CDNSNEUTRAL

CDNS EV/EBITDA Analysis

44.9x

Updated 105h ago·SEC filings & market data

Key Takeaway

EV/EBITDA compares a company’s total value to its operating earnings before interest, taxes, depreciation, and amortization; at 44.0x, investors are paying $44 for every $1 of EBITDA.

Sector Performance

93th percentile

CDNS

44.9x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

44.0x(Aug 2026)

↓ Declining

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Deep Analysis

EV/EBITDA compares a company’s total value to its operating earnings before interest, taxes, depreciation, and amortization; at 44.0x, investors are paying $44 for every $1 of EBITDA.

This is far above the sector median of 13.6x, placing CDNS in the 92nd percentile among sector peers. The metric is decreasing, with a quarter-over-quarter drop of -4.3% and no year-over-year change reported, while historical values show a slide from 53.6x to 46.0x to 44.0x. The combination of a very high level with a downward trend means the stock still carries a premium valuation, but the compression could reduce downside risk if earnings growth holds. This partially supports the overall NEUTRAL verdict: the extreme multiple signals caution, while the declining trend offers a potential path toward more reasonable pricing. Overall, the metric does not contradict NEUTRAL, as high valuation is tempered by improving comparability.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CDNS?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are CDNS's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.