Explain this page
Arphra AIPlain-English read on Cadence Design Systems, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $81.49B | $84.81B | — | — | — | — |
| Enterprise value | — | — | — | $81.43B | $84.29B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 17.54 | 15.91 | — | — | — | — |
| EV / FCF | — | — | — | 72.83 | 53.12 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +1.30% | +1.31% | — | — | — | — |
| Free cash flow yield | — | — | — | +1.37% | +1.87% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +89.73% | +89.57% | +89.36% | +86.05% | +86.36% | +89.66% | +89.08% | +84.67% | +86.52% |
| Operating margin | +26.07% | +30.15% | +30.59% | +29.10% | +31.15% | +30.83% | +29.82% | +29.40% | +29.96% |
| EBITDA margin | +30.66% | +33.80% | +35.79% | +35.91% | +35.35% | +35.30% | +35.49% | +36.17% | +36.37% |
| EBIT margin | +26.28% | +29.99% | +32.23% | +31.71% | +30.94% | +31.75% | +31.22% | +30.75% | +32.33% |
| Pre-tax margin | +25.72% | +29.35% | +31.34% | +30.07% | +28.74% | +30.31% | +30.90% | +30.00% | +29.26% |
| Net margin | +23.29% | +23.84% | +25.46% | +22.74% | +20.94% | +23.41% | +23.49% | +23.47% | +23.43% |
| Cost structure | |||||||||
| Cost of revenue / sales | +10.27% | +10.43% | +10.64% | +13.95% | +13.64% | +12.60% | +12.49% | +12.95% | +12.37% |
| R&D intensity | +37.96% | +35.14% | +35.25% | +33.38% | +33.39% | +34.03% | +33.60% | +33.83% | +34.86% |
| SG&A intensity | +25.07% | +23.76% | +22.81% | +22.22% | +21.07% | +22.50% | +22.11% | +22.27% | +22.60% |
| Effective tax rate | +9.43% | +18.79% | +18.78% | +24.38% | +27.14% | +23.80% | +22.36% | +23.88% | +24.42% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +25.39% | +30.93% | +30.58% | +22.58% | +20.26% | +24.57% | +25.01% | +25.03% | +23.59% |
| Return on assets (ROA) | +15.87% | +16.53% | +18.36% | +11.76% | +10.92% | +13.08% | +13.87% | +13.09% | +13.44% |
| Return on capital (ROC) | +24.38% | +29.56% | +30.01% | +18.61% | +20.74% | +22.63% | +22.27% | +21.84% | +21.38% |
| Return on invested capital (ROIC) | +21.78% | +23.37% | +24.98% | +14.54% | +13.94% | +17.18% | +17.54% | +17.44% | +16.72% |
| Asset turnover | +68.13% | +69.33% | +72.14% | +51.72% | +52.17% | +55.88% | +59.04% | +55.79% | +57.38% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +23.29% | +23.84% | +25.46% | +22.74% | +20.94% | +23.41% | +23.49% | +23.47% | +23.43% |
| Asset turnover (× revenue / assets) | +68.13% | +69.33% | +72.14% | +51.72% | +52.17% | +55.88% | +59.04% | +55.79% | +57.38% |
| Equity multiplier (× assets / equity) | +160.04% | +187.14% | +166.54% | +192.03% | +185.47% | +187.89% | +180.34% | +191.20% | +175.53% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.68 | 0.69 | 0.72 | 0.52 | 0.52 | 0.56 | 0.59 | 0.56 | 0.57 |
| Fixed-asset turnover | 6.85 | 6.57 | 7.38 | 7.68 | 10.25 | — | — | — | — |
| Inventory turnover | 2.65 | 2.90 | 2.39 | 2.51 | 2.38 | — | — | — | — |
| Receivables turnover | 8.68 | 7.32 | 8.36 | 6.82 | 5.61 | — | — | — | — |
| Payables turnover | — | 7.89 | 4.77 | 116.56 | 0.84 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 42.07 | 49.88 | 43.66 | 53.51 | 65.12 | — | — | — | — |
| Days inventory outstanding (DIO) | 137.58 | 125.72 | 152.41 | 145.27 | 153.40 | — | — | — | — |
| Days payables outstanding (DPO) | — | 46.27 | 76.51 | 3.13 | 433.03 | — | — | — | — |
| Cash conversion cycle | 179.65 | 129.33 | 119.56 | 195.65 | -214.51 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.58 | 1.46 | 1.30 | 1.19 | 1.56 | 1.36 | 1.35 | 1.29 | 1.28 |
| FCF / Net income | 1.49 | 1.32 | 1.20 | 1.06 | 1.43 | 1.19 | 1.20 | 1.23 | 1.22 |
| FCF margin | +34.60% | +31.38% | +30.48% | +24.09% | +29.96% | +27.84% | +28.16% | +28.93% | +28.64% |
| OCF margin | +36.84% | +34.87% | +32.99% | +27.16% | +32.64% | +31.76% | +31.70% | +30.17% | +30.07% |
| CapEx / Revenue | +2.24% | +3.49% | +2.51% | +3.07% | +2.68% | +2.68% | +2.68% | +2.69% | +2.68% |
