Question 1

What is Cadence Design Systems's P/FCF ratio?

Accepted Answer

Cadence Design Systems (CDNS) P/FCF ratio is 64.5× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Cadence Design Systems?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Cadence Design Systems specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Cadence Design Systems's P/FCF ratio high or low?

Accepted Answer

Cadence Design Systems's P/FCF ratio of 64.5× is above its own 5-year average of 54.8× and above the sector median of 21.8×. That places the current reading at the 75th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Cadence Design Systems's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Cadence Design Systems (CDNS) P/FCF ratio has ranged from a low of 9.0× in 2003 to a high of 209.3× in 2009. The 5-year average is 54.8× and the 5-year median is 52.8×.

Question 7

What was Cadence Design Systems's P/FCF ratio in 2025?

Accepted Answer

Cadence Design Systems (CDNS) P/FCF ratio at the end of 2025 was 53.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Cadence Design Systems's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$84.7B	$1.59B	53.4×	-19.8×	Dec 31, 2025
2024	$81.7B	$1.12B	73.1×	+14.3×	Dec 31, 2024
2023	$73.3B	$1.25B	58.8×	+20.0×	Dec 31, 2023
2022	$43.3B	$1.12B	38.8×	-10.4×	Dec 31, 2022
2021	$50.9B	$1.03B	49.2×	+3.1×	Dec 31, 2021
2020	$37.4B	$810M	46.1×	+17.2×	Dec 31, 2020
2019	$19B	$655M	28.9×	+7.0×	Dec 31, 2019
2018	$11.9B	$543M	21.9×	-5.8×	Dec 31, 2018
2017	$11.4B	$413M	27.7×	+10.1×	Dec 31, 2017
2016	$6.87B	$391M	17.6×	-1.0×	Dec 31, 2016
2015	$6.19B	$333M	18.6×	-0.9×	Dec 31, 2015
2014	$5.39B	$277M	19.5×	+7.3×	Dec 31, 2014
2013	$3.93B	$323M	12.2×	-1.0×	Dec 31, 2013
2012	$3.69B	$280M	13.2×	-0.1×	Dec 31, 2012
2011	$2.77B	$209M	13.2×	-0.0×	Dec 31, 2011
2010	$2.15B	$162M	13.3×	—	Dec 31, 2010
2009	$1.56B	-$16.4M	—	—	Dec 31, 2009
2008	$911M	-$29.4M	—	—	Dec 31, 2008
2007	$4.95B	$319M	15.5×	-0.4×	Dec 31, 2007
2006	$5.51B	$345M	16.0×	+0.8×	Dec 31, 2006
2005	$5.38B	$355M	15.2×	+1.7×	Dec 31, 2005
2004	$4.2B	$311M	13.5×	-57.9×	Dec 31, 2004
2003	$5.42B	$75.8M	71.4×	+57.1×	Dec 31, 2003
2002	$3.18B	$222M	14.3×	—	Dec 31, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Cadence Design Systems (CDNS) 2002-2026

P/FCF Ratio daily chart for Cadence Design Systems (CDNS)

Historical P/FCF Ratio for Cadence Design Systems (CDNS) from 2002 to 2025

About P/FCF Ratio at Cadence Design Systems (CDNS)

Cadence Design Systems P/FCF Ratio by Year

Cadence Design Systems P/FCF Ratio 2025: 53.4×

Cadence Design Systems P/FCF Ratio 2024: 73.1×

Cadence Design Systems P/FCF Ratio 2023: 58.8×

Cadence Design Systems P/FCF Ratio 2022: 38.8×

Cadence Design Systems P/FCF Ratio 2021: 49.2×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Cadence Design Systems (CDNS) Key Financials