EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Cadence Design Systems's Enterprise Value is CHF84,643 Mil.
Cadence Design Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was CHF1,142 Mil. Therefore, Cadence Design Systems's EV-to-FCF for today is 74.13.
The historical rank and industry rank for Cadence Design Systems's EV-to-FCF or its related term are showing as below:
XSWX:CDNS'
s EV-to-FCF Range Over the Past 10 Years
Min: 18.87 Med: 40.42 Max: 93.49
Current: 73.15
During the past 13 years, the highest EV-to-FCF of Cadence Design Systems was 93.49. The lowest was 18.87. And the median was 40.42.
XSWX:CDNS's EV-to-FCF is ranked worse than 89.74% of 1589
companies
in the Software industry
Industry Median: 14.3
vs XSWX:CDNS: 73.15
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Cadence Design Systems (XSWX:CDNS) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Cadence Design Systems's PE Ratio (TTM) for today is calculated as:
Cadence Design Systems's share price for today is CHF310.65.
Cadence Design Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF3.416.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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 the Software - Application subindustry, Cadence Design Systems's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's EV-to-FCF falls into.
Cadence Design Systems's current Enterprise Value is CHF84,643 Mil.
Cadence Design Systems's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF1,142 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 (XSWX:CDNS) has a EV-to-FCF of 74.13 as of Jul. 03, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Cadence Design Systems and its competitors. This is 83% above median its historical median of 40.42. Over the past decade, Cadence Design Systems' EV-to-FCF has ranged from 18.87 to 93.49. According to the industry distribution chart, Cadence Design Systems ranks #1426 out of 1589 companies in the Software industry, placing it in the top 89.7%.
Is Cadence Design Systems' EV-to-FCF too high?
Cadence Design Systems' current EV-to-FCF of 74.13 is 83% above median its 10-year median of 40.42. Over the past 10 years, this metric has ranged from a low of 18.87 to a high of 93.49. The Software industry median EV-to-FCF is 14.30. Cadence Design Systems' value of 74.13 is 418.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1426 out of 1589 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, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' EV-to-FCF compare to ?
According to the Software industry distribution chart, Cadence Design Systems ranks #1426 out of 1589 companies for EV-to-FCF. This places Cadence Design Systems in the lower half of its industry. The industry median EV-to-FCF is 14.30. Cadence Design Systems' value of 74.13 is 418.4% above this benchmark. Historically, Cadence Design Systems' own EV-to-FCF has ranged from 18.87 to 93.49 over the past decade. While the company's 10-year median is 40.42 vs. the industry median of 14.30, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current EV-to-FCF of 74.13 is 418.4% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current EV-to-FCF is 74.13, which is 83% above median its own 10-year median of 40.42. 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?
Cadence Design Systems (XSWX:CDNS) has a current EV-to-FCF of 74.13. The stock's GF Value™ is CHF314.60, compared to a current price of CHF310.65 — trading 1.3% below its estimated fair value. The current EV-to-FCF is 74.13, which is 83% above median its 10-year median of 40.42 and 418.4% above the Software industry median of 14.30. 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 EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Cadence Design Systems (XSWX:CDNS), the current EV-to-FCF is 74.13 as of Jul. 03, 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 (XSWX:CDNS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of CHF310.65 is trading 1.3% below its estimated GF Value™ of CHF314.60.
Key valuation signals for XSWX:CDNS:
EV-to-FCF: 74.13 (83% above median its 10-year median of 40.42)
GF Value™: CHF314.60 vs. price of CHF310.65 (1.3% below fair value)
Industry Position: 418.4% above the Software median (#1426 of 1589)
No single metric tells the full story. See the XSWX: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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