CDNS Cadence Design Systems, Inc.

Capital-structure-agnostic valuation multiple. Useful for comparing levered companies because it adds debt and removes cash from the numerator and uses pre-interest, pre-tax, pre-depreciation earnings in the denominator.

Valuation expressed against the cash actually available to all capital providers. Often more honest than EV/EBITDA when capex is meaningful relative to D&A.

Adjusts the numerator for debt and cash so heavily-levered or cash-rich companies are comparable. Particularly useful for cross-industry valuation work.

The multiple equity analysts most commonly quote because it reflects expected earnings rather than the trailing window. Same caveats as trailing P/E - a depressed multiple may be a value trap if forward earnings are too optimistic.

Capital-structure-agnostic earnings yield. Pairs with Greenblatt ROC to compute the Magic Formula rank (the universe-rank of EY plus universe-rank of ROC). Pre-tax operating earnings divided by the full claim on the firm.

How many dollars of book equity each share represents. Useful for asset-heavy businesses (banks, industrials) where book value approximates liquidation floor; less informative for asset-light franchises whose value is in intangibles.

Multiple of trailing-twelve-month earnings the market has assigned to the company. Lower means cheaper relative to current earnings power, but a single low P/E can also mean the market expects earnings to fall.

Useful when earnings are negative or noisy (early-stage companies, restructurings). Works best within an industry because gross margin profiles vary wildly.

Divides P/E by the annualized EPS growth rate (in percent points). Below 1.0 is conventionally read as 'cheap relative to growth.' Sensitive to which growth window you use; can flip sign if earnings are negative.

Productivity of the asset base. Combined with net margin, this is the DuPont decomposition of ROA: ROA = net_margin * asset_turnover.

Sanity-check on earnings quality. Persistently below 1 means working capital or capex is consuming earnings; persistently above 1 is unusual and may flag accounting conservatism or non-cash drags.

FCF the business throws off relative to what you pay for the equity. Treats the equity as a perpetual claim on cash. Cyclicals can swing below zero in a downturn.

Pre-capex version of cash conversion. Numbers persistently below 1 suggest accruals are doing the work; numbers persistently above 1 are a (mild) positive sign.

Bottom-line growth on a per-share basis, capturing both operating progress and any net buyback effect. The denominator uses absolute prior EPS so a turnaround from negative to positive earnings reads with the conventional sign.

Strips out receivables and inventory, leaving only cash and equivalents over current liabilities. Stress-tests whether the business can meet obligations even if collections seize up.

The acid-test variant of current ratio strips inventory from current assets, since inventory can be stale or written down before it becomes cash. Sweet spot 1.2x; below 0.5x signals liquidity stress, above 3x signals trapped working capital.

DuPont productivity measure. Combined with margin it tells the asset-light vs asset-heavy story. Very high turnover in retail can flag stockouts — the metric reads best industry-relative.

Lets you compare equity earning power directly to bond yields. A 6% earnings yield is the equity-side analog to a 6% coupon, with the difference being earnings can grow (or contract).

Buys oversold pullbacks within an established uptrend (price above the 200-day SMA). Holds while RSI(2) is below an exit threshold; exits when RSI(2) crosses above 60.

+1 when price is above regime_ma and RSI(2) drops below oversold; held while inside the trade; back to 0 when RSI(2) crosses above exit.

+1 = pullback-buy state active, 0 = flat. Bear-side variant uses the symmetric short rule.

Bullish when %K crosses above %D while both lines are below the oversold threshold; bearish when %K crosses below %D while both are above overbought.

+1 on bullish cross in oversold; -1 on bearish cross in overbought; 0 otherwise.

+1 = oversold bullish cross, -1 = overbought bearish cross.