Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Cadence Design Systems Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
| Item | Description | The company |
|---|---|---|
| EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | Cadence Design Systems Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Cadence Design Systems Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 73,624,639) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,463,403) |
| Valuation Ratio | |
| EV/EBITDA | 50.31 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 21.22 |
| Adobe Inc. | 24.59 |
| CrowdStrike Holdings Inc. | 356.42 |
| International Business Machines Corp. | 19.58 |
| Intuit Inc. | 35.83 |
| Microsoft Corp. | 23.28 |
| Oracle Corp. | 26.37 |
| Palantir Technologies Inc. | 468.74 |
| Palo Alto Networks Inc. | 101.58 |
| Salesforce Inc. | 32.84 |
| ServiceNow Inc. | 83.93 |
| Synopsys Inc. | 39.22 |
| EV/EBITDA, Sector | |
| Software & Services | 32.80 |
| EV/EBITDA, Industry | |
| Information Technology | 37.68 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Cadence Design Systems Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 81,383,702) | 50,546,221) | 36,751,293) | 36,562,087) | 19,637,403) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,463,403) | 1,200,385) | 927,723) | 799,150) | 620,586) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 55.61 | 42.11 | 39.61 | 45.75 | 31.64 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | |
| Adobe Inc. | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | 14.41 | 22.17 | 12.53 | 12.28 | 10.23 | |
| Intuit Inc. | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | |
| Microsoft Corp. | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | |
| Oracle Corp. | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | |
| Palantir Technologies Inc. | 175.93 | — | — | — | — | |
| Palo Alto Networks Inc. | 85.08 | 515.19 | — | 349.99 | 117.18 | |
| Salesforce Inc. | 38.42 | 38.91 | 33.92 | 49.78 | 56.71 | |
| ServiceNow Inc. | 96.48 | 104.30 | 147.45 | 220.91 | — | |
| Synopsys Inc. | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 25.00 | 22.24 | 25.29 | 22.90 | — | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 23.49 | 18.19 | 20.35 | 19.58 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 81,383,702 ÷ 1,463,403 = 55.61
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | Cadence Design Systems Inc. EV/EBITDA ratio increased from 2021 to 2022 and from 2022 to 2023. |