Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Cadence Design Systems Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits notable volatility over the observed periods, beginning around the high 50s and low 60s in early 2021. It initially fluctuates moderately, dipping to approximately 53.88 by the end of 2021 before generally trending upward through 2023 with peaks reaching above 78. The ratio shows a tendency to rise sharply in recent quarters, culminating at nearly 100 in mid-2025, before decreasing slightly but remaining elevated near 87.6 by the last period observed. This indicates an increasing valuation relative to earnings, suggesting investor optimism or expectations of enhanced future profitability.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a somewhat similar pattern to the P/E ratio but with less pronounced peaks. It starts slightly above 50 in early 2021, declines to the mid-40s towards 2022, and stays relatively stable around the mid-40s to low 50s through most of 2022. Starting in late 2022 and continuing into 2023, the ratio climbs steadily, reaching a peak above 65. However, it then decreases below 55 in mid-2024 before rising again towards 71 in mid-2025. The fluctuations indicate varying market assessments relative to operating profits, with higher values suggesting a premium valuation during certain periods.
- Price to Sales (P/S) Ratio
- The P/S ratio reveals a general upward trend over the period. It begins at around 14 in early 2021 and exhibits modest fluctuations, but a clear rise begins in late 2022, where the ratio moves beyond 17 and reaches a peak above 20 at the end of 2023. Following that peak, the ratio decreases somewhat but remains elevated in the high teens through mid-2025. The sustained higher P/S ratio may reflect strong market confidence in the company’s revenue-generating ability, potentially anticipating continued sales growth or improved margins.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio starts near 16 in early 2021 and demonstrates a general increase despite some volatility. It experiences fluctuations but gradually climbs to a peak exceeding 24 towards the end of 2023. After this high point, it declines sharply to the mid-teens around mid-2024. Subsequently, the ratio oscillates between approximately 17 and 20 into mid-2025. The pattern suggests varying investor perceptions regarding the company’s net asset value, with the sharper decline after the 2023 peak indicating possible reassessment of equity value or market conditions.
Price to Earnings (P/E)
Cadence Design Systems Inc., historical P/E calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 272,201,000 | 272,490,000 | 273,042,000 | 274,108,000 | 274,263,000 | 273,820,000 | 272,134,000 | 272,239,000 | 272,062,000 | 271,790,000 | 272,684,000 | 272,940,000 | 274,316,000 | 273,870,000 | 275,759,000 | 277,336,000 | 277,141,000 | 276,780,000 | 278,265,000 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net income (in thousands) | 287,122) | 160,051) | 273,579) | 340,210) | 238,111) | 229,520) | 247,643) | 323,899) | 254,321) | 221,120) | 241,804) | 240,392) | 186,305) | 186,920) | 235,335) | 176,579) | 176,307) | 155,900) | 187,169) | ||||||
| Earnings per share (EPS)2 | 3.90 | 3.71 | 3.96 | 3.85 | 3.79 | 3.85 | 3.85 | 3.82 | 3.52 | 3.27 | 3.14 | 3.11 | 2.86 | 2.83 | 2.70 | 2.51 | 2.50 | 2.45 | 2.35 | ||||||
| Share price1, 3 | 341.43 | 371.03 | 297.74 | 258.34 | 290.00 | 266.34 | 277.66 | 300.74 | 239.92 | 241.27 | 212.98 | 185.70 | 160.22 | 167.66 | 151.10 | 135.21 | 167.37 | 144.97 | 144.23 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/E ratio4 | 87.60 | 99.91 | 75.17 | 67.09 | 76.54 | 69.10 | 72.17 | 78.64 | 68.16 | 73.71 | 67.89 | 59.70 | 55.98 | 59.24 | 56.00 | 53.88 | 66.92 | 59.14 | 61.38 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 22.37 | 24.53 | 30.76 | 31.07 | 27.59 | 30.87 | 31.14 | 27.81 | 27.07 | 24.73 | 23.64 | 22.93 | 27.30 | 31.69 | 40.88 | 36.58 | 32.02 | 31.11 | 31.97 | ||||||
