Cadence Design Systems, Inc.

WBAG:CDNS Stock Report

Market Cap: €82.1b

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 (€298.5) is trading above our estimate of fair value (€226.68)

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?

Key metric: As CDNS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CDNS. This is calculated by dividing CDNS's market cap by their current earnings.
What is CDNS's PE Ratio?
PE Ratio82.3x
EarningsUS$1.04b
Market CapUS$85.53b

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 Average66.5x
SNPS Synopsys
57.4x12.7%US$86.8b
APP AppLovin
97.3x30.1%US$111.9b
ADSK Autodesk
65.4x15.7%US$69.1b
WDAY Workday
45.9x13.6%US$70.7b
CDNS Cadence Design Systems
82.3x16.4%€85.5b

Price-To-Earnings vs Peers: CDNS is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the peer average (66.5x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CDNS 82.3xIndustry Avg. 28.1xNo. of Companies19PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CDNS is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the European Software industry average (28.1x).

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 Ratio82.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CDNS's Price-To-Earnings Fair Ratio for valuation analysis.

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
Current€298.50
€299.72
+0.4%
11.5%€345.71€216.07n/a20
Nov ’25€259.20
€284.30
+9.7%
11.3%€328.30€208.08n/a18
Oct ’25€239.75
€278.03
+16.0%
12.4%€317.65€201.33n/a16
Sep ’25€241.70
€284.12
+17.5%
10.6%€317.41€214.58n/a15
Aug ’25€245.35
€294.23
+19.9%
10.3%€327.27€221.26n/a16
Jul ’25€289.40
€302.54
+4.5%
8.9%€330.61€223.51n/a17
Jun ’25€259.50
€300.39
+15.8%
8.9%€324.07€222.22n/a17
May ’25€260.80
€301.47
+15.6%
8.5%€326.45€223.85n/a18
Apr ’25€288.20
€292.43
+1.5%
8.4%€322.98€221.47n/a17
Mar ’25€289.00
€292.43
+1.2%
8.4%€322.98€221.47n/a17
Feb ’25€265.40
€265