Question 1

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

Accepted Answer

Cadence Design Systems (CDNS) P/E ratio is 78.8× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

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

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Cadence Design Systems specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

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

Accepted Answer

Cadence Design Systems's P/E ratio of 78.8× is above its own 5-year average of 68.5× and above the sector median of 29.4×. That places the current reading at the 73th 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/E ratio range?

Accepted Answer

In the available daily series, Cadence Design Systems (CDNS) P/E ratio has ranged from a low of 7.9× in 2013 to a high of 870.1× in 2004. The 5-year average is 68.5× and the 5-year median is 68.3×.

Question 7

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

Accepted Answer

Cadence Design Systems (CDNS) P/E ratio at the end of 2025 was 76.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$1.11B	76.4×	-1.1×	Dec 31, 2025
2024	$81.7B	$1.06B	77.4×	+7.1×	Dec 31, 2024
2023	$73.3B	$1.04B	70.4×	+19.4×	Dec 31, 2023
2022	$43.3B	$849M	51.0×	-22.1×	Dec 31, 2022
2021	$50.9B	$696M	73.1×	+9.8×	Dec 31, 2021
2020	$37.4B	$591M	63.3×	+44.1×	Dec 31, 2020
2019	$19B	$989M	19.2×	-15.3×	Dec 31, 2019
2018	$11.9B	$346M	34.4×	-21.6×	Dec 31, 2018
2017	$11.4B	$204M	56.0×	+22.1×	Dec 31, 2017
2016	$6.87B	$203M	33.8×	+9.3×	Dec 31, 2016
2015	$6.19B	$252M	24.5×	-9.4×	Dec 31, 2015
2014	$5.39B	$159M	33.9×	+10.0×	Dec 31, 2014
2013	$3.93B	$164M	23.9×	+15.5×	Dec 31, 2013
2012	$3.69B	$440M	8.4×	-29.9×	Dec 31, 2012
2011	$2.77B	$72.2M	38.3×	+21.4×	Dec 31, 2011
2010	$2.15B	$127M	17.0×	—	Dec 31, 2010
2009	$1.56B	-$150M	—	—	Dec 31, 2009
2008	$911M	-$1.82B	—	—	Dec 31, 2008
2007	$4.95B	$296M	16.7×	-21.9×	Dec 31, 2007
2006	$5.51B	$143M	38.6×	-70.3×	Dec 31, 2006
2005	$5.38B	$49.3M	108.9×	+52.6×	Dec 31, 2005
2004	$4.2B	$74.5M	56.4×	—	Dec 31, 2004
2003	$5.42B	-$17.6M	—	—	Dec 31, 2003
2002	$3.18B	$71.9M	44.3×	—	Dec 31, 2002


Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
First Solar (FSLR)	12.7×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×
IBM (IBM)	0.0×

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

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

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

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

Cadence Design Systems P/E Ratio by Year

Cadence Design Systems P/E Ratio 2025: 76.4×

Cadence Design Systems P/E Ratio 2024: 77.4×

Cadence Design Systems P/E Ratio 2023: 70.4×

Cadence Design Systems P/E Ratio 2022: 51.0×

Cadence Design Systems P/E Ratio 2021: 73.1×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Cadence Design Systems (CDNS) Key Financials