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Cadence Design Systems Inc.
CDNS
315.60 (-0.06%) 0.19
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.

Quality Checklist 8/8

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%
0.0%of Portfolio

My holdings

Day change:
Total change:
Shares:
Cost basis:
Market cap: $85.91(B)
EV: $85.46(B)
Total Equity: $5.20(B)
Earnings date: Feb-17-2026
P/E: 80.72
Forward P/E: 44.83
P/FCF: 58.12
P/S: 16.45
P/B: 16.52
EPS: $3.9
EPS (fwd): $7.0
FCF/share: $5.4
Revenue/share: $19.2
Book value/share: $19.1
ROIC: 14.1%
ROA: 11.3%
ROE: 21.7%
Debt/Equity: 0.48
Current Ratio: 3.00
Gross margin: 85.5%
Operating margin: 31.5%
Net margin: 20.3%
Dividend/share: $0.0
Div. yield: 0.00%

CDNS Valuation & Price Targets

Current Price
$316

Favorite Valuation Methods

More Valuation Methods

DCF (simple)
N/A
N/A
DCF (exit mult.)
N/A
N/A
DDM
N/A
N/A
EPS growth
N/A
N/A
Revenue growth
N/A
N/A
Peter Lynch FV
N/A
N/A
Graham No.
N/A
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PEvaluation

60% overvalued
Low
$96
Mid
$128
High
$160
Current price
$316
Fair P/E
Margin of safety
EPS
Market Model
ROICRevenue growthFCF MarginShares outstan...Debt/EquityDebt/EBITDA
Economic moat: None/narrow

EPS Estimates

LowAvgHigh#
FY+16.77.07.125
FY+27.58.18.625
FY+38.29.29.916
FY+48.89.910.63
FY+59.610.812.12

Analyst Price Targets

24% undervalued
Low
$275
Mid
$390
High
$418
Current price
$316

Analyst Recommendations

Strong Buy5
Buy16
Hold5
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh
Terminal Growth Rate
LowMidHigh
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
LowMidHigh
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
LowMidHigh
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
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
LowMidHigh
Final P/E
LowMidHigh
Discount Rate

Revenue Growth Valuation

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

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

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