| Adobe Inc. | 21.26 | 23.93 | 25.11 | 31.98 | 42.53 | 46.15 | 47.07 | 49.64 | 44.69 | 45.30 | 36.72 | 33.15 | 27.18 | 35.27 | 45.03 | 48.90 | 47.07 | 49.98 | 40.82 | ||||||
| AppLovin Corp. | 73.67 | 54.38 | 53.48 | 68.97 | 49.07 | 27.16 | 40.75 | 56.56 | 128.35 | 508.94 | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | 675.68 | 391.27 | 632.51 | 892.67 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 628.11 | 366.47 | 220.89 | 235.49 | 220.03 | 232.13 | 340.29 | 884.97 | — | — | — | — | — | 5,463.33 | 16,813.15 | — | — | — | — | ||||||
| International Business Machines Corp. | 33.69 | 41.60 | 38.94 | 39.68 | 29.62 | 20.87 | 18.66 | 22.50 | 19.07 | 63.16 | 62.36 | 71.56 | 95.23 | 20.78 | 22.19 | 19.40 | 23.26 | 23.99 | 23.63 | ||||||
| Intuit Inc. | 53.58 | 51.15 | 65.11 | 58.94 | 60.26 | 66.50 | 61.19 | 64.61 | 56.26 | 59.38 | 56.80 | 57.31 | 40.47 | 63.28 | 85.13 | 75.17 | 56.40 | 62.56 | 48.28 | ||||||
| Microsoft Corp. | 30.40 | 35.45 | 35.53 | 35.67 | 34.41 | 36.78 | 31.86 | 33.96 | 29.67 | 26.71 | 26.77 | 28.34 | 27.89 | 30.38 | 34.30 | 35.14 | 35.22 | 34.15 | 33.95 | ||||||
| Oracle Corp. | 33.25 | 42.77 | 39.36 | 37.63 | 32.94 | 27.34 | 32.03 | 38.96 | 27.11 | 24.69 | 35.29 | 26.85 | 27.46 | 26.70 | 17.45 | 15.84 | 15.15 | 17.19 | 17.88 | ||||||
| Palantir Technologies Inc. | 415.04 | 538.53 | 450.16 | 632.38 | 244.40 | 147.19 | 159.62 | 246.77 | 279.03 | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 97.64 | 105.57 | 47.73 | 42.42 | 41.23 | 37.18 | 127.17 | 170.35 | 290.26 | 1,656.49 | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 59.32 | 43.63 | 38.62 | 71.24 | 94.07 | 136.55 | 547.14 | 879.57 | 528.78 | 324.46 | 174.67 | 135.68 | 147.95 | 110.94 | 48.91 | 48.20 | 58.10 | 104.23 | — | ||||||
| ServiceNow Inc. | 112.31 | 124.75 | 109.38 | 146.40 | 147.50 | 148.98 | 77.25 | 90.80 | 71.21 | 80.21 | 231.71 | 284.28 | 417.74 | 479.20 | 452.04 | 487.70 | 620.23 | 681.34 | 654.66 | ||||||
| Synopsys Inc. | 56.20 | 33.17 | 34.48 | 33.69 | 55.30 | 63.08 | 62.39 | 70.08 | 62.65 | 67.52 | 57.28 | 51.76 | 53.76 | 46.52 | 48.45 | 73.37 | 64.13 | 45.71 | 56.52 | ||||||
| Workday Inc. | 43.12 | 44.76 | 37.68 | 50.53 | 934.29 | — | — | — | — | — | — | 1,957.29 | 2,418.34 | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
1 Data adjusted for splits and stock dividends.
2 Q3 2025 Calculation
EPS
= (Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024)
÷ No. shares of common stock outstanding
= (287,122,000 + 160,051,000 + 273,579,000 + 340,210,000)
÷ 272,201,000 = 3.90
3 Closing price as at the filing date of Cadence Design Systems Inc. Quarterly or Annual Report.
4 Q3 2025 Calculation
P/E ratio = Share price ÷ EPS
= 341.43 ÷ 3.90 = 87.60
5 Click competitor name to see calculations.
The financial data reveals several notable trends and patterns regarding the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed quarters.
- Share Price
- The share price exhibited an overall upward trajectory from April 2021 through June 2025 despite some fluctuations. Starting at $144.23 in April 2021, the price experienced moderate growth with periodic increases and decreases. Notably, after a dip to $135.21 by December 2021, it recovered and advanced steadily, reaching a peak of $371.03 in June 2025. The data indicates a generally positive investor sentiment leading to stronger market valuations over time, with significant acceleration in share price toward the later quarters.
