Stock Analysis on Net

Cadence Design Systems Inc. (NASDAQ:CDNS)

Enterprise Value (EV) 

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Current Enterprise Value (EV)

Cadence Design Systems Inc., current enterprise value calculation

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Current share price (P) $326.81
No. shares of common stock outstanding 273,042,000
US$ in thousands
Common equity (market value)1 89,232,856
Add: Preferred stock, $0.01 par value; none issued or outstanding (per books)
Total equity 89,232,856
Add: Revolving credit facility (per books)
Add: Current portion of long-term debt (per books)
Add: Long-term debt, excluding current portion (per books) 2,476,183
Total equity and debt 91,709,039
Less: Cash and cash equivalents 2,644,030
Less: Short-term investments 140,625
Enterprise value (EV) 88,924,384

Based on: 10-K (reporting date: 2024-12-31).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 326.81 × 273,042,000


Historical Enterprise Value (EV)

Cadence Design Systems Inc., EV calculation

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Share price1, 2 $258.34 $300.74 $185.70 $135.21 $133.16
No. shares of common stock outstanding1 274,108,000 272,239,000 272,940,000 277,336,000 278,974,000
US$ in thousands
Common equity (market value)3 70,813,061 81,873,157 50,684,958 37,498,601 37,148,178
Add: Preferred stock, $0.01 par value; none issued or outstanding (book value)
Total equity 70,813,061 81,873,157 50,684,958 37,498,601 37,148,178
Add: Revolving credit facility (book value) 100,000
Add: Current portion of long-term debt (book value) 349,285
Add: Long-term debt, excluding current portion (book value) 2,476,183 299,771 648,078 347,588 346,793
Total equity and debt 73,289,244 82,522,213 51,433,036 37,846,189 37,494,971
Less: Cash and cash equivalents 2,644,030 1,008,152 882,325 1,088,940 928,432
Less: Short-term investments 140,625 130,359 4,490 5,956 4,452
Enterprise value (EV) 70,504,589 81,383,702 50,546,221 36,751,293 36,562,087

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).

1 Data adjusted for splits and stock dividends.

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

3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 258.34 × 274,108,000


Equity Trends
The common equity (market value) and total equity demonstrate a consistent increase from 2020 through 2023, rising from approximately $37.1 billion to about $81.9 billion. This growth indicates a strengthening equity base over the initial four years. However, in 2024, there is a noticeable decline to roughly $70.8 billion, suggesting a reduction in equity value compared to the previous year.
Total Equity and Debt
The combined total of equity and debt follows a similar upward trajectory from 2020 to 2023, increasing from around $37.5 billion to $82.5 billion. This rise correlates with the growth seen in equity components, implying increased capitalization and financing activities. The year 2024 reflects a decrease to approximately $73.3 billion, aligning with the reduction observed in equity and indicating an overall contraction in capital structure size.
Enterprise Value (EV)
Enterprise value trends closely mirror equity and debt figures, growing steadily from $36.6 billion in 2020 to $81.4 billion in 2023. The subsequent year sees a decline to about $70.5 billion, suggesting a downturn in market valuation or changes in the company’s debt and cash position. This pattern supports the observed contraction in the company's capital market metrics in the latest fiscal year.
Overall Insights
The data convey a strong growth phase from 2020 through 2023, with significant increases in equity, total capital, and enterprise value. The uniformity across these financial metrics suggests effective capital management and investor confidence during this period. The reversal in 2024 signals potential market or operational challenges, warranting further investigation into underlying causes such as market conditions, earnings performance, or strategic corporate decisions.