Logo
CDNS logo
Cadence Design Systems Inc.
CDNS
356.12 (-0.95%) 3.39
Market cap
$98.07(B)
Earnings date
Oct-26-2026
Category
Sector
Information Technology
Industry
Software
Cadence Design Systems Inc. develops computational AI-driven software hardware and silicon intellectual property products and solutions. The company offers functional verification services such as Jasper a formal verification platform; Xcelium a parallel logic simulation platform; Verisium a generative AI solution; Palladium an enterprise emulation platform; and Protium a prototyping platform for chip verification as well as digital IC design and sign off products including In novus platform; and custom IC design and simulation product include Virtuoso a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express universal accelerator and compute express links and multiple memory interfaces; and Ten Silica a digital signal processor. In addition the company’s design IP portfolio includes serializer/deserializer peripheral component interconnect USB and other standard protocols; and Secure-IC a solution for embedded security IP. Additionally it provides System Design and Analysis (SD&A) platform a solution that enables end-to-end system-level design and verification across chips packages PCBs and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer Reality digital twin and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose California.
EV: $98.75(B)
Total Equity: $6.86(B)
Debt/Equity: 0.39
Dividend/share: $0.0
Div. yield: 0.00%
P/E: 70.24
Forward P/E: 43.75
P/FCF: 58.38
P/S: 16.59
P/B: 14.30
EPS: $5.1
EPS (fwd): $8.1
FCF/share: $6.1
Revenue/share: $21.5
Book value/share: $24.9
ROIC: 14.1%
ROA: 11.3%
ROE: 21.7%
Margins: Gross | Op. | Net
85.9% | 31.5% | 23.6%
0.0%of Portfolio
My holdings
Day change
Total change
Overview Valuation Growth Financials & KPIsCompetitors & Peer Comparison Ownership ToolsAll
PEvaluation
62%
$137
Based on a fair P/E of 15.4x and
forward EPS of $8.92
Valuation summary
Min—
Max—
Average—
Median—
Valuation comparison
Current price$356
Quality checklist score
8/8
Based on your selected metrics.
5Y Shares Out Change < 0% ROIC > 10% Debt/Equity < 1 Current Ratio > 1 Quick Ratio > 1 Net Margin > 10% Past Net Income CAGR > 0% Est. EPS Growth > 5%
All selected metrics are passing.

TTM Financials

Income (TTM)

RevenueGrossNet
Revenue$5.84(B)
Gross profit$5.01(B)
EBITDA$2.16(B)
Net income$1.38(B)
Gross margin85.9%
Operating margin31.5%
Net margin23.6%
Shares outstanding275.39(M)

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$12.08(B)
Current assets$3.22(B)
Total liabilities$5.22(B)
Current liabilities$1.85(B)
Cash & Short-term inv.$1.53(B)
Long-term debt$2.48(B)
Total intangibles$6.79(B)
PP&E$560.16(M)

Cash flow (TTM)

CFOCFICFF
FCF$1.68(B)
CapEx$-176.17(M)
Dividends paid$0
Stock issued$156.42(M)
Stock repurchased$-1.02(B)
Stock-based comp.$514.31(M)
Debt issued$600.00(M)
Debt repaid$-600.00(M)

Per share data (TTM)

Price
Price
$356
Income
Revenue
$21.5•16.6x|6.0%
Gross profit
$18.2•19.6x|5.1%
Earnings (EPS)
$5.07•70.2x|1.4%
Cash flow
FCF
$6.10•58.4x|1.7%
Stock-based comp.
$1.87•190.7x|0.5%
CapEx
$0.64•556.7x|0.2%
Dividend
$0.00•—|0.0%
Balance sheet
Total assets
$43.9•8.1x|12.3%
Total liabilities
$19.0•18.8x|5.3%
Book value
$24.9•14.3x|7.0%
Cash & ST inv.
$5.56•64.0x|1.6%
Debt
$9.01•39.5x|2.5%
Forward earnings
EPS FY+1
$8.14•43.7x|2.3%
EPS FY+2
$9.56•37.3x|2.7%
EPS FY+3
$11.2•31.9x|3.1%
EPS FY+4
$11.3•31.6x|3.2%
EPS FY+5
$11.8•30.3x|3.3%
Forward FCF
FCF FY+1
$6.41•55.5x|1.8%
FCF FY+2
$8.40•42.4x|2.4%
FCF FY+3
$9.73•36.6x|2.7%
FCF FY+4
$10.6•33.6x|3.0%
FCF FY+5
$10.5•33.8x|3.0%