- Earnings Per Share (EPS)
- EPS recorded consistent growth throughout the period, indicating the company’s improving profitability. EPS increased from $2.35 in April 2021 to $3.9 by June 2025. The quarter-to-quarter changes are relatively smooth, with occasional slight plateaus or minor declines, such as a small decrease from $3.96 in March 2025 to $3.71 in June 2025, before rebounding. The steady upward trend in EPS demonstrates the company’s capacity to grow earnings steadily over multiple years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio displayed greater volatility compared to the share price and EPS. Starting at 61.38 in April 2021, it fluctuated between approximately 53 and 79 for much of the timeline, then rose sharply toward the end, peaking at 99.91 in June 2025 before slightly decreasing to 87.6 in September 2025. This increased valuation multiple suggests rising investor expectations or increased market optimism about future growth potential relative to current earnings, especially in the final quarters. However, the elevated P/E ratios also reflect a relatively high market valuation compared to earnings, which could imply higher risk or speculation.
In summary, the company’s share price and earnings per share demonstrated steady growth, underpinning improved profitability and market confidence. The P/E ratio’s rise, particularly in later periods, indicates increased valuation multiples, which suggests growing investor expectations for future performance but also suggests more pronounced fluctuations in market sentiment.
Price to Operating Profit (P/OP)
Cadence Design Systems Inc., historical P/OP calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 272,201,000 | 272,490,000 | 273,042,000 | 274,108,000 | 274,263,000 | 273,820,000 | 272,134,000 | 272,239,000 | 272,062,000 | 271,790,000 | 272,684,000 | 272,940,000 | 274,316,000 | 273,870,000 | 275,759,000 | 277,336,000 | 277,141,000 | 276,780,000 | 278,265,000 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Income from operations (in thousands) | 425,390) | 241,797) | 361,520) | 456,875) | 350,056) | 293,876) | 249,956) | 336,528) | 292,906) | 299,328) | 322,463) | 211,117) | 260,752) | 282,888) | 318,929) | 195,680) | 194,034) | 185,438) | 203,937) | ||||||
| Operating profit per share2 | 5.46 | 5.18 | 5.36 | 4.93 | 4.49 | 4.28 | 4.33 | 4.60 | 4.14 | 4.02 | 3.95 | 3.93 | 3.86 | 3.62 | 3.24 | 2.81 | 2.77 | 2.69 | 2.55 | ||||||
| Share price1, 3 | 341.43 | 371.03 | 297.74 | 258.34 | 290.00 | 266.34 | 277.66 | 300.74 | 239.92 | 241.27 | 212.98 | 185.70 | 160.22 | 167.66 | 151.10 | 135.21 | 167.37 | 144.97 | 144.23 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/OP ratio4 | 62.56 | 71.69 | 55.59 | 52.42 | 64.64 | 62.16 | 64.10 | 65.43 | 57.98 | 59.96 | 53.91 | 47.21 | 41.53 | 46.31 | 46.60 | 48.13 | 60.37 | 53.96 | 56.52 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 16.89 | 18.52 | 23.34 | 23.52 | 20.96 | 24.43 | 24.40 | 21.69 | 21.16 | 18.24 | 17.50 | 16.83 | 19.98 | 23.62 | 31.03 | 28.35 | 25.67 | 24.96 | 25.29 | ||||||
| Adobe Inc. | 17.60 | 20.00 | 21.20 | 26.38 | 34.93 | 37.61 | 37.84 | 40.52 | 35.69 | 35.47 | 28.49 | 25.85 | 21.47 | 28.50 | 36.67 | 40.64 | 49.83 | 54.24 | 47.80 | ||||||
| AppLovin Corp. | 59.84 | 44.93 | 43.26 | 58.16 | 36.85 | 18.93 | 26.27 | 31.12 | 37.82 | 46.66 | 45.96 | — | 182.48 | 465.09 | 1,412.13 | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | — | 1,246.42 | 3,413.25 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | — | — | 1,225.87 | 797.11 | 582.08 | 786.59 | 2,905.50 | — | — | — | — | — | — | 3,299.68 | 8,476.50 | — | — | — | — | ||||||
