Enterprise Value (EV)
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Current Enterprise Value (EV)
Cadence Design Systems Inc., current enterprise value calculation
| Current share price (P) | |
| No. shares of common stock outstanding | |
| US$ in thousands | |
| Common equity (market value)1 | |
| Add: Preferred stock, $0.01 par value; none issued or outstanding (per books) | |
| Total equity | |
| Add: Revolving credit facility (per books) | |
| Add: Current portion of long-term debt (per books) | |
| Add: Long-term debt, excluding current portion (per books) | |
| Total equity and debt | |
| Less: Cash and cash equivalents | |
| Less: Short-term investments | |
| Enterprise value (EV) | |
Based on: 10-K (reporting date: 2025-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= ×
Historical Enterprise Value (EV)
Cadence Design Systems Inc., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Cadence Design Systems Inc. Annual Report.
3 2025 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= ×
The enterprise value (EV) exhibited a generally increasing trend between 2021 and 2025, although with a notable fluctuation in 2024. A close relationship between common equity (market value), total equity, and enterprise value is apparent throughout the period.
- Overall Trend
- Enterprise value increased from US$36.75 billion in 2021 to US$80.19 billion in 2025. The most substantial increase occurred between 2022 and 2023, rising from US$50.55 billion to US$81.38 billion. A decrease was observed in 2024, with EV falling to US$70.50 billion, before recovering to US$80.19 billion in 2025.
- Relationship to Equity Components
- Throughout the observed period, the enterprise value closely tracked both total equity and common equity (market value). This suggests that changes in investor perception of the company’s equity, and the company’s equity position, are primary drivers of changes in enterprise value. The values for these three items are identical in each year, indicating a consistent relationship.
- Total Equity and Debt
- Total equity and debt also increased over the period, moving from US$37.85 billion in 2021 to US$83.35 billion in 2025. However, the enterprise value consistently remained below the total equity and debt figure, indicating that the market value of the company’s equity and the value of its debt, combined, exceeded the enterprise value. This difference is likely attributable to the inclusion of non-operating assets and cash in the enterprise value calculation.
The decrease in enterprise value in 2024 warrants further investigation. While common equity also decreased in that year, the magnitude of the decrease in enterprise value suggests potential shifts in market sentiment or changes in the company’s debt structure that impacted its overall valuation.