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: 2025-12-31), 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 price-to-book value (P/BV) ratio for the analyzed period exhibits considerable fluctuation, generally trending upwards with notable peaks and valleys. Initial values indicate a relatively stable P/BV, followed by a period of significant volatility and then a more sustained increase in later years.

Initial Period (2006-2008)
The P/BV ratio began at 2.78 and increased to 3.45 before declining sharply to 1.49. This initial decline suggests a potential decrease in investor confidence relative to the company’s book value, or a possible market correction. The share price also experienced a decline during this period, contributing to the lower ratio.
Volatility and Recovery (2009-2012)
A dramatic spike to 10.30 occurred in 2009, coinciding with a substantial decrease in book value per share. This suggests a significant disconnect between market valuation and net asset value. The ratio then decreased over the subsequent years, settling at 7.87 by 2012, as book value per share began to recover. This period demonstrates a high degree of market sensitivity to changes in book value.
Moderate Fluctuations (2013-2017)
From 2013 to 2017, the P/BV ratio exhibited more moderate fluctuations, ranging from 3.74 to 11.10. While volatility remained, the ratio generally trended upwards, indicating increasing investor confidence. The share price and book value per share both showed growth during this timeframe, contributing to the overall increase.
Sustained Increase (2018-2023)
The period from 2018 to 2023 witnessed a sustained increase in the P/BV ratio, rising from 11.49 to a peak of 24.05 in 2023. This increase was driven by a combination of substantial growth in share price and a consistent, though less dramatic, increase in book value per share. The ratio reached its highest point in the analyzed period in 2023.
Recent Shift (2024-2026)
A decrease to 15.15 occurred in 2024, followed by a slight increase to 14.77 in 2025, and then a further increase to 14.77 in 2026. This recent shift suggests a potential stabilization or correction after the significant growth experienced in prior years. While the ratio remains elevated compared to earlier periods, the recent trend indicates a possible moderation in investor enthusiasm.

Overall, the P/BV ratio demonstrates a dynamic relationship with both share price and book value per share. The observed fluctuations suggest that market sentiment and investor expectations play a significant role in the company’s valuation.


Comparison to Competitors

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

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 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)


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: 2025-12-31), 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).