Cadence Design Revenue vs. Price To Earning
| CDNS Stock | USD 301.47 1.60 0.53% |
Total Revenue | First Reported 1986-03-31 | Previous Quarter 1.1 B | Current Value 1.2 B | Quarterly Volatility 255 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.64 | 0.8936 |
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For Cadence Design profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cadence Design to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cadence Design Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cadence Design's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cadence Design Systems over time as well as its relative position and ranking within its peers.
Cadence |
Cadence Design's Revenue Breakdown by Earning Segment
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cadence Design. If investors know Cadence will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cadence Design listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Earnings Share 3.8 | Revenue Per Share 16.098 | Quarterly Revenue Growth 0.188 | Return On Assets 0.1087 |
The market value of Cadence Design Systems is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Design's value that differs from its market value or its book value, called intrinsic value, which is Cadence Design's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cadence Design's market value can be influenced by many factors that don't directly affect Cadence Design's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cadence Design's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Design is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Design's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Cadence Design Systems Price To Earning vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cadence Design's current stock value. Our valuation model uses many indicators to compare Cadence Design value to that of its competitors to determine the firm's financial worth. Cadence Design Systems is the top company in revenue category among its peers. It also is number one stock in price to earning category among its peers . The ratio of Revenue to Price To Earning for Cadence Design Systems is about 69,664,214 . At this time, Cadence Design's Total Revenue is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cadence Design by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Cadence Revenue vs. Competition
Cadence Design Systems is the top company in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 14.6 Billion. Cadence Design totals roughly 4.09 Billion in revenue claiming about 28% of equities under Information Technology industry.
Cadence Price To Earning vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Cadence Design |
| = | 4.09 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Cadence Design |
| = | 58.71 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cadence Price To Earning Comparison
Cadence Design is currently under evaluation in price to earning category among its peers.
Cadence Design Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cadence Design, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cadence Design will eventually generate negative long term returns. The profitability progress is the general direction of Cadence Design's change in net profit over the period of time. It can combine multiple indicators of Cadence Design, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -94.8 M | -90 M | |
| Operating Income | 1.3 B | 1.3 B | |
| Income Before Tax | 1.3 B | 1.3 B | |
| Total Other Income Expense Net | 30.7 M | 32.2 M | |
| Net Income | 1 B | 1.1 B | |
| Income Tax Expense | 240.8 M | 252.8 M | |
| Net Income Applicable To Common Shares | 976.3 M | 1 B | |
| Net Income From Continuing Ops | 957.6 M | 1 B | |
| Non Operating Income Net Other | -4.9 M | -4.6 M | |
| Interest Income | 27.4 M | 28.8 M | |
| Net Interest Income | -8.9 M | -9.3 M | |
| Change To Netincome | 194.2 M | 203.9 M | |
| Net Income Per Share | 3.86 | 4.06 | |
| Income Quality | 1.30 | 1.01 | |
| Net Income Per E B T | 0.81 | 0.61 |
Cadence Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cadence Design. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cadence Design position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cadence Design's important profitability drivers and their relationship over time.
Use Cadence Design in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cadence Design position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cadence Design will appreciate offsetting losses from the drop in the long position's value.Cadence Design Pair Trading
Cadence Design Systems Pair Trading Analysis
The ability to find closely correlated positions to Cadence Design could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cadence Design when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cadence Design - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cadence Design Systems to buy it.
The correlation of Cadence Design is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cadence Design moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cadence Design Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cadence Design can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cadence Design position
In addition to having Cadence Design in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Cadence Stock Analysis
When running Cadence Design's price analysis, check to measure Cadence Design's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.