| International Business Machines Corp. | 23.84 | 23.57 | 22.11 | 25.48 | 20.07 | 18.25 | 16.26 | 17.99 | 14.81 | 15.22 | 13.98 | 14.35 | 15.37 | 15.24 | 17.07 | 16.23 | 19.92 | 19.33 | 17.63 | ||||||
| Intuit Inc. | 41.91 | 40.68 | 52.88 | 48.11 | 48.74 | 53.07 | 46.91 | 49.04 | 41.32 | 43.34 | 43.50 | 46.05 | 33.22 | 53.54 | 71.64 | 62.00 | 46.48 | 52.54 | 39.99 | ||||||
| Microsoft Corp. | 24.05 | 27.94 | 28.44 | 28.73 | 28.04 | 30.20 | 26.16 | 27.76 | 24.15 | 21.76 | 22.07 | 24.72 | 24.66 | 27.51 | 31.35 | 30.79 | 30.72 | 29.13 | 28.71 | ||||||
| Oracle Corp. | 23.43 | 29.86 | 26.92 | 25.65 | 23.67 | 19.36 | 21.82 | 25.30 | 16.87 | 15.50 | 20.25 | 16.51 | 18.93 | 24.87 | 15.78 | 14.31 | 12.98 | 12.20 | 12.88 | ||||||
| Palantir Technologies Inc. | 535.05 | 721.72 | 633.43 | 941.61 | 318.98 | 203.93 | 242.24 | 431.61 | 1,130.92 | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 122.82 | 140.59 | 172.78 | 159.88 | 144.37 | 140.84 | 132.93 | 193.40 | 418.85 | 2,481.12 | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 50.24 | 37.14 | 33.49 | 58.80 | 65.09 | 79.66 | 145.83 | 177.62 | 295.77 | 2,318.80 | 818.64 | 357.52 | 280.57 | 236.57 | 228.93 | 431.39 | 914.43 | 3,682.10 | — | ||||||
| ServiceNow Inc. | 110.78 | 129.42 | 113.44 | 152.95 | 156.39 | 159.12 | 156.78 | 206.26 | 174.57 | 225.28 | 224.96 | 260.26 | 357.30 | 404.46 | 408.11 | 436.46 | 570.38 | 493.80 | 404.36 | ||||||
| Synopsys Inc. | 101.65 | 55.22 | 57.97 | 56.25 | 56.16 | 63.80 | 64.29 | 67.90 | 61.35 | 62.50 | 50.41 | 43.85 | 48.91 | 42.54 | 47.17 | 75.64 | 65.25 | 49.28 | 59.98 | ||||||
| Workday Inc. | 166.90 | 201.96 | 210.15 | 381.31 | 4,065.25 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
1 Data adjusted for splits and stock dividends.
2 Q3 2025 Calculation
Operating profit per share
= (Income from operationsQ3 2025
+ Income from operationsQ2 2025
+ Income from operationsQ1 2025
+ Income from operationsQ4 2024)
÷ No. shares of common stock outstanding
= (425,390,000 + 241,797,000 + 361,520,000 + 456,875,000)
÷ 272,201,000 = 5.46
3 Closing price as at the filing date of Cadence Design Systems Inc. Quarterly or Annual Report.
4 Q3 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 341.43 ÷ 5.46 = 62.56
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited overall growth across the observed periods, starting at $144.23 and reaching a peak of $371.03 before retracting slightly to $341.43 by the end of the timeline. Early periods showed moderate increases with some fluctuations, notably a dip in late 2021. The most substantial appreciation occurred from early 2023 onwards, culminating in the highest values during mid-2025.
- Operating Profit Per Share (OPPS)
- The operating profit per share demonstrated a consistent upward trajectory throughout the periods examined. The value began at $2.55 and steadily increased to $5.46 by the latest quarter, indicating improvement in operational efficiency or profitability on a per-share basis. Minor fluctuations were noted, but the general pattern reflects sustained growth.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio showed variability without a clear directional trend. Initial ratios were relatively high, then dipped to lower levels around mid-2022, suggesting improving valuation relative to operating profit. However, subsequent periods saw a rise in the ratio, peaking at 71.69, which may indicate growing investor expectations or share price appreciation outpacing operating profit growth. Toward the end, the ratio decreased slightly but remained elevated, reflecting continued market optimism or a premium valuation.
