Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Cadence Design Systems Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	1,055,484)	1,041,144)	848,952)	695,955)	590,644)
Net noncash charges	414,042)	406,810)	305,397)	299,205)	329,695)
Changes in operating assets and liabilities, net of effect of acquired businesses	(208,975)	(98,778)	87,545)	105,798)	(15,417)
Net cash provided by operating activities	1,260,551)	1,349,176)	1,241,894)	1,100,958)	904,922)
Cash paid for interest, net of tax¹	32,846)	28,297)	17,109)	14,515)	18,394)
Purchases of property, plant and equipment	(142,542)	(102,337)	(123,215)	(65,298)	(94,813)
Purchases of intangible assets	—)	(166)	(1,000)	(1,583)	—)
Free cash flow to the firm (FCFF)	1,150,855)	1,274,970)	1,134,788)	1,048,592)	828,503)

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Cadence Design Systems Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Cadence Design Systems Inc. FCFF increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Interest Paid, Net of Tax

Cadence Design Systems Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	24.00%	19.00%	19.00%	9.00%	7.00%
Interest Paid, Net of Tax
Cash paid for interest, before tax	43,219)	34,934)	21,122)	15,950)	19,778)
Less: Cash paid for interest, tax²	10,373)	6,637)	4,013)	1,436)	1,384)
Cash paid for interest, net of tax	32,846)	28,297)	17,109)	14,515)	18,394)

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

² 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 43,219 × 24.00% = 10,373

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Enterprise Value to FCFF Ratio, Current

Cadence Design Systems Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	71,655,845)
Free cash flow to the firm (FCFF)	1,150,855)
Valuation Ratio
EV/FCFF	62.26
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	22.00
Adobe Inc.	20.85
CrowdStrike Holdings Inc.	80.43
International Business Machines Corp.	19.34
Intuit Inc.	36.24
Microsoft Corp.	45.54
Oracle Corp.	32.23
Palantir Technologies Inc.	180.64
Palo Alto Networks Inc.	36.67
Salesforce Inc.	20.75
ServiceNow Inc.	48.98
Synopsys Inc.	50.57
Workday Inc.	26.33
EV/FCFF, Sector
Software & Services	38.15
EV/FCFF, Industry
Information Technology	41.30

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Cadence Design Systems Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	70,504,589)	81,383,702)	50,546,221)	36,751,293)	36,562,087)
Free cash flow to the firm (FCFF)²	1,150,855)	1,274,970)	1,134,788)	1,048,592)	828,503)
Valuation Ratio
EV/FCFF³	61.26	63.83	44.54	35.05	44.13
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	25.76	20.26	16.99	24.76	17.90
Adobe Inc.	21.98	37.75	20.82	33.61	40.43
CrowdStrike Holdings Inc.	81.46	38.65	96.35	141.44	807.14
International Business Machines Corp.	20.11	15.27	16.47	13.10	9.35
Intuit Inc.	36.79	31.28	32.85	48.64	37.90
Microsoft Corp.	49.30	41.75	32.31	38.37	33.99
Oracle Corp.	31.24	35.83	31.60	16.36	14.99
Palantir Technologies Inc.	251.61	69.13	82.97	66.45	—
Palo Alto Networks Inc.	34.69	28.15	29.30	32.74	26.50
Salesforce Inc.	29.95	28.41	35.97	44.91	39.63
ServiceNow Inc.	60.21	56.55	40.86	60.13	83.74
Synopsys Inc.	56.23	55.87	30.82	38.59	42.88
Workday Inc.	32.57	33.40	45.74	57.52	72.44
EV/FCFF, Sector
Software & Services	41.22	35.76	29.84	32.54	28.11
EV/FCFF, Industry
Information Technology	40.33	34.40	26.74	27.56	23.97

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 70,504,589 ÷ 1,150,855 = 61.26

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Cadence Design Systems Inc. EV/FCFF ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Cadence Design Systems Inc. (NASDAQ:CDNS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical