Palladium - a solution for fast chip verification using hardware accelerators. - Cadence JasperGold - a platform for formal verification in chip development. - Cadence Quantus - an integrated platform for mathematical analysis in chip development. In conclusion, Cadence Design Systems Inc is a leading company in the field of software and solutions for electronic design systems. The wide range of products and solutions offered by Cadence Design Systems allows customers to act in all stages of the design process. The company also heavily invests in research and development to ensure that its products are always at the forefront of technology. Cadence Design Systems is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Cadence Design Systems stock

EV/EBIT (Enterprise Value to EBIT) of Cadence Design Systems is 49.41 in 2026.

EV/EBIT (Enterprise Value to EBIT) of Cadence Design Systems changed from 59.75 to 49.41, representing a -17.31% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) Cadence Design Systems since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s Cadence Design Systems with sector peers and the industry average to assess whether it is attractive.

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Valuation — Cadence Design Systems

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