Cadence Design Systems Inc.

CDNS

262.42 (1.52%) 3.98

71.93(B)

Information Technology

Software

Cadence Design Systems Inc. provides software hardware and other services worldwide. The company offers functional verification services such as Jasper a formal verification platform; Xcelium a parallel logic simulation platform; Palladium an enterprise emulation platform; and Protium a prototyping platform for chip verification. It also provides digital IC design and sign off products including Genus synthesis and Joules RTL power solutions as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools such as place and route optimization and performing sign-off checks for manufacturing; and Innovus implementation system a digital IC design and signoff solution. In addition the company offers custom IC design and simulation such as Virtuoso Studio a solution platform for custom analog mixed-signal photonics and RF semiconductors; and system design and analysis products a Multiphysics platform that helps in design and simulate electronics and entire systems in electromagnetic thermal structure computational fluid dynamics molecular PCB and packaging mechanical and structural analysis. Further it provides semiconductor IP product for design architectures; Functional Verification; digital ic design and signoff; EDA product that addresses the design and verification for semiconductor chips and manufacturing process technologies; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally it offers services related to methodology education and hosted design solutions as well as technical support and maintenance services. It serves consumer hyperscale computing 5G communications mobile automotive aerospace and defense industrial and life science industries. Cadence Design Systems Inc. was incorporated in 1987 and is headquartered in San Jose California.

Holdings:

Cost basis:

Valuation Overview Growth Estimates Per Share Data Similar Companies Historical Data Calculators

Cadence Design Systems Inc. (CDNS) price target and intrinsic value estimate

CDNS's fair price estimate is $124.1

This valuation is based on a fair P/E of 17.1 and EPS estimates of $7.26

The median analyst price target for CDNS is $335.0.

Analyst price targets range from $225.0 to $355.0

Is CDNS overvalued or undervalued?

CDNS is currently trading at $262.42

CDNS is overvalued by 111% using the pevaluation method.

CDNS is undervalued by 22% compared to median analyst price targets.

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Valuation

PEvaluation

Current price

$262

Overvalued

Low

$93

Median

$124

High

$155

Fair P/E

Margin of safety

Analyst valuation

Current price

$262

Fairly valued

Low

$225

Median

$335

High

$355

Strong Buy6

Buy13

Hold2

Sell1

Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates

TTM FCFFCF est.Growth FCFTerminal FCF

Discount
rate10%

Terminal
rate5%

Growth p.
length5y

Growth p.
rate10%

Economic moat: None/narrow

Overview

Market data

Market cap:$71.93(B)

Enterprise value:$71.77(B)

Total Equity:$4.67(B)

Shares outstanding:274.11(M)

Div. yield:0.00%

P/S:15.34

P/E:67.46

P/FCF:64.32

P/B:15.37

EPS:$3.9

FCF per share:$4.1

Dividend per share:$0.0

Income (TTM)

Revenue$4.64(B)

Gross profit$3.99(B)

EBITDA$1.59(B)

Net income$1.06(B)

Gross margin86.1%

Net margin22.7%

Balance sheet

Total assets$8.97(B)

Total liabilities$4.30(B)

Cash & Short-term inv.$2.78(B)

Long-term debt$2.48(B)

Debt issued$3.20(B)

Debt repaid$-1.35(B)

Cash flow (TTM)

FCF$1.12(B)

CapEx$-142.54(M)

Dividends paid$0

Stock issued$204.24(M)

Stock repurchased$-787.76(M)

Stock-based comp.$391.22(M)

Per Share Data

Zoom x1

Show Growth

Growth Estimates

Revenue

CAGR: 10.8%

FY+1$5.19(B)

FY+2$5.83(B)

FY+3$6.54(B)

FY+4$7.21(B)

FY+5$7.83(B)

Net Income

CAGR: 11.7%

FY+1$1.85(B)

FY+2$2.13(B)

FY+3$2.39(B)

FY+4$2.55(B)

FY+5$2.87(B)

EPS

CAGR: 11.4%

FY+1$6.74

FY+2$7.77

FY+3$8.78

FY+4$9.22

FY+5$10.37

FCF per share

CAGR: 32.7%

FY+1$5.88

FY+2$7.76

FY+3$10.35

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Historical Financials

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