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Cadence Design Systems E10

: $1.50 (As of Sep. 2021)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Cadence Design Systems's adjusted earnings per share data for the three months ended in Sep. 2021 was $0.630. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.50 for the trailing ten years ended in Sep. 2021.

As of today (2021-12-01), Cadence Design Systems's current stock price is $181.23. Cadence Design Systems's E10 for the quarter that ended in Sep. 2021 was $1.50. Cadence Design Systems's Shiller PE Ratio of today is 120.82.

During the past 13 years, the highest Shiller PE Ratio of Cadence Design Systems was 125.41. The lowest was 47.90. And the median was 87.04.


Cadence Design Systems E10 Historical Data

The historical data trend for Cadence Design Systems's E10 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.

* Premium members only.

Cadence Design Systems Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.27 -0.32 0.66 1.10 1.27

Cadence Design Systems Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.19 1.27 1.35 1.43 1.50

Competitive Comparison

For the Software - Application subindustry, Cadence Design Systems's E10, along with its competitors' market caps and E10 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 E10 Distribution

For the Software industry and Technology sector, Cadence Design Systems's E10 distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's E10 falls into.



Cadence Design Systems E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Cadence Design Systems's adjusted earnings per share data for the three months ended in Sep. 2021 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2021 (Change)*Current CPI (Sep. 2021)
=0.63/115.7343*115.7343
=0.630

Current CPI (Sep. 2021) = 115.7343.

Cadence Design Systems Quarterly Data

per share eps CPI Adj_EPS
201112 0.040 95.213 0.049
201203 0.110 96.783 0.132
201206 0.130 96.819 0.155
201209 0.210 97.633 0.249
201212 1.100 96.871 1.314
201303 0.270 98.209 0.318
201306 0.030 98.518 0.035
201309 0.130 98.790 0.152
201312 0.130 98.326 0.153
201403 0.110 99.695 0.128
201406 0.080 100.560 0.092
201409 0.120 100.428 0.138
201412 0.210 99.070 0.245
201503 0.120 99.621 0.139
201506 0.190 100.684 0.218
201509 0.250 100.392 0.288
201512 0.260 99.792 0.302
201603 0.170 100.470 0.196
201606 0.170 101.688 0.193
201609 0.230 101.861 0.261
201612 0.140 101.863 0.159
201703 0.250 102.862 0.281
201706 0.250 103.349 0.280
201709 0.290 104.136 0.322
201712 -0.050 104.011 -0.056
201803 0.260 105.290 0.286
201806 0.270 106.317 0.294
201809 0.350 106.507 0.380
201812 0.350 105.998 0.382
201903 0.430 107.251 0.464
201906 0.380 108.070 0.407
201909 0.360 108.329 0.385
201912 2.360 108.420 2.519
202003 0.440 108.902 0.468
202006 0.470 108.767 0.500
202009 0.580 109.815 0.611
202012 0.620 109.897 0.653
202103 0.670 111.754 0.694
202106 0.560 114.631 0.565
202109 0.630 115.734 0.630

Add all the adjusted EPS together and divide 10 will get our e10.


Cadence Design Systems  (NAS:CDNS) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Cadence Design Systems's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=181.23/1.5
=120.82

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Cadence Design Systems was 125.41. The lowest was 47.90. And the median was 87.04.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Cadence Design Systems E10 Related Terms

Thank you for viewing the detailed overview of Cadence Design Systems's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Cadence Design Systems Business Description

Cadence Design Systems logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
Cadence Design Systems was founded in 1988 after the merger of ECAD and SDA Systems. Cadence is known as an electronic design automation, or EDA, firm that specializes in developing software, hardware, and intellectual property that automates the design and verification of integrated circuits or larger chip systems. Historically, semiconductor firms have relied on the firm's tools, but there has been a shift toward other nontraditional "systems" users given the development of the Internet of Things, artificial intelligence, autonomous vehicles, and cloud computing. Cadence is headquartered in Silicon Valley, has approximately 8,100 employees worldwide, and was added to the S&P 500 in late 2017.
Executives
Teng Chin-chi officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Tan Lip Bu director, officer: CEO ONE CALIFORNIA STREET 28TH FLOOR SAN FRANCISCO CA 94111
Beckley Thomas P officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Wall John M officer: Sr. VP & CFO 2655 SEELY AVENUE SAN JOSE CA 95134
Mandava Surendra Babu officer: Sr. Vice President 47211 LAKEVIEW BLVD FREMONT CA 94538
Devgan Anirudh officer: President 2655 SEELY AVENUE SAN JOSE CA 95134
Zaman Aneel officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Bostrom Susan L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BOSTROM SUSAN L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Flaminia Alinka officer: Sr. VP, Chief Legal Officer 3975 FREEDOM CIRCLE SANTA CLARA CA 95054
Siboni Roger S director 1900 SOUTH NORFOLK STREET SAN MATEO CA 94403
Cowie James J officer: Sr. VP, General Counsel 2655 SEELY AVENUE BLDG. 5 SAN JOSE CA 95134
Chew Lewis director DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Brennan Ita M director 5453 GREAT AMERICA PARKWAY SANTA CLARA CA 95054
Adams Mark director 834 TERRACE DRIVE LOS ALTOS CA 94024
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618

Cadence Design Systems Headlines

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