
Cadence Design Systems Inc.
CDNS 304.88 (-0.59%) 1.78
Market cap
$83.96(B)Earnings date
Oct-26-2026Category
Sector
Information TechnologyIndustry
SoftwareCadence 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: $88.57(B)
Total Equity: $6.86(B)
Debt/Equity: 0.39
Dividend/share: $0.0
Div. yield: 0.00%
P/E: 60.13
Forward P/E: 37.45
P/FCF: 49.98
P/S: 14.21
P/B: 12.24
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
PEvaluation
CURRENT PRICE
$305
55% Overvalued
BEAR
$103
66%
BASE
$137
55%
BULL
$171
44%
Fair P/E
Margin of safety
EPS
EPS Estimates
| Low | Avg | High | # | |
| FY+1 | 8.1 | 8.1 | 8.3 | 24 |
| FY+2 | 8.8 | 9.5 | 10.1 | 25 |
| FY+3 | 9.3 | 11.1 | 12.0 | 13 |
| FY+4 | 10.2 | 10.7 | 11.3 | 2 |
| FY+5 | 10.9 | 11.8 | 12.6 | 2 |
Analyst Price Targets
CURRENT PRICE
$305
33% Undervalued
BEAR
$300
2%
BASE
$405
33%
BULL
$470
54%
Analyst Recommendations
Strong Buy5
Buy17
Hold3
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 | |
x 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 | |
x 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 | |
x 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 | |
