Is Cadence Design Systems, Inc. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Cadence Design Systems, Inc. has moved from expensive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 87, an EV to EBITDA of 56.23, and a ROE of 23.03%.
In comparison with peers, Oracle Corp. has a more attractive P/E ratio of 45.21, while Intuit, Inc. is also fairly valued with a P/E of 57.61. Notably, Cadence's PEG ratio stands at 22.99, indicating a premium valuation relative to its growth prospects. Despite recent underperformance against the S&P 500, particularly over the past year with a decline of 7.80% compared to the index's gain of 10.26%, the company's strong fundamentals suggest it is positioned well within its industry.