- Overall Insights
- The data reflects a company experiencing increasing profitability on a per-share basis, with corresponding strong growth in share price, especially in recent periods. The elevated and fluctuating price to operating profit ratio suggests that market valuation dynamics are influenced by factors beyond operating profit alone, possibly including growth expectations or external market conditions. Continuous OPPS improvement coupled with significant share price increases points to favorable operational performance that is recognized by the market, although the expanded ratio indicates investors may be pricing in further growth potential.
Price to Sales (P/S)
Cadence Design Systems Inc., historical P/S calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 272,201,000 | 272,490,000 | 273,042,000 | 274,108,000 | 274,263,000 | 273,820,000 | 272,134,000 | 272,239,000 | 272,062,000 | 271,790,000 | 272,684,000 | 272,940,000 | 274,316,000 | 273,870,000 | 275,759,000 | 277,336,000 | 277,141,000 | 276,780,000 | 278,265,000 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Revenue (in thousands) | 1,338,838) | 1,275,441) | 1,242,366) | 1,355,981) | 1,215,499) | 1,060,681) | 1,009,103) | 1,068,623) | 1,023,094) | 976,579) | 1,021,690) | 899,877) | 902,554) | 857,521) | 901,766) | 773,036) | 750,895) | 728,285) | 736,028) | ||||||
| Sales per share2 | 19.15 | 18.68 | 17.85 | 16.93 | 15.87 | 15.20 | 14.98 | 15.02 | 14.41 | 13.98 | 13.50 | 13.05 | 12.52 | 11.99 | 11.44 | 10.77 | 10.74 | 10.44 | 10.07 | ||||||
| Share price1, 3 | 341.43 | 371.03 | 297.74 | 258.34 | 290.00 | 266.34 | 277.66 | 300.74 | 239.92 | 241.27 | 212.98 | 185.70 | 160.22 | 167.66 | 151.10 | 135.21 | 167.37 | 144.97 | 144.23 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/S ratio4 | 17.83 | 19.87 | 16.68 | 15.26 | 18.27 | 17.52 | 18.53 | 20.02 | 16.65 | 17.25 | 15.77 | 14.23 | 12.80 | 13.99 | 13.21 | 12.55 | 15.59 | 13.88 | 14.33 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 2.60 | 2.80 | 3.51 | 3.48 | 2.98 | 3.36 | 3.32 | 2.98 | 3.05 | 2.72 | 2.67 | 2.56 | 3.04 | 3.57 | 4.72 | 4.28 | 3.86 | 3.72 | 3.75 | ||||||
| Adobe Inc. | 6.38 | 7.27 | 7.69 | 8.27 | 10.88 | 11.47 | 11.33 | 13.88 | 12.12 | 11.93 | 9.66 | 8.95 | 7.61 | 10.33 | 13.47 | 14.94 | 18.20 | 19.39 | 16.61 | ||||||
| AppLovin Corp. | 40.14 | 26.48 | 21.35 | 23.14 | 13.19 | 5.68 | 6.71 | 6.14 | 4.44 | 3.55 | 2.23 | 1.80 | 2.08 | 4.61 | 5.30 | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | 22.89 | 18.94 | 25.36 | 26.10 | 19.77 | 14.73 | 15.27 | 12.81 | 13.55 | 23.24 | 22.99 | 30.15 | 37.35 | 54.14 | 46.77 | 48.70 | 46.83 | 43.35 | 37.61 | ||||||
| Datadog Inc. | 20.88 | 15.14 | 12.92 | 16.12 | 16.67 | 15.81 | 17.37 | 20.19 | 16.72 | 14.86 | 13.74 | 14.64 | 14.59 | 26.18 | 29.04 | 49.25 | 65.77 | 53.51 | 35.53 | ||||||
| International Business Machines Corp. | 4.07 | 3.79 | 3.39 | 3.81 | 3.03 | 2.82 | 2.46 | 2.73 | 2.16 | 2.11 | 1.89 | 1.94 | 1.99 | 1.95 | 2.10 | 1.94 | 1.82 | 1.96 | 1.83 | ||||||
| Intuit Inc. | 10.22 | 9.05 | 11.46 | 10.72 | 11.71 | 12.20 | 10.73 | 10.72 | 8.95 | 8.44 | 8.01 | 9.30 | 7.87 | 12.04 | 17.26 | 16.09 | 13.50 | 14.16 | 12.12 | ||||||
| Microsoft Corp. | 10.88 | 12.56 | 12.65 | 12.82 | 12.54 | 13.34 | 11.25 | 11.60 | 9.86 | 8.83 | 9.20 | 10.40 | 10.50 | 11.70 | 13.21 | 12.81 | 12.33 | 11.43 | 10.96 | ||||||
| Oracle Corp. | 7.25 | 9.05 | 8.03 | 7.44 | 6.68 | 5.37 | 5.89 | 6.63 | 4.73 | 4.71 | 4.64 | 4.25 | 4.96 | 6.62 | 5.96 | 5.38 | 4.90 | 4.53 | 4.67 | ||||||
