Cadence Design Systems, Inc.

NasdaqGS:CDNS Stock Report

Market Cap: US$82.8b

Cadence Design Systems Valuation

Is CDNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CDNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CDNS ($301.25) is trading above our estimate of fair value ($227.21)

Significantly Below Fair Value: CDNS is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CDNS?

Other financial metrics that can be useful for relative valuation.

CDNS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue19x
Enterprise Value/EBITDA57x
PEG Ratio4.8x

Price to Earnings Ratio vs Peers

How does CDNS's PE Ratio compare to its peers?

The above table shows the PE ratio for CDNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.2x
SNPS Synopsys
57.1x13.2%US$88.1b
ADSK Autodesk
62.2x16.0%US$65.7b
WDAY Workday
43.9x13.1%US$68.1b
ROP Roper Technologies
41.6x10.7%US$61.4b
CDNS Cadence Design Systems
79.5x16.6%US$82.8b

Price-To-Earnings vs Peers: CDNS is expensive based on its Price-To-Earnings Ratio (79.5x) compared to the peer average (51.2x).

Price to Earnings Ratio vs Industry

How does CDNS's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CDNS is expensive based on its Price-To-Earnings Ratio (79.5x) compared to the US Software industry average (40.6x).

Price to Earnings Ratio vs Fair Ratio

What is CDNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CDNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio79.5x
Fair PE Ratio46.7x

Price-To-Earnings vs Fair Ratio: CDNS is expensive based on its Price-To-Earnings Ratio (79.5x) compared to the estimated Fair Price-To-Earnings Ratio (46.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CDNS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$301.25
US$307.35
+2.0%
11.3%US$355.00US$225.00n/a18
Nov ’25US$282.09
US$307.42
+9.0%
11.3%US$355.00US$225.00n/a18
Oct ’25US$263.32
US$310.72
+18.0%
12.4%US$355.00US$225.00n/a16
Sep ’25US$268.93
US$317.77
+18.2%
10.6%US$355.00US$240.00n/a15
Aug ’25US$260.81
US$319.16
+22.4%
10.3%US$355.00US$240.00n/a16
Jul ’25US$310.92
US$324.86
+4.5%
8.9%US$355.00US$240.00n/a17
Jun ’25US$286.31
US$324.43
+13.3%
8.9%US$350.00US$240.00n/a17
May ’25US$274.55
US$323.23
+17.7%
8.5%US$350.00US$240.00n/a18
Apr ’25US$312.13
US$316.89
+1.5%
8.4%US$350.00US$240.00n/a17
Mar ’25US$315.24
US$316.89
+0.5%
8.4%US$350.00US$240.00n/a17
Feb ’25US$290.52
US$287.38
-1.1%
10.8%US$326.00US$209.00n/a13
Jan ’25US$272.37
US$277.29
+1.8%
9.7%US$315.00US$209.00n/a15
Dec ’24US$270.35
US$270.96
+0.2%
9.3%US$307.00US$209.00n/a16
Nov ’24US$244.88
US$270.96
+10.6%
9.3%US$307.00US$209.00US$282.0916
Oct ’24US$234.30
US$256.83
+9.6%
11.6%US$300.00US$161.00US$263.3216
Sep ’24US$243.56
US$255.58
+4.9%
11.3%US$300.00US$161.00US$268.9316
Aug ’24US$233.63
US$255.58
+9.4%
11.3%US$300.00US$161.00US$260.8116
Jul ’24US$234.52
US$229.78
-2.0%
10.0%US$260.00US$161.00US$310.9216
Jun ’24US$232.39
US$224.43
-3.4%
9.0%US$248.00US$161.00US$286.3115
May ’24US$210.65
US$221.00
+4.9%
8.8%US$240.00US$161.00US$274.5515
Apr ’24US$210.09
US$211.40
+0.6%
7.9%US$235.00US$161.00US$312.1315
Mar ’24US$191.43
US$211.40
+10.4%
7.9%US$235.00US$161.00US$315.2415
Feb ’24US$188.89
US$191.63
+1.4%
8.3%US$215.00US$161.00US$290.5215
Jan ’24US$160.64
US$189.63
+18.0%
8.8%US$215.00US$161.00US$272.3715
Dec ’23US$176.78
US$187.76
+6.2%
8.3%US$215.00US$161.00US$270.3515
Nov ’23US$150.93
US$187.76
+24.4%
8.3%US$215.00US$161.00US$244.8815

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y