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Cadence Design SystemsBSP:C1DN34 +1,650.68%86 Cyclically Adjusted PS Ratio is 421.60 as of Jul. 28, 2026, which is 2164% above its 10-year median of 18.62. GuruFocus rates BSP:C1DN34 with a GF Score™ of 86/100 and a GF Value™ of R$56.79 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,591 Software companies, Cadence Design Systems ranks worse than 97.93% on this metric.
The historical rank and industry rank for Cadence Design Systems's Cyclically Adjusted PS Ratio or its related term are showing as below:
BSP:C1DN34'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.85 Med: 18.62 Max: 31.77
Current: 24.98
During the past years, Cadence Design Systems's highest Cyclically Adjusted PS Ratio was 31.77. The lowest was 4.85. And the median was 18.62.
BSP:C1DN34's Cyclically Adjusted PS Ratio is ranked worse than 97.93% of 1591
companies
in the Software industry
Industry Median: 1.6
vs BSP:C1DN34: 24.98
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
Cadence Design Systems's adjusted revenue per share data for the three months ended in Mar. 2026 was R$14.083. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is R$2.06 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Cadence Design Systems (BSP:C1DN34) Cyclically Adjusted PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.
Cadence Design Systems Cyclically Adjusted PS Ratio Related Terms
Cadence Design Systems Cyclically Adjusted PS Ratio Historical Data
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The historical data trend for Cadence Design Systems's Cyclically Adjusted PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cadence Design Systems Cyclically Adjusted PS Ratio Chart
BSP:C1DN34 vs ADBE, DDOG, SNOW: Cyclically Adjusted PS Ratio Comparison
For the Software - Application subindustry, Cadence Design Systems's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cadence Design Systems Cyclically Adjusted PS Ratio vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Cyclically Adjusted PS Ratio falls into.
Cadence Design Systems Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PS Ratio of 421.60 mean?
Cadence Design Systems (BSP:C1DN34) has a Cyclically Adjusted PS Ratio of 421.60 as of Jul. 28, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Cadence Design Systems and its competitors. This is 2164% above median its historical median of 18.62. Over the past decade, Cadence Design Systems' Cyclically Adjusted PS Ratio has ranged from 4.85 to 31.77. According to the industry distribution chart, Cadence Design Systems ranks #1558 out of 1591 companies in the Software industry, placing it in the top 97.9%.
Is Cadence Design Systems' Cyclically Adjusted PS Ratio too high?
Cadence Design Systems' current Cyclically Adjusted PS Ratio of 421.60 is 2164% above median its 10-year median of 18.62. Over the past 10 years, this metric has ranged from a low of 4.85 to a high of 31.77. The Software industry median Cyclically Adjusted PS Ratio is 1.60. Cadence Design Systems' value of 421.60 is 26250% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1558 out of 1591 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cadence Design Systems has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Cyclically Adjusted PS Ratio compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #1558 out of 1591 companies for Cyclically Adjusted PS Ratio. This places Cadence Design Systems in the lower half of its industry. The industry median Cyclically Adjusted PS Ratio is 1.60. Cadence Design Systems' value of 421.60 is 26250% above this benchmark. Historically, Cadence Design Systems' own Cyclically Adjusted PS Ratio has ranged from 4.85 to 31.77 over the past decade. While the company's 10-year median is 18.62 vs. the industry median of 1.60, Cadence Design Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PS Ratio for a Software company?
The median Cyclically Adjusted PS Ratio among Software companies is 1.60, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Cyclically Adjusted PS Ratio of 421.60 is 26250% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Cyclically Adjusted PS Ratio is 1.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Cyclically Adjusted PS Ratio is 421.60, which is 2164% above median its own 10-year median of 18.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cadence Design Systems stock overvalued right now?
Based on GuruFocus' analysis, Cadence Design Systems (BSP:C1DN34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$56.79, compared to a current price of R$868.49 — trading 1429.3% above its estimated fair value. The current Cyclically Adjusted PS Ratio is 421.60, which is 2164% above median its 10-year median of 18.62 and 26250% above the Software industry median of 1.60. Cadence Design Systems' overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For Cadence Design Systems (BSP:C1DN34), the current Cyclically Adjusted PS Ratio is 421.60 as of Jul. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cadence Design Systems (BSP:C1DN34) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued.
The current stock price of R$868.49 is trading 1429.3% above its estimated GF Value™ of R$56.79.
GuruFocus considers Cadence Design Systems to be Significantly Overvalued.
Key valuation signals for BSP:C1DN34:
Cyclically Adjusted PS Ratio: 421.60 (2164% above median its 10-year median of 18.62)
GF Value™: R$56.79 vs. price of R$868.49 (1429.3% above fair value)
Industry Position: 26250% above the Software median (#1558 of 1591)
No single metric tells the full story. See the BSP:C1DN34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
86GF Score
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