Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Cadence Design Systems Inc., P/E, 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-earnings (P/E) ratio for the observed period exhibits considerable fluctuation. Initially, the ratio is high, decreasing significantly over the first few years, then experiencing periods of increase and decrease before rising substantially in the later years of the observation window.

Early Period (2006-2009)
The P/E ratio begins at a high of 103.88 and declines rapidly to 10.43 by 2008. This decrease coincides with a period of decreasing share price and, notably, a negative earnings per share (EPS) in 2009. The absence of a P/E ratio calculation for 2009 is consistent with the negative EPS value, as the ratio is undefined in such cases.
Recovery and Fluctuations (2010-2014)
From 2010 to 2014, the P/E ratio demonstrates volatility. It recovers to 20.39 in 2010, then increases to 44.80 in 2012, before falling again to 9.11 in 2013. This period is characterized by fluctuating EPS values, contributing to the P/E ratio’s instability. The ratio then rises to 26.30 and 34.03 in 2014.
Moderate Growth (2015-2019)
The P/E ratio remains relatively stable between 25.14 and 55.67 during this period. A peak of 55.67 is observed in 2017, followed by a decrease to 46.59 in 2018 and 20.22 in 2019. EPS generally increases during this time, but not consistently enough to create a strong directional trend in the P/E ratio.
Significant Increase (2020-2024)
A substantial increase in the P/E ratio is observed from 2020 onwards. The ratio rises from 20.22 to 62.89 in 2020, then to 53.88, 59.70, 78.64, 67.09, and finally 72.92 in 2024. This increase is largely driven by a significant rise in EPS, particularly in 2020, coupled with continued increases in share price. While the share price decreased in 2024, the P/E ratio remained elevated, indicating strong earnings growth.

Overall, the P/E ratio demonstrates a complex pattern influenced by both share price and EPS. The latter portion of the observed period is marked by a significant increase in the ratio, suggesting increasing investor confidence and/or expectations for future earnings growth.


Comparison to Competitors

Cadence Design Systems Inc., P/E, 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/E, 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).