Question 1

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

Accepted Answer

Cadence Design Systems (CDNS) P/B ratio is 14.1× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

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

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For Cadence Design Systems specifically, the relevant sector benchmark is the current sector median of 5.6×.

Question 5

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

Accepted Answer

Cadence Design Systems's P/B ratio of 14.1× is below its own 5-year average of 17.5× and above the sector median of 5.6×. That places the current reading at the 2th 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/B ratio range?

Accepted Answer

In the available daily series, Cadence Design Systems (CDNS) P/B ratio has ranged from a low of 1.0× in 2008 to a high of 27.3× in 2024. The 5-year average is 17.5× and the 5-year median is 16.5×.

Question 7

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

Accepted Answer

Cadence Design Systems (CDNS) P/B ratio at the end of 2025 was 15.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$5.47B	15.5×	-2.0×	Dec 31, 2025
2024	$81.7B	$4.67B	17.5×	-4.0×	Dec 31, 2024
2023	$73.3B	$3.4B	21.5×	+5.7×	Dec 31, 2023
2022	$43.3B	$2.75B	15.8×	-2.8×	Dec 31, 2022
2021	$50.9B	$2.74B	18.6×	+3.6×	Dec 31, 2021
2020	$37.4B	$2.49B	15.0×	+6.0×	Dec 31, 2020
2019	$19B	$2.1B	9.0×	-0.2×	Dec 31, 2019
2018	$11.9B	$1.29B	9.2×	-2.3×	Dec 31, 2018
2017	$11.4B	$989M	11.5×	+2.3×	Dec 31, 2017
2016	$6.87B	$742M	9.3×	+4.8×	Dec 31, 2016
2015	$6.19B	$1.38B	4.5×	+0.5×	Dec 31, 2015
2014	$5.39B	$1.33B	4.0×	+0.6×	Dec 31, 2014
2013	$3.93B	$1.16B	3.4×	-0.6×	Dec 31, 2013
2012	$3.69B	$915M	4.0×	-2.7×	Dec 31, 2012
2011	$2.77B	$411M	6.7×	-1.0×	Dec 31, 2011
2010	$2.15B	$277M	7.8×	-6.7×	Dec 31, 2010
2009	$1.56B	$108M	14.4×	+9.5×	Dec 31, 2009
2008	$911M	$187M	4.9×	+2.5×	Dec 31, 2008
2007	$4.95B	$2.08B	2.4×	-0.9×	Dec 31, 2007
2006	$5.51B	$1.7B	3.2×	+0.3×	Dec 31, 2006
2005	$5.38B	$1.84B	2.9×	+0.4×	Dec 31, 2005
2004	$4.2B	$1.7B	2.5×	-1.0×	Dec 31, 2004
2003	$5.42B	$1.57B	3.4×	+1.5×	Dec 31, 2003
2002	$3.18B	$1.64B	1.9×	—	Dec 31, 2002


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IREN (IREN)	2.8×
Trimble (TRMB)	2.7×
Twilio (TWLO)	2.5×
Amkor Technology (AMKR)	2.5×
First Solar (FSLR)	2.1×
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IonQ (IONQ)	2.1×
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Okta (OKTA)	1.9×
Super Micro Computer (SMCI)	1.8×
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Sunrun (RUN)	1.0×
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IBM (IBM)	0.0×

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

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

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

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

Cadence Design Systems P/B Ratio by Year

Cadence Design Systems P/B Ratio 2025: 15.5×

Cadence Design Systems P/B Ratio 2024: 17.5×

Cadence Design Systems P/B Ratio 2023: 21.5×

Cadence Design Systems P/B Ratio 2022: 15.8×

Cadence Design Systems P/B Ratio 2021: 18.6×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

Cadence Design Systems (CDNS) Key Financials