Cadence Design SystemsCDNS -1.74%99 EBITDA Margin % is 36.91% as of Mar. 2026, which is 22% above its 10-year median of 30.31. GuruFocus rates CDNS with a GF Score™ of 99/100 and a GF Value™ of $376.87 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Cadence Design Systems ranks better than 92.09% on this metric.
Cadence Design Systems (NAS:CDNS) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Cadence Design Systems EBITDA Margin % Related Terms
Cadence Design Systems EBITDA Margin % Historical Data
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The historical data trend for Cadence Design Systems's EBITDA Margin % 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.
CDNS vs ADBE, INTU, ADP: EBITDA Margin % Comparison
For the Software - Application subindustry, Cadence Design Systems's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's EBITDA Margin % falls into.
* 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 (CDNS) has a EBITDA Margin % of 36.91% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Cadence Design Systems and its competitors. This is 22% above median its historical median of 30.31. Over the past decade, Cadence Design Systems' EBITDA Margin % has ranged from 20.95 to 35.91. According to the industry distribution chart, Cadence Design Systems ranks #223 out of 2818 companies in the Software industry, placing it in the top 7.9%.
Is Cadence Design Systems' EBITDA Margin % too high?
Cadence Design Systems' current EBITDA Margin % of 36.91% is 22% above median its 10-year median of 30.31. Over the past 10 years, this metric has ranged from a low of 20.95 to a high of 35.91. The Software industry median EBITDA Margin % is 8.07. Cadence Design Systems' value of 36.91% is 357.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #223 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cadence Design Systems has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' EBITDA Margin % compare to ADBE and INTU?
According to the Software industry distribution chart, Cadence Design Systems ranks #223 out of 2818 companies for EBITDA Margin %. This places Cadence Design Systems in the top 8% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Cadence Design Systems' value of 36.91% is 357.4% above this benchmark. Historically, Cadence Design Systems' own EBITDA Margin % has ranged from 20.95 to 35.91 over the past decade. While the company's 10-year median is 30.31 vs. the industry median of 8.07, 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 EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current EBITDA Margin % of 36.91% is 357.4% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current EBITDA Margin % is 36.91%, which is 22% above median its own 10-year median of 30.31. 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 (CDNS) is currently considered Fairly Valued. The stock's GF Value™ is $376.87, compared to a current price of $372.40 — trading 1.2% below its estimated fair value. The current EBITDA Margin % is 36.91%, which is 22% above median its 10-year median of 30.31 and 357.4% above the Software industry median of 8.07. Cadence Design Systems' overall GF Score™ is 99/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Cadence Design Systems (CDNS), the current EBITDA Margin % is 36.91% as of Mar. 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 (CDNS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of $372.40 is trading 1.2% below its estimated GF Value™ of $376.87.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for CDNS:
EBITDA Margin %: 36.91% (22% above median its 10-year median of 30.31)
GF Value™: $376.87 vs. price of $372.40 (1.2% below fair value)
Industry Position: 357.4% above the Software median (#223 of 2818)
No single metric tells the full story. See the CDNS 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.
99GF Score
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