Summary

CDNS Valuation & Price Targets

Favorite Valuation Methods

PEvaluation
—
Analyst targets
—
DCF (2-stage)
—

More Valuation Methods

DCF (simple)
—
DCF (exit mult.)
—
DDM
—
EPS growth
—
Revenue growth
—
Peter Lynch FV
—
Graham No.
—

PEvaluation

CURRENT PRICE
$356
62% Overvalued
BEAR
$103
71%
BASE
$137
62%
BULL
$171
52%
Fair P/E
Margin of safety
EPS
Market Model
ROICRevenue growthFCF MarginShares outstan...Debt/EquityDebt/EBITDA
Economic moat: None/narrow

EPS Estimates

LowAvgHigh#
FY+18.18.18.324
FY+28.89.610.125
FY+39.311.212.014
FY+410.211.312.33
FY+510.911.812.62

Analyst Price Targets

CURRENT PRICE
$356
15% Undervalued
BEAR
$300
16%
BASE
$408
15%
BULL
$470
32%

Analyst Recommendations

Strong Buy5
Buy18
Hold2
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
Low
Mid
High
Terminal Growth Rate
Low
Mid
High
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
Low
Mid
High
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years
Exit FCF Multiple
Low
Mid
High
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years
First Stage Growth Rate
Low
Mid
High
Final Growth Rate
Low
Mid
High
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
Low
Mid
High
Final P/E
Low
Mid
High
Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years
Base Revenue
Revenue Growth Rate
Low
Mid
High
Final Net Margin
Low
Mid
High
Final P/E Ratio
Low
Mid
High
Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate
Low
Mid
High

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Low
Mid
High
Government Bond Rate

Growth Estimates

Revenue

CAGR10.1%
TTMFY+1FY+2FY+3FY+4FY+5
TTM
$5.84(B)
FY+1
23
8%
$6.32(B)
FY+2
25
13%
$7.17(B)
FY+3
15
13%
$8.10(B)
FY+4
3
8%
$8.71(B)
FY+5
2
8%
$9.44(B)

Net Income

CAGR19.3%
TTMFY+1FY+2FY+3FY+4FY+5
TTM
$1.38(B)
FY+1
20
63%
$2.25(B)
FY+2
21
18%
$2.65(B)
FY+3
13
16%
$3.07(B)
FY+4
2
1%
$3.03(B)
FY+5
2
10%
$3.34(B)

EPS

CAGR18.3%
TTMFY+1FY+2FY+3FY+4FY+5
TTM
$5.07
FY+1
24
61%
$8.14
FY+2
25
17%
$9.56
FY+3
14
17%
$11.15
FY+4
3
1%
$11.27
FY+5
2
4%
$11.76

FCF per share

CAGR11.6%
TTMFY+1FY+2FY+3FY+4FY+5
TTM
$6.10
FY+1
10
5%
$6.41
FY+2
9
31%
$8.40
FY+3
7
16%
$9.73
FY+4
3
9%
$10.58
FY+5
2
0%
$10.55

Historical Financials (in USD)

Income(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.01.0(B)2.0(B)3.0(B)4.0(B)5.0(B)
Revenue Operating Income Net IncomeCOGSGross ProfitTotal OpEx.R&DSG&AInterest ExpenseInterest IncomeOther Non-operating IncomePre-tax incomeIncome tax
Cash flow(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.0200.0(M)400.0(M)600.0(M)800.0(M)1.0(B)1.2(B)1.4(B)
Stock-based Comp. FCFCFONet IncomeD&AChange in Working CapitalCFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures
Balance sheet(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.02.0(B)4.0(B)6.0(B)8.0(B)
Total Assets Total LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EIntangible AssetsGoodwillCurrent liabilitiesShort-Term DebtAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity
Per share data(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.01.02.03.04.05.0
EPS (Basic) FCF/Share Dividend/ShareEPS (Diluted)Book value/ShareCash & ST inv./ShareDebt/Share
Ratios(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.020.040.060.0
P/E P/S EV/EarningsP/FCFP/BDebt/EquityPayout ratio
Margins(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0%20%40%60%80%
Net Income Margin Operating Margin Gross MarginEBITDA Margin
Returns(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0%10%20%30%
ROIC ROAROCEROE
Shares outstanding(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.050.0(M)100.0(M)150.0(M)200.0(M)250.0(M)
Shares (Basic)Shares (Diluted)
Market Cap.(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.020.0(B)40.0(B)60.0(B)80.0(B)
Market Cap.