| Palantir Technologies Inc. | 116.68 | 119.47 | 82.47 | 102.00 | 44.01 | 24.02 | 20.42 | 23.27 | 19.34 | 17.93 | 10.19 | 9.34 | 7.98 | 11.62 | 9.27 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 13.62 | 15.45 | 15.74 | 13.62 | 12.95 | 11.25 | 10.83 | 10.87 | 9.63 | 9.23 | 8.70 | 9.62 | 9.22 | 9.68 | 11.48 | 10.72 | 8.85 | 9.71 | 7.64 | ||||||
| Salesforce Inc. | 9.47 | 6.74 | 5.91 | 8.45 | 7.18 | 6.52 | 6.44 | 5.84 | 4.85 | 5.93 | 6.27 | 7.40 | 10.30 | 11.09 | 9.72 | 9.24 | 10.19 | 12.73 | 8.72 | ||||||
| ServiceNow Inc. | 15.35 | 17.19 | 14.67 | 18.99 | 18.83 | 17.15 | 15.71 | 17.52 | 13.33 | 14.25 | 12.17 | 12.75 | 12.13 | 13.36 | 16.11 | 19.02 | 24.74 | 22.46 | 20.63 | ||||||
| Synopsys Inc. | 17.44 | 11.53 | 11.98 | 12.45 | 13.60 | 14.87 | 14.65 | 14.75 | 11.72 | 11.75 | 10.44 | 10.03 | 11.21 | 9.86 | 9.78 | 13.22 | 11.85 | 9.27 | 10.69 | ||||||
| Workday Inc. | 8.57 | 8.77 | 7.41 | 9.61 | 8.94 | 8.77 | 7.93 | 7.71 | 6.19 | 7.33 | 7.91 | 11.19 | 15.28 | 13.10 | 13.09 | 13.95 | 12.07 | 14.47 | 11.23 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
1 Data adjusted for splits and stock dividends.
2 Q3 2025 Calculation
Sales per share
= (RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024)
÷ No. shares of common stock outstanding
= (1,338,838,000 + 1,275,441,000 + 1,242,366,000 + 1,355,981,000)
÷ 272,201,000 = 19.15
3 Closing price as at the filing date of Cadence Design Systems Inc. Quarterly or Annual Report.
4 Q3 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 341.43 ÷ 19.15 = 17.83
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's market performance and sales metrics over the examined periods.
- Share Price Trends
- The share price exhibited a general upward trajectory from early 2021 through 2025, despite some fluctuations. Beginning at approximately $144 in the second quarter of 2021, the price rose steadily to reach a peak near $300 by the end of 2023. Subsequent quarters show some volatility with prices oscillating between mid-$260s and nearly $300. A significant rise occurred again in mid-2025 with the share price reaching above $370, before a slight decline to around $341 towards the last quarter observed. Overall, this trend suggests strong investor confidence and market valuation increases over the period.
- Sales Per Share
- Sales per share followed a consistent upward trend across all quarters. Starting from just over $10.00 in early 2021, sales per share rose gradually and steadily, reaching over $19.00 by the third quarter of 2025. The growth rate appears stable, with incremental increases each quarter, indicating sustained improvements in revenue generated on a per-share basis.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio displayed variability over the quarters analyzed, reflecting changes in the market's valuation relative to sales. Initially fluctuating between approximately 13.21 and 15.59 in 2021 and early 2022, the ratio climbed significantly to reach a high of 20.02 at the end of 2023. Following this peak, the ratio demonstrated periodic declines and rises, particularly notable was a dip below 16 in early to mid-2024 and a rebound close to 20 by mid-2025. This pattern suggests periods where the market valuation outpaced sales growth and others where sales growth caught up or outpaced valuation, highlighting shifting investor sentiment and market conditions.
