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Cadence Design SystemsMEX:CDNS 99 EV-to-EBIT is 47.08 as of Aug. 01, 2026, which is 3% below its 10-year median of 48.78. GuruFocus rates MEX:CDNS with a GF Score™ of 99/100 and a GF Value™ of MXN6,855.87 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,774 Software companies, Cadence Design Systems ranks worse than 83.37% on this metric.
Cadence Design Systems (MEX:CDNS) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Cadence Design Systems's Enterprise Value for the quarter that ended in Jun. 2026 was MXN1,849,458 Mil.
Cadence Design Systems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN34,950 Mil.
* 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.
* 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.
MEX:CDNS vs ADBE, DDOG, SNOW: EV-to-EBIT Comparison
For the Software - Application subindustry, Cadence Design Systems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's EV-to-EBIT falls into.
Cadence Design Systems's current Enterprise Value is MXN1,645,591 Mil.
Cadence Design Systems's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN34,950 Mil.
* 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 (MEX:CDNS) has a EV-to-EBIT of 47.08 as of Aug. 01, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cadence Design Systems and its competitors. This is near median its historical median of 48.78. Over the past decade, Cadence Design Systems' EV-to-EBIT has ranged from 24.07 to 66.86. According to the industry distribution chart, Cadence Design Systems ranks #1479 out of 1774 companies in the Software industry, placing it in the top 83.4%.
Is Cadence Design Systems' EV-to-EBIT too high?
Cadence Design Systems' current EV-to-EBIT of 47.08 is near median its 10-year median of 48.78. Over the past 10 years, this metric has ranged from a low of 24.07 to a high of 66.86. The Software industry median EV-to-EBIT is 14.08. Cadence Design Systems' value of 47.08 is 234.5% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1479 out of 1774 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cadence Design Systems has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' EV-to-EBIT compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #1479 out of 1774 companies for EV-to-EBIT. This places Cadence Design Systems in the lower half of its industry. The industry median EV-to-EBIT is 14.08. Cadence Design Systems' value of 47.08 is 234.5% above this benchmark. Historically, Cadence Design Systems' own EV-to-EBIT has ranged from 24.07 to 66.86 over the past decade. While the company's 10-year median is 48.78 vs. the industry median of 14.08, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.08, based on 1,774 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current EV-to-EBIT of 47.08 is 234.5% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median EV-to-EBIT is 14.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current EV-to-EBIT is 47.08, which is near median its own 10-year median of 48.78. 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 (MEX:CDNS) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN6,855.87, compared to a current price of MXN6,011.00 — trading 12.3% below its estimated fair value. The current EV-to-EBIT is 47.08, which is near median its 10-year median of 48.78 and 234.5% above the Software industry median of 14.08. Cadence Design Systems' overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Cadence Design Systems (MEX:CDNS), the current EV-to-EBIT is 47.08 as of Aug. 01, 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 (MEX:CDNS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of MXN6,011.00 is trading 12.3% below its estimated GF Value™ of MXN6,855.87.
GuruFocus considers Cadence Design Systems to be Modestly Undervalued.
Key valuation signals for MEX:CDNS:
EV-to-EBIT: 47.08 (near median its 10-year median of 48.78)
GF Value™: MXN6,855.87 vs. price of MXN6,011.00 (12.3% below fair value)
Industry Position: 234.5% above the Software median (#1479 of 1774)
No single metric tells the full story. See the MEX: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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