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Cadence Design Systems PS Ratio

: 15.07 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Cadence Design Systems's share price is $155.78. Cadence Design Systems's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $10.33. Hence, Cadence Design Systems's PS Ratio for today is 15.07.

Warning Sign:

Cadence Design Systems Inc stock PS Ratio (=15.07) is close to 10-year high of 16.15

The historical rank and industry rank for Cadence Design Systems's PS Ratio or its related term are showing as below:

NAS:CDNS' s PS Ratio Range Over the Past 10 Years
Min: 2.1   Med: 4.14   Max: 16.15
Current: 15.07

2.1
16.15

During the past 13 years, Cadence Design Systems's highest PS Ratio was 16.15. The lowest was 2.10. And the median was 4.14.

NAS:CDNS's PS Ratio is ranked lower than
73% of the 505 Companies
in the Software industry.

( Industry Median: 2.20 vs. NAS:CDNS: 15.07 )

Cadence Design Systems's Revenue per Sharefor the three months ended in Jun. 2021 was $2.61. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $10.33.

Good Sign:

Cadence Design Systems Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Cadence Design Systems was 18.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 11.40% per year. During the past 10 years, the average Revenue per Share Growth Rate was 9.50% per year.

During the past 13 years, Cadence Design Systems's highest 3-Year average Revenue per Share Growth Rate was 60.50% per year. The lowest was -16.70% per year. And the median was 7.45% per year.

Back to Basics: PS Ratio


Cadence Design Systems PS Ratio Historical Data

The historical data trend for Cadence Design Systems's PS 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.

* Premium members only.

Cadence Design Systems Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.04 6.03 5.72 8.33 14.22

Cadence Design Systems Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.02 11.81 14.22 13.69 13.24

Competitive Comparison

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

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

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



Cadence Design Systems PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

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

PS Ratio=Share Price/Revenue per Share (TTM)
=155.78/10.334
=15.07

Cadence Design Systems's Share Price of today is $155.78.
Cadence Design Systems's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $10.33.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Cadence Design Systems  (NAS:CDNS) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Cadence Design Systems PS Ratio Related Terms

Thank you for viewing the detailed overview of Cadence Design Systems's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Cadence Design Systems Business Description

Cadence Design Systems logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
Cadence Design Systems was founded in 1988 after the merger of ECAD and SDA Systems. Cadence is known as an electronic design automation, or EDA, firm that specializes in developing software, hardware, and intellectual property that automates the design and verification of integrated circuits or larger chip systems. Historically, semiconductor firms have relied on the firm's tools, but there has been a shift toward other nontraditional "systems" users given the development of the Internet of Things, artificial intelligence, autonomous vehicles, and cloud computing. Cadence is headquartered in Silicon Valley, has approximately 8,100 employees worldwide, and was added to the S&P 500 in late 2017.
Executives
Teng Chin-chi officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Tan Lip Bu director, officer: CEO ONE CALIFORNIA STREET 28TH FLOOR SAN FRANCISCO CA 94111
Beckley Thomas P officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Wall John M officer: Sr. VP & CFO 2655 SEELY AVENUE SAN JOSE CA 95134
Mandava Surendra Babu officer: Sr. Vice President 47211 LAKEVIEW BLVD FREMONT CA 94538
Devgan Anirudh officer: President 2655 SEELY AVENUE SAN JOSE CA 95134
Zaman Aneel officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Bostrom Susan L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BOSTROM SUSAN L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Flaminia Alinka officer: Sr. VP, Chief Legal Officer 3975 FREEDOM CIRCLE SANTA CLARA CA 95054
Siboni Roger S director 1900 SOUTH NORFOLK STREET SAN MATEO CA 94403
Cowie James J officer: Sr. VP, General Counsel 2655 SEELY AVENUE BLDG. 5 SAN JOSE CA 95134
Chew Lewis director DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Brennan Ita M director 5453 GREAT AMERICA PARKWAY SANTA CLARA CA 95054
Adams Mark director 834 TERRACE DRIVE LOS ALTOS CA 94024
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618

Cadence Design Systems Headlines

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