CDNS PEG Ratio Analysis
Updated 105h ago·SEC filings & market data
Key Takeaway
The PEG ratio divides a stock's price-to-earnings multiple by its expected earnings growth rate, giving a rough sense of how much investors pay for each unit of future growth.
Sector Performance
36th percentileCDNS
0.50x
Sector Median
0.77x
Sector Avg
2.65x
Prior Period
3.84x(Jul 2026)
Deep Analysis
The PEG ratio divides a stock's price-to-earnings multiple by its expected earnings growth rate, giving a rough sense of how much investors pay for each unit of future growth.
At 0.50x, the current PEG sits below the sector median of 0.85x, placing CDNS in the 33rd percentile among peers, which suggests the stock is cheaper relative to its growth prospects than most companies in its sector. The trend is not fully available: the year-over-year change is reported as N/A, while the quarter-over-quarter change is -87.0%, and the last 8 quarters have no directional data. The two most recent historical values—0.50x and 3.84x—show a steep drop, meaning the valuation relative to growth has fallen dramatically in one quarter. This combination of a low PEG level and a sharp downward move implies reduced pricing pressure for the stock, but it also carries uncertainty because the trend data is incomplete. This metric supports the overall NEUTRAL verdict: the low PEG points to potential opportunity, yet the lack of a clear trend and the extreme QoQ swing prevent a stronger positive or negative stance.
Frequently Asked Questions
What does the PEG Ratio tell investors about CDNS?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CDNS's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: FORM (0.49x), HII (0.48x), CPRI (0.47x), CBOE (0.46x), CELH (0.46x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.50x
Sector Median
0.77x
Sector Avg
2.65x
How CDNS's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.