KPIs

Revenue Segments As A Percent Of Total Revenue(show more...)
3/20246/20249/202412/20243/20256/20259/202512/20253/20266/2026
Core EDA System Design and Analysis IP
Revenue By Geography(show more...)
12/20233/20246/20249/202412/20243/20256/20259/202512/20253/2026
Americas EMEA Asia Japan

CDNS vs Peers

Similar Companies

Ownership

Major holders

*Excludes indirect insider ownership

Insiders: 0.33%
Institutions: 91.61%
Other: 8.06%

Institutional ownership

9.68% Blackrock Inc.6.54% Vanguard Capital Manag...4.73% State Street Corporati...3.47% FMR, LLC3.26% Invesco Ltd.2.86% JPMORGAN CHASE & CO2.61% Geode Capital Manageme...2.53% Vanguard Portfolio Man...1.78% Van Eck Associates Cor...1.77% Capital International ...52.38% Others

Trading Summary

In the past year, insiders have sold a net of $105.80(M).

Total insider buys: $0.00
Total insider sells: $105.80(M)

In the past year, Congress members have sold a net of $7502.

Total congressional buys (avg): $32501
Total congressional sells (avg): $40003

Based on the reported ranges: buys $15001–$50000, sells $5005–$75000.

Insider transactions

$0.002026-11$0.00
$0.002026-10$0.00
$0.002026-09$0.00
$2.63(M)2026-08$0.00
$2.29(M)2026-07$0.00
$36.80(M)2026-06$0.00
$27.24(M)2026-05$0.00
$6.93(M)2026-04$0.00
$3508852026-03$0.00
$2950902026-02$0.00
$2.33(M)2026-01$0.00
$19.91(M)2025-12$0.00
$4.04(M)2025-11$0.00
DateSharesTotal ($)Price ($)NameTitle
Sell2026-08-2628094,920339.0SCANNELL PAULOfficer
Grant2026-08-251,00000.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-08-251,250401,095320.9SANGIOVANNI VINCENTELLI ALBERTODirector
Sell2026-08-214,7321,488,167314.5TENG CHIN-CHIOfficer
Grant2026-08-211,000202,940202.9TENG CHIN-CHIOfficer
Sell2026-08-172,000646,640323.3CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-08-171,000138,020138.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-07-30900.0SOHN YOUNG KDirector
Sell2026-07-224,5001,527,555339.5TENG CHIN-CHIOfficer
Grant2026-07-221,000202,940202.9TENG CHIN-CHIOfficer
Sell2026-07-152,000766,720383.4CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-07-151,000138,020138.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-06-224,5001,731,970384.9TENG CHIN-CHIOfficer
Grant2026-06-221,000202,940202.9TENG CHIN-CHIOfficer
Sell2026-06-152,000782,000391.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-06-151,000138,020138.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-06-111,511576,205381.3PLUMMER JAMES DDirector
Sell2026-06-1018069,740387.4BRENNAN ITA MDirector
Sell2026-06-0276,82730,846,765401.5DEVGAN ANIRUDHChief Executive Officer
Sell2026-06-017,0812,789,277393.9SCANNELL PAULOfficer
Grant2026-06-017,0812,019,430285.2SCANNELL PAULOfficer
Grant2026-06-0126,8212,112,42278.8DEVGAN ANIRUDHChief Executive Officer
Sell2026-05-2251,88719,198,190370.0DEVGAN ANIRUDHChief Executive Officer
Sell2026-05-224,5001,662,087369.4TENG CHIN-CHIOfficer
Grant2026-05-221,000202,940202.9TENG CHIN-CHIOfficer
Grant2026-05-2225,0001,969,00078.8DEVGAN ANIRUDHChief Executive Officer
Sell2026-05-181,071369,559345.1SCANNELL PAULOfficer
Sell2026-05-181,071369,559345.1SCANNELL PAULOfficer
Grant2026-05-0771400.0PLUMMER JAMES DDirector
Grant2026-05-0771400.0GAVRIELOV MOSHE NACHUMDirector
Grant2026-05-0771400.0LIUSON JULIADirector
Grant2026-05-0771400.0VAN DEN HOVE LUCDirector
Grant2026-05-0771400.0BRENNAN ITA MDirector
Grant2026-05-0771400.0KRAKAUER MARY LOUISEDirector
Grant2026-05-0771400.0ADAMS MARK WDirector