In summary, the data suggests a robust performance in terms of share price appreciation and sales per share growth over the analyzed quarters. While the P/S ratio shows cyclical fluctuations, the overarching pattern points to a healthy market valuation environment relative to sales, with indications of strong investor interest and operational growth contributing to the company's financial performance.
Price to Book Value (P/BV)
Cadence Design Systems Inc., historical P/BV calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 272,201,000 | 272,490,000 | 273,042,000 | 274,108,000 | 274,263,000 | 273,820,000 | 272,134,000 | 272,239,000 | 272,062,000 | 271,790,000 | 272,684,000 | 272,940,000 | 274,316,000 | 273,870,000 | 275,759,000 | 277,336,000 | 277,141,000 | 276,780,000 | 278,265,000 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | 5,199,002) | 5,006,538) | 4,776,257) | 4,673,578) | 4,563,338) | 4,260,892) | 3,567,596) | 3,404,271) | 3,113,894) | 2,908,455) | 2,940,876) | 2,745,113) | 2,708,128) | 2,625,229) | 2,760,183) | 2,740,675) | 2,631,262) | 2,516,743) | 2,542,432) | ||||||
| Book value per share (BVPS)2 | 19.10 | 18.37 | 17.49 | 17.05 | 16.64 | 15.56 | 13.11 | 12.50 | 11.45 | 10.70 | 10.78 | 10.06 | 9.87 | 9.59 | 10.01 | 9.88 | 9.49 | 9.09 | 9.14 | ||||||
| Share price1, 3 | 341.43 | 371.03 | 297.74 | 258.34 | 290.00 | 266.34 | 277.66 | 300.74 | 239.92 | 241.27 | 212.98 | 185.70 | 160.22 | 167.66 | 151.10 | 135.21 | 167.37 | 144.97 | 144.23 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/BV ratio4 | 17.88 | 20.19 | 17.02 | 15.15 | 17.43 | 17.12 | 21.18 | 24.05 | 20.96 | 22.55 | 19.75 | 18.46 | 16.23 | 17.49 | 15.10 | 13.68 | 17.63 | 15.94 | 15.79 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 5.82 | 6.44 | 7.98 | 7.98 | 6.92 | 8.00 | 8.03 | 7.44 | 7.65 | 7.22 | 7.26 | 7.13 | 8.46 | 9.85 | 12.45 | 11.06 | 9.57 | 9.27 | 9.38 | ||||||
| Adobe Inc. | 12.56 | 14.36 | 12.95 | 12.61 | 15.67 | 15.79 | 14.62 | 16.31 | 14.51 | 14.82 | 12.24 | 11.22 | 9.10 | 12.33 | 15.78 | 15.94 | 19.07 | 20.14 | 16.77 | ||||||
| AppLovin Corp. | 141.48 | 113.19 | 178.46 | 99.97 | 60.29 | 27.56 | 32.03 | 16.06 | 12.29 | 6.74 | 3.42 | 2.67 | 3.22 | 7.06 | 7.41 | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | 28.00 | 23.34 | 32.84 | 34.61 | 27.75 | 21.18 | 23.27 | 19.61 | 20.98 | 34.78 | 34.12 | 42.67 | 50.64 | 68.13 | 55.02 | 48.91 | 43.84 | 35.86 | 28.17 | ||||||
| Datadog Inc. | 19.50 | 14.29 | 12.55 | 15.94 | 16.08 | 15.73 | 17.81 | 21.22 | 18.59 | 17.10 | 16.30 | 17.39 | 17.33 | 29.42 | 31.03 | 48.66 | 60.46 | 44.80 | 28.33 | ||||||
| International Business Machines Corp. | 9.55 | 8.82 | 7.93 | 8.75 | 7.75 | 7.32 | 6.56 | 7.49 | 5.72 | 5.76 | 5.29 | 5.34 | 5.99 | 5.98 | 6.43 | 5.90 | 4.99 | 5.83 | 5.93 | ||||||
| Intuit Inc. | 9.23 | 8.65 | 10.48 | 9.47 | 9.87 | 10.89 | 9.31 | 8.92 | 7.16 | 7.29 | 6.64 | 7.20 | 5.97 | 8.81 | 18.30 | 15.71 | 12.05 | 12.32 | 18.11 | ||||||
| Microsoft Corp. | 9.13 | 10.86 | 11.18 | 11.71 | 11.72 | 12.74 | 11.13 | 11.92 | 10.52 | 9.84 | 10.77 | 12.38 | 12.40 | 13.52 | 15.32 | 15.16 | 14.67 | 13.45 | 13.07 | ||||||
| Oracle Corp. | 24.17 | 36.17 | 39.94 | 45.25 | 62.34 | 71.68 | 126.71 | 308.71 | — | — | — | — | — | — | — | 41.57 | 21.84 | 22.54 | 19.31 | ||||||
