Valuation Trading Multiples & Precedent Transactions: CAD and EDA Software Companies
Valuation benchmarks for CAD and EDA Software Companies. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - CAD and EDA Software Companies Market Context & Valuation Drivers
Companies in this public trading comparables group are public software vendors delivering CAD, CAE, CAM, PCB, and EDA tools that underpin end‑to‑end product design and verification for mechanical and electronic systems. They monetize via subscriptions, perpetual licenses, maintenance, and professional services, benefit from sticky engineer workflows, and exhibit high gross margins. They are grouped as valuation benchmarks due to shared mission‑critical design focus and recurring revenue profiles.
Typical capabilities span 2D/3D CAD modeling for parts and assemblies; physics‑based CAE simulation across structural, thermal, and electromagnetic domains; CAM for toolpaths and manufacturability; PCB layout and system‑level signal integrity; IC design, verification, and DFM; packaged IP blocks and verification IP; data management integrations with PLM; and design methodology consulting. Platforms emphasize interoperability, standards compliance, automation, and APIs that integrate with enterprise engineering toolchains.
Primary customers include industrial manufacturers, electronics and semiconductor companies, and engineering services firms. Buyers seek faster time‑to‑market, higher design accuracy, manufacturability, and compliance. Valuation drivers typically include ARR and subscription mix, net revenue retention and seat expansion, license renewals and maintenance attach rates, gross margin stability, and R&D efficiency, providing clear public trading comparables and consistent revenue visibility through long product cycles and entrenched workflows.
2. Valuation Analysis: Public Trading Comps & Multiples for CAD and EDA Software Companies companies
2.1 - Public Peer Groups & Median Valuation Multiples for CAD and EDA Software Companies sector
Comparable group 1: CAD and EDA Software Companies
Zwsoft
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of CAD/CAM/CAE software solutions, specializing in 2D and 3D design tools for product development, offering reliable and innovative CAx technologies for engineering and manufacturing sectors
- Key Products:
- ZWCAD: Fast and powerful 2D CAD solution with high compatibility with DWG file format
- ZW3D: Integrated 3D CAD/CAE/CAM solution for complete product development from concept to production
- CAx Solutions: All-in-one solutions for CAD, CAE, and CAM needs in engineering
- Electromagnetic/Structural Simulation: Tools for simulating electromagnetic fields and structural integrity
- ZWCAD Cloud: Cloud-based CAD solution for remote access and collaboration
Cadence Design Systems
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of software, hardware, and intellectual property for the design and verification of advanced semiconductors and electronic systems, offering custom IC design, simulation products, system design, analysis tools, and methodology services.
- Key Products:
- IC Design Products: Tools for custom, analog, mixed-signal, RF, and digital IC design and verification
- System Design and Analysis: Solutions for PCB design, IC packaging, and system analysis
- IP Solutions: Offers verified, customizable IP blocks and verification IP
- Design Services: Methodology, education, and hosted design solutions with technical support
- Tensilica DSPs: IP for audio, vision, AI, communications, radar, and automotive applications.