Grant2026-05-0771400.0SOHN YOUNG KDirector
Grant2026-05-0771400.0CHEW LEWISDirector
Grant2026-05-0771400.0SANGIOVANNI VINCENTELLI ALBERTODirector
Grant2026-05-0777900.0ADAMS MARK WDirector
Grant2026-05-0777900.0PLUMMER JAMES DDirector
Grant2026-05-067225,553354.9SOHN YOUNG KDirector
Sell2026-05-055,0001,743,564348.7WALL JOHN MChief Financial Officer
Sell2026-05-0110,5003,559,500339.0SCANNELL PAULOfficer
Sell2026-05-011,000337,490337.5CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-04-1621,5006,653,175309.4WALL JOHN MChief Financial Officer
Sell2026-04-011,000280,190280.2CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-03-1846,39600.0TENG CHIN-CHIOfficer
Grant2026-03-1846,39600.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-03-1816,32600.0SCANNELL PAULOfficer
Grant2026-03-186,43300.0TAXAY MARCGeneral Counsel
Grant2026-03-1851,65500.0WALL JOHN MChief Financial Officer
Grant2026-03-18190,16700.0DEVGAN ANIRUDHChief Executive Officer
Sell2026-03-1718053,105295.0BRENNAN ITA MDirector
Grant2026-03-1613,38600.0TENG CHIN-CHIOfficer
Grant2026-03-1613,38600.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2026-03-1613,94300.0SCANNELL PAULOfficer
Grant2026-03-168,36600.0TAXAY MARCGeneral Counsel
Grant2026-03-1615,61600.0WALL JOHN MChief Financial Officer
Grant2026-03-1640,56200.0DEVGAN ANIRUDHChief Executive Officer
Sell2026-03-021,000297,780297.8CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-02-021,000295,090295.1CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-01-21257,898315.9GAVRIELOV MOSHE NACHUMDirector
Sell2026-01-086,3192,009,189318.0TENG CHIN-CHIOfficer
Grant2026-01-083,000236,28078.8TENG CHIN-CHIOfficer
Sell2026-01-021,000315,700315.7CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-12-3126500.0VAN DEN HOVE LUCDirector
Sell2025-12-1627,8058,857,772318.6WALL JOHN MChief Financial Officer
Grant2025-12-1627,8054,847,286174.3WALL JOHN MChief Financial Officer
Sell2025-12-1018060,747337.5BRENNAN ITA MDirector
Sell2025-12-105,4901,863,495339.4SCANNELL PAULOfficer
Sell2025-12-085,9772,020,166338.0TENG CHIN-CHIOfficer
Grant2025-12-082,677369,489138.0TENG CHIN-CHIOfficer
Sell2025-12-0520,0006,800,000340.0DEVGAN ANIRUDHChief Executive Officer
Grant2025-12-0520,0001,575,20078.8DEVGAN ANIRUDHChief Executive Officer
Sell2025-12-011,000312,640312.6CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-11-065,8001,884,652324.9TENG CHIN-CHIOfficer
Grant2025-11-062,400212,72888.6TENG CHIN-CHIOfficer
Sell2025-11-055,5501,819,280327.8DEVGAN ANIRUDHChief Executive Officer
Sell2025-11-031,000340,260340.3CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-10-313000.0DEVGAN ANIRUDHChief Executive Officer
Sell2025-10-011,000348,270348.3CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-09-307,5002,618,670349.2WALL JOHN MChief Financial Officer

Congressional trading

$0.002026-11$0.00
$0.002026-10$0.00
$0.002026-09$0.00
$0.002026-08$0.00
$0.002026-07$0.00
$0.002026-06$0.00
$0.002026-05$0.00
$0.002026-04$0.00
$0.002026-03$0.00
$0.002026-02$0.00
$80012026-01$32501
$0.002025-12$0.00
$80012025-11$0.00
DatePoliticianPartyChamberAmount ($)
Buy2026-01-29Ro KhannaDHouse$15,001 - $50,000
Sell2026-01-06Ro KhannaDHouse$1,001 - $15,000
Sell2025-11-03Ro KhannaDHouse$1,001 - $15,000
Sell2025-10-27Michael T. McCaulRHouse$1,001 - $15,000
Sell2025-09-23Val T. HoyleDHouse$1,001 - $15,000
Sell2025-09-23Val T. HoyleDHouse$1,001 - $15,000

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