Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

$24.99

Price to Book Value (P/BV)
since 2005

Microsoft Excel

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Calculation

Cadence Design Systems Inc., P/BV, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

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


The data reveals a fluctuating but generally upward trend in the share price over the period under review. Starting from a price of $18.08, the share price experienced a significant decline reaching a low of $3.97 in early 2009. Subsequently, a recovery phase commenced, with the share price progressively increasing to peak levels above $300 in early 2024, before a slight pullback to $258.34 by early 2025.

Book value per share (BVPS) exhibited considerable volatility, particularly around the financial crisis period in 2009 where it sharply dropped to $0.39 from preceding values above $6. Thereafter, BVPS gradually increased year-over-year, indicating an improvement in the company's net asset position. By early 2025, the BVPS reached $17.05, which is substantially higher than the starting value, evidencing long-term asset growth.

The price-to-book (P/BV) ratio experienced pronounced swings throughout the timeframe. Initially, it was moderate at 2.78 but spiked dramatically to over 10 during 2009, coinciding with the low book value, indicating an overvaluation relative to book value at that point. In subsequent years, the ratio moderated somewhat but generally trended higher, with values peaking around 24.05 in early 2024. This elevated P/BV ratio suggests that the share price growth outpaced the growth in book value, reflecting strong market confidence and possibly expectations of future earnings growth.

Share Price Trend
Started at $18.08, declined to a low of $3.97 in 2009, then steadily increased to a peak near $300 in early 2024, followed by a slight decrease in 2025.
Book Value Per Share (BVPS) Trend
Fluctuated significantly with a sharp drop in 2009; subsequently demonstrated a consistent upward trend reaching $17.05 in 2025.
Price-to-Book Value (P/BV) Ratio Trend
Initially moderate, spiked exceptionally in 2009, then maintained generally high levels with peaks above 20 in recent years, indicating heightened market valuation relative to book assets.

In summary, the analyzed period reflects substantial growth in share price and book value per share after the 2009 downturn, with the market consistently valuing the company at a premium over its book value. This pattern is indicative of investor optimism about the company's profitability and growth prospects, despite intermittent volatility during broader economic challenges.


Comparison to Competitors

Cadence Design Systems Inc., P/BV, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Software & Services)

Cadence Design Systems Inc., P/BV, long-term trends, comparison to sector (software & services)

Microsoft Excel

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), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Information Technology)

Cadence Design Systems Inc., P/BV, long-term trends, comparison to industry (information technology)

Microsoft Excel

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), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).