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Cadence Design Systems (MEX:CDNS) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Cadence Design Systems Forward PE Ratio Related Terms
Cadence Design Systems Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Cadence Design Systems's Forward PE 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 Forward PE Ratio Chart
Cadence Design Systems Annual Data
Trend
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
46.30
51.28
34.97
46.51
44.92
39.22
Cadence Design Systems Quarterly Data
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
35.09
46.30
42.02
43.29
46.08
51.28
41.84
40.49
35.21
34.97
41.49
45.25
41.32
46.51
50.51
52.08
39.37
44.92
38.93
45.82
44.04
39.22
34.47
MEX:CDNS vs NOW, ADP, SNOW: Forward PE Ratio Comparison
For the Software - Application subindustry, Cadence Design Systems's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Forward PE Ratio falls into.
Cadence Design Systems Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Cadence Design Systems (MEX:CDNS) has a Forward PE Ratio of 41.46 as of Jul. 19, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cadence Design Systems and its competitors. According to the industry distribution chart, Cadence Design Systems ranks #936 out of 1173 companies in the Software industry, placing it in the top 79.8%.
Is Cadence Design Systems' Forward PE Ratio too high?
Cadence Design Systems' current Forward PE Ratio is 41.46. The Software industry median Forward PE Ratio is 18.64. Cadence Design Systems' value of 41.46 is 122.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #936 out of 1173 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cadence Design Systems has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Forward PE Ratio compare to NOW and ADP?
According to the Software industry distribution chart, Cadence Design Systems ranks #936 out of 1173 companies for Forward PE Ratio. This places Cadence Design Systems in the lower half of its industry. The industry median Forward PE Ratio is 18.64. Cadence Design Systems' value of 41.46 is 122.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.64, based on 1,173 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Forward PE Ratio of 41.46 is 122.4% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Forward PE Ratio is 18.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Forward PE Ratio is 41.46. 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 MXN6,671.81, compared to a current price of MXN5,763.00 — trading 13.6% below its estimated fair value. The current Forward PE Ratio is 41.46 and 122.4% above the Software industry median of 18.64. Cadence Design Systems' overall GF Score™ is 97/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Cadence Design Systems (MEX:CDNS), the current Forward PE Ratio is 41.46 as of Jul. 19, 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 MXN5,763.00 is trading 13.6% below its estimated GF Value™ of MXN6,671.81.
GuruFocus considers Cadence Design Systems to be Modestly Undervalued.
Key valuation signals for MEX:CDNS:
Forward PE Ratio: 41.46
GF Value™: MXN6,671.81 vs. price of MXN5,763.00 (13.6% below fair value)
Industry Position: 122.4% above the Software median (#936 of 1173)
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.
97GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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