Cadence Design Systems stock climbed for six consecutive trading days. The stock gained 13% cumulatively. This added approximately $9.6 billion to its market capitalization. The rally brought the company's total valuation to around $85 billion. The stock had been down over the trailing three months.
Analysis suggests the share price may be getting ahead of business fundamentals. As of September 23, the stock traded around $309 a share. Its price-to-earnings multiple is 61.4. This is considerably higher than the median of 36.7 for S&P 500 Information Technology stocks. This indicates an expensive valuation relative to its peers.