PEG Ratio
Updated 200h ago
Sector Performance
86th percentileCDNS
3.84x
Sector Median
0.94x
Sector Avg
3.01x
Deep Analysis
The PEG ratio (price-to-earnings divided by earnings growth rate) measures a stock's valuation relative to its expected profit growth; at 3.84x, the current value is nearly four times earnings growth, indicating a premium price.
This is far above the sector median of 0.97x and places CDNS in the 86th percentile among its peers, meaning it is more expensive than almost nine out of ten similar companies. Trend data is limited: year-over-year change is not available, but the ratio rose 41.2% quarter-over-quarter from 2.72x to 3.84x, showing a sharp recent increase in valuation. The combination of a high absolute level and a rising trend implies elevated risk, as the stock has become more costly without a clear improvement in growth expectations. This metric contradicts the overall NEUTRAL verdict, as the elevated and increasing PEG ratio points to overvaluation relative to sector norms.
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: NUE (0.06x), VLO (0.06x), LNC (0.05x), NKE (0.05x), NCLH (0.05x).
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.
Master CDNS's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full CDNS research report →CDNS
3.84x
Sector Median
0.94x
Sector Avg
3.01x
How CDNS's PEG Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.