Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Cadence Design Systems Inc., current price multiples

Microsoft Excel
Cadence Design Systems Inc. Accenture PLC Adobe Inc. Autodesk Inc. CrowdStrike Holdings Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $299.63
No. shares of common stock outstanding 274,263,000
Growth rate (g) 27.31%
 
Earnings per share (EPS) $3.80
Next year expected EPS $4.83
Operating profit per share $4.56
Sales per share $14.91
Book value per share (BVPS) $12.41
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 78.93 30.46 40.52 72.43 969.48 25.91 60.94 35.24 50.01 49.02 74.76 121.64 66.70 49.92 55.25
Price to next year expected earnings 62.00 25.85 31.05 46.71 1,132.70 29.40 54.33 27.69 16.99 57.31 71.89 106.35 57.93 40.73 43.94
Price-earnings-growth (PEG) 2.89 1.71 1.33 1.32 5.01 1.29 0.26 18.71 8.46 4.40 2.21 2.15
Price to operating profit (P/OP) 65.68 23.06 33.07 58.17 20.72 49.74 28.38 34.09 184.75 61.70 276.32 64.63 40.03 46.46
Price to sales (P/S) 20.09 3.41 11.33 11.94 28.34 3.14 11.09 12.67 9.88 15.74 8.87 23.47 14.04 11.13 12.18
Price to book value (P/BV) 24.14 7.82 13.31 35.37 37.59 8.63 9.79 11.57 60.14 24.44 5.18 27.60 13.34 14.65 17.56

Based on: 10-K (reporting date: 2023-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Cadence Design Systems Inc., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Price to earnings (P/E) 78.64 59.70 53.88 62.89 20.22
Price to operating profit (P/OP) 65.43 47.21 48.13 57.54 40.67
Price to sales (P/S) 20.02 14.23 12.55 13.85 8.56
Price to book value (P/BV) 24.05 18.46 13.68 14.90 9.51

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Cadence Design Systems Inc. P/E ratio increased from 2021 to 2022 and from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Cadence Design Systems Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Cadence Design Systems Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Cadence Design Systems Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

Cadence Design Systems Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
No. shares of common stock outstanding1 272,239,000 272,940,000 277,336,000 278,974,000 280,168,000
Selected Financial Data (US$)
Net income (in thousands) 1,041,144 848,952 695,955 590,644 988,979
Earnings per share (EPS)2 3.82 3.11 2.51 2.12 3.53
Share price1, 3 300.74 185.70 135.21 133.16 71.39
Valuation Ratio
P/E ratio4 78.64 59.70 53.88 62.89 20.22
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 27.81 22.93 36.58 28.32 24.58
Adobe Inc. 49.64 33.15 48.90 41.69 57.17
Autodesk Inc. 51.99 82.51 47.53 152.72
CrowdStrike Holdings Inc.
International Business Machines Corp. 22.50 71.56 19.40 19.30 13.35
Intuit Inc. 64.61 57.31 75.17 49.52 48.17
Microsoft Corp. 33.96 28.34 35.14 35.04 26.86
Oracle Corp. 38.96 26.85 15.84 16.69 16.89
Palo Alto Networks Inc. 170.35
Salesforce Inc. 879.57 135.68 48.20 1,204.70 107.70
ServiceNow Inc. 90.80 284.28 487.70 978.47 106.89
Synopsys Inc. 70.08 51.76 73.37 55.92 39.55
P/E Ratio, Sector
Software & Services 39.01 33.75 36.39 36.61 27.87
P/E Ratio, Industry
Information Technology 35.72 27.05 29.26 31.09 22.67

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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,041,144,000 ÷ 272,239,000 = 3.82

3 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 300.74 ÷ 3.82 = 78.64

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Cadence Design Systems Inc. P/E ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Operating Profit (P/OP)

