Cadence Design SystemsFRA:CDS -1.92%99 PB Ratio is 15.67 as of Jun. 26, 2026, which is 7% above its 10-year median of 14.63. GuruFocus rates FRA:CDS with a GF Score™ of 99/100 and a GF Value™ of €324.68 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,624 Software companies, Cadence Design Systems ranks worse than 94.66% on this metric.
The historical rank and industry rank for Cadence Design Systems's PB Ratio or its related term are showing as below:
FRA:CDS'
s PB Ratio Range Over the Past 10 Years
Min: 6.54 Med: 14.63 Max: 25.76
Current: 15.48
During the past 13 years, Cadence Design Systems's highest PB Ratio was 25.76. The lowest was 6.54. And the median was 14.63.
FRA:CDS's PB Ratio is ranked worse than 94.66% of 2624
companies
in the Software industry
Industry Median: 2.32
vs FRA:CDS: 15.48
During the past 12 months, Cadence Design Systems's average Book Value Per Share Growth Rate was 36.00% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 26.00% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 18.40% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 20.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Cadence Design Systems was 100.80% per year. The lowest was -59.50% per year. And the median was 14.60% per year.
Back to Basics: PB Ratio
Cadence Design Systems (FRA:CDS) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
* 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 PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's PB Ratio distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Cadence Design Systems (FRA:CDS) has a PB Ratio of 15.67 as of Jun. 26, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Cadence Design Systems and its competitors. This is near median its historical median of 14.63. Over the past decade, Cadence Design Systems' PB Ratio has ranged from 6.54 to 25.76. According to the industry distribution chart, Cadence Design Systems ranks #2484 out of 2624 companies in the Software industry, placing it in the top 94.7%.
Is Cadence Design Systems' PB Ratio too high?
Cadence Design Systems' current PB Ratio of 15.67 is near median its 10-year median of 14.63. Over the past 10 years, this metric has ranged from a low of 6.54 to a high of 25.76. The Software industry median PB Ratio is 2.32. Cadence Design Systems' value of 15.67 is 575.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #2484 out of 2624 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' PB Ratio compare to ADBE and INTU?
According to the Software industry distribution chart, Cadence Design Systems ranks #2484 out of 2624 companies for PB Ratio. This places Cadence Design Systems in the lower half of its industry. The industry median PB Ratio is 2.32. Cadence Design Systems' value of 15.67 is 575.4% above this benchmark. Historically, Cadence Design Systems' own PB Ratio has ranged from 6.54 to 25.76 over the past decade. While the company's 10-year median is 14.63 vs. the industry median of 2.32, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.32, based on 2,624 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current PB Ratio of 15.67 is 575.4% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median PB Ratio is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current PB Ratio is 15.67, which is near median its own 10-year median of 14.63. 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 (FRA:CDS) is currently considered Fairly Valued. The stock's GF Value™ is €324.68, compared to a current price of €322.55 — trading 0.7% below its estimated fair value. The current PB Ratio is 15.67, which is near median its 10-year median of 14.63 and 575.4% above the Software industry median of 2.32. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Cadence Design Systems (FRA:CDS), the current PB Ratio is 15.67 as of Jun. 26, 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 (FRA:CDS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of €322.55 is trading 0.7% below its estimated GF Value™ of €324.68.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for FRA:CDS:
PB Ratio: 15.67 (near median its 10-year median of 14.63)
GF Value™: €324.68 vs. price of €322.55 (0.7% below fair value)
Industry Position: 575.4% above the Software median (#2484 of 2624)
No single metric tells the full story. See the FRA:CDS 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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