| Palantir Technologies Inc. | 68.98 | 69.33 | 47.36 | 58.42 | 25.89 | 14.70 | 12.62 | 14.90 | 12.89 | 12.41 | 7.43 | 6.94 | 6.12 | 8.63 | 6.46 | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 16.72 | 20.77 | 22.07 | 21.15 | 22.59 | 19.43 | 35.97 | 42.84 | 50.71 | 77.94 | 99.68 | 252.00 | 141.27 | 399.29 | 100.84 | 71.88 | 35.40 | 35.42 | 36.65 | ||||||
| Salesforce Inc. | 6.02 | 4.26 | 3.54 | 4.94 | 4.20 | 3.71 | 3.61 | 3.13 | 2.48 | 2.89 | 2.98 | 3.37 | 4.51 | 4.70 | 5.10 | 4.73 | 5.13 | 6.42 | 4.60 | ||||||
| ServiceNow Inc. | 17.20 | 18.95 | 16.59 | 21.71 | 21.21 | 19.70 | 18.37 | 20.60 | 15.73 | 16.49 | 16.55 | 18.36 | 18.56 | 21.02 | 25.22 | 30.36 | 38.72 | 35.47 | 32.82 | ||||||
| Synopsys Inc. | 4.07 | 7.24 | 7.82 | 8.48 | 10.75 | 12.58 | 13.16 | 14.02 | 10.87 | 10.66 | 9.58 | 9.24 | 9.90 | 8.43 | 8.17 | 10.50 | 9.38 | 7.26 | 8.37 | ||||||
| Workday Inc. | 8.10 | 8.27 | 6.87 | 8.63 | 9.42 | 9.39 | 8.63 | 8.58 | 6.81 | 8.11 | 8.93 | 12.68 | 17.74 | 15.82 | 17.19 | 18.38 | 16.33 | 20.36 | 16.49 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
1 Data adjusted for splits and stock dividends.
2 Q3 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 5,199,002,000 ÷ 272,201,000 = 19.10
3 Closing price as at the filing date of Cadence Design Systems Inc. Quarterly or Annual Report.
4 Q3 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 341.43 ÷ 19.10 = 17.88
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general upward trend over the analyzed periods, beginning at $144.23 and reaching a peak of $371.03 before slightly retreating to $341.43 by the last period. Notable increases occurred between December 2022 and June 2023, and again from March 2025 to June 2025, indicating periods of strong market confidence or positive developments. The share price showed some volatility, including a decline after the first quarter of 2024, reflecting short-term market adjustments or changing investor sentiment.
- Book Value Per Share (BVPS)
- Book value per share steadily increased throughout the periods analyzed, starting from $9.14 and growing consistently to $19.10. This steady rise suggests ongoing accumulation of equity, retained earnings, or asset appreciation, reflecting positive internal growth and strengthening of the company's balance sheet over time.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio demonstrated notable fluctuations despite the gradual rise in book value per share. Initially around 15.79, the ratio peaked at 24.05 in December 2023, coinciding with strong share price appreciation relative to book value. Subsequently, the ratio declined to a lower point in June 2024 before experiencing variability, ending at 17.88 in the latest period. These variations indicate changing market valuation sentiment relative to the company's book value, suggesting periods of investor optimism and caution that resulted in fluctuating premium over the intrinsic book value.
- Overall Analysis
- The company’s equity base, as indicated by book value per share, shows consistent improvement, reflecting strong financial fundamentals. The share price growth, albeit volatile, indicates generally positive market perception with intermittent corrections. The P/BV ratio’s variability illustrates shifts in how the market values the company relative to its book equity, which may be influenced by external market conditions, earnings expectations, or sector trends. Together, these metrics reflect a company with improving intrinsic value and dynamic investor sentiment over the analyzed quarters.