Cadence Design Systems Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
No. shares of common stock outstanding1 272,239,000 272,940,000 277,336,000 278,974,000 280,168,000
Selected Financial Data (US$)
Income from operations (in thousands) 1,251,225 1,073,686 779,089 645,552 491,796
Operating profit per share2 4.60 3.93 2.81 2.31 1.76
Share price1, 3 300.74 185.70 135.21 133.16 71.39
Valuation Ratio
P/OP ratio4 65.43 47.21 48.13 57.54 40.67
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 21.69 16.83 28.35 22.21 18.63
Adobe Inc. 40.52 25.85 40.64 51.75 51.63
Autodesk Inc. 43.26 66.40 91.28 95.51
CrowdStrike Holdings Inc.
International Business Machines Corp. 17.99 14.35 16.23 15.90 11.94
Intuit Inc. 49.04 46.05 62.00 41.56 40.45
Microsoft Corp. 27.76 24.72 30.79 29.30 24.54
Oracle Corp. 25.30 16.51 14.31 12.17 13.83
Palo Alto Networks Inc. 193.40
Salesforce Inc. 177.62 357.52 431.39 511.08 223.46
ServiceNow Inc. 206.26 260.26 436.46 583.07 1,590.30
Synopsys Inc. 67.90 43.85 75.64 59.90 40.48
P/OP Ratio, Sector
Software & Services 31.28 26.79 32.94 30.46 25.14
P/OP Ratio, Industry
Information Technology 30.04 22.84 26.04 26.62 19.84

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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 1,251,225,000 ÷ 272,239,000 = 4.60

3 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 300.74 ÷ 4.60 = 65.43

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Cadence Design Systems Inc. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to Sales (P/S)

Cadence Design Systems Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
No. shares of common stock outstanding1 272,239,000 272,940,000 277,336,000 278,974,000 280,168,000
Selected Financial Data (US$)
Revenue (in thousands) 4,089,986 3,561,718 2,988,244 2,682,891 2,336,319
Sales per share2 15.02 13.05 10.77 9.62 8.34
Share price1, 3 300.74 185.70 135.21 133.16 71.39
Valuation Ratio
P/S ratio4 20.02 14.23 12.55 13.85 8.56
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 2.98 2.56 4.28 3.26 2.72
Adobe Inc. 13.88 8.95 14.94 17.04 15.11
Autodesk Inc. 8.55 9.35 15.15 10.00 13.21
CrowdStrike Holdings Inc. 12.81 30.15 48.70 22.79
International Business Machines Corp. 2.73 1.94 1.94 1.47 1.63
Intuit Inc. 10.72 9.30 16.09 11.78 11.05
Microsoft Corp. 11.60 10.40 12.81 10.85 8.38
Oracle Corp. 6.63 4.25 5.38 4.33 4.74
Palo Alto Networks Inc. 10.87 9.62 10.72 6.66 7.06
Salesforce Inc. 5.84 7.40 9.24 8.88 9.00
ServiceNow Inc. 17.52 12.75 19.02 25.66 19.36
Synopsys Inc. 14.75 10.03 13.22 10.08 6.27
P/S Ratio, Sector
Software & Services 8.70 7.43 9.44 7.57 6.06
P/S Ratio, Industry
Information Technology 7.87 6.47 7.48 6.63 5.03

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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 4,089,986,000 ÷ 272,239,000 = 15.02

3 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 300.74 ÷ 15.02 = 20.02

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Cadence Design Systems Inc. P/S ratio increased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

Cadence Design Systems Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
No. shares of common stock outstanding1 272,239,000 272,940,000 277,336,000 278,974,000 280,168,000
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 3,404,271 2,745,113 2,740,675 2,493,018 2,102,894
Book value per share (BVPS)2 12.50 10.06 9.88 8.94 7.51
Share price1, 3 300.74 185.70 135.21 133.16 71.39
Valuation Ratio
P/BV ratio4 24.05 18.46 13.68 14.90 9.51
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 7.44 7.13 11.06 8.51 8.15
Adobe Inc. 16.31 11.22 15.94 16.53 16.03
Autodesk Inc. 37.37 48.29 59.48
CrowdStrike Holdings Inc. 19.61 42.67 48.91 14.78
International Business Machines Corp. 7.49 5.34 5.90 5.24 6.04
Intuit Inc. 8.92 7.20 15.71 17.71 20.00
Microsoft Corp. 11.92 12.38 15.16 13.11 10.30
Oracle Corp. 308.71 41.57 14.01 8.59
Palo Alto Networks Inc. 42.84 251.98 71.88 20.61 12.91
Salesforce Inc. 3.13 3.37 4.73 4.48 7.66
ServiceNow Inc. 20.60 18.36 30.36 40.91 31.48
Synopsys Inc. 14.02 9.24 10.50 7.57 5.16
P/BV Ratio, Sector
Software & Services 11.45 10.77 13.67 11.59 10.11
P/BV Ratio, Industry
Information Technology 11.35 10.37 12.38 10.90 8.28

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).

1 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 3,404,271,000 ÷ 272,239,000 = 12.50

3 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 300.74 ÷ 12.50 = 24.05

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Cadence Design Systems Inc. P/BV ratio increased from 2021 to 2022 and from 2022 to 2023.