This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
The historical rank and industry rank for Cadence Design Systems's Median PS Value or its related term are showing as below:
CDNS'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 1.23 Med: 2.2 Max: 3.55
Current: 2.2
During the past 13 years, the highest Price to Median PS Value of Cadence Design Systems was 3.55. The lowest was 1.23. And the median was 2.20.
CDNS's Price-to-Median-PS-Value is ranked worse than 86.62% of 1024
companies
in the Software industry
Industry Median: 0.995
vs CDNS: 2.20
Cadence Design Systems Median PS Value Historical Data
The historical data trend for Cadence Design Systems's Median PS Value 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.
Competitive Comparison of Cadence Design Systems's Median PS Value
For the Software - Application subindustry, Cadence Design Systems's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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's Price-to-Median-PS-Value Distribution in the Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Price-to-Median-PS-Value falls into.
Cadence Design Systems Median PS Value Calculation
10-Year Median PS Ratio is 8.6105.
Cadence Design Systems's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $15.927.
* 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 (NAS:CDNS) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Cadence Design Systems's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
301.41
/
137.14
=
2.20
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of Cadence Design Systems's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates 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 enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.
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