Cadence Design Systems (Cadence Design Systems) PEG Ratio

Cadence Design Systems Annual Data
	Trend	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
PEG Ratio							1.34	3.91	3.60	2.23	2.28

Cadence Design Systems Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
PEG Ratio																2.23	2.77	3.00	2.82	2.28

For the Software - Application subindustry, Cadence Design Systems's PEG Ratio, along with its competitors' market caps and PEG 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.

For the Software industry and Technology sector, Cadence Design Systems's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's PEG Ratio falls into.

Cadence Design Systems PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Cadence Design Systems's PEG Ratio for today is calculated as

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

Cadence Design Systems  (NAS:CDNS) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.

Cadence Design Systems PEG Ratio Related Terms

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Cadence Design Systems (Cadence Design Systems) Business Description