| CapEx / D&A | 0.51 | 0.92 | 0.73 | 0.73 | 0.61 | — | — | — | — |
| Stock-based comp / Revenue | +7.03% | +7.59% | +7.96% | +8.43% | +8.59% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 2.50 | 3.09 | 3.82 | 3.85 | 4.06 | 7.94 | 9.36 | 10.88 | 11.30 |
| EPS · basic | 2.54 | 3.13 | 3.86 | 3.89 | 4.09 | 8.01 | 9.54 | 10.85 | 11.30 |
| Book value / share | 9.83 | 9.98 | 12.48 | 17.07 | 20.03 | 21.54 | 24.31 | 27.13 | 30.96 |
| Tangible BV / share | 5.66 | 3.70 | 5.62 | 6.21 | 7.34 | 21.54 | 24.31 | 27.13 | 30.96 |
| Sales / share | 10.72 | 12.95 | 15.00 | 16.95 | 19.38 | 22.61 | 25.88 | 28.93 | 31.18 |
| Operating CF / share | 3.95 | 4.52 | 4.95 | 4.60 | 6.33 | 7.18 | 8.20 | 8.73 | 9.38 |
| Free cash flow / share | 3.71 | 4.06 | 4.57 | 4.08 | 5.81 | 6.30 | 7.29 | 8.37 | 8.93 |
| Dividends / share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Retention ratio | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% | +100.00% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +19.19% | +14.83% | +13.48% | +14.12% | +17.12% | +12.92% | +13.21% | +6.99% | +13.93% |
| Gross profit · YoY | — | +18.98% | +14.57% | +9.27% | +14.54% | +21.58% | +12.19% | +7.60% | +9.33% | +13.42% |
| Profit | ||||||||||
| Operating income · YoY | — | +37.81% | +16.54% | +7.96% | +22.14% | +15.93% | +9.22% | +11.61% | +9.03% | +15.93% |
| EBITDA · YoY | — | +31.39% | +21.61% | +13.87% | +12.33% | +16.94% | +13.54% | +15.37% | +7.60% | +16.39% |
| Net income · YoY | — | +21.98% | +22.64% | +1.38% | +5.06% | +30.93% | +13.34% | +13.10% | +6.80% | +14.02% |
| Operating | ||||||||||
| EBIT · YoY | — | +36.02% | +23.38% | +11.66% | +11.33% | +20.22% | +11.01% | +11.50% | +12.48% | +16.92% |
| R&D · YoY | — | +10.34% | +15.20% | +7.44% | +14.18% | +19.33% | +11.50% | +14.01% | +10.23% | +12.73% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +23.60% | +23.62% | +0.79% | +5.45% | +95.53% | +17.89% | +16.29% | +3.80% | +20.75% |
| EPS · basic · YoY | — | +23.23% | +23.32% | +0.78% | +5.14% | +95.83% | +19.16% | +13.70% | +4.17% | +20.52% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $454.71M | $887.42M | $764.41M | $2.59B | $2.48B | $2.54B | $2.8B | $3.24B | $3.46B |
| Net debt | -$634.23M | $5.09M | -$243.74M | -$58.95M | -$521.17M | -$257.73M | -$416.43M | -$512.75M | -$403.02M |
| Net debt / EBITDA | -0.69 | 0.00 | -0.17 | -0.04 | -0.28 | -0.12 | -0.17 | -0.18 | -0.13 |
| Debt / equity | 0.17 | 0.32 | 0.22 | 0.55 | 0.45 | 0.43 | 0.43 | 0.44 | 0.41 |
| Debt / assets | +10.37% | +17.27% | +13.48% | +28.80% | +24.43% | +22.92% | +23.61% | +22.79% | +23.42% |
| Equity / assets | +62.48% | +53.44% | +60.05% | +52.08% | +53.92% | +53.22% | +55.45% | +52.30% | +56.97% |
| Coverage | |||||||||
| EBITDA / interest expense | 53.95 | 52.49 | 40.45 | 21.93 | 16.07 | 22.81 | 22.19 | 23.59 | 23.50 |
| Operating income / interest | 45.88 | 46.82 | 34.58 | 17.77 | 14.16 | 19.92 | 18.65 | 19.18 | 19.36 |
| Interest expense | $16.98M | $22.93M | $36.19M | $76M | $116.54M | $96M | $112.02M | $121.57M | $131.3M |
| Liquidity | |||||||||
| Current ratio | 1.77 | 1.27 | 1.24 | 2.93 | 2.86 | — | — | — | — |
| Quick ratio | 1.48 | 1.02 | 1.02 | 2.53 | 2.41 | — | — | — | — |
| Cash ratio | 1.12 | 0.65 | 0.63 | 1.93 | 1.84 | — | — | — | — |
| Working capital | $744.54M | $359.07M | $385.35M | $2.65B | $3.03B | — | — | — | — |
| Working capital / revenue | +24.92% | +10.08% | +9.42% | +57.01% | +57.29% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 15.91x | 17.54x |
| Earnings yield | 1.3% | 1.3% |
| FCF yield | 1.9% | 1.4% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 20.3% | 22.6% |
| ROA | 10.9% | 11.8% |
| ROIC | 14.1% | 13.4% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | -0.28 | -0.04 |
| Interest coverage | — | — |
| Current ratio | 2.86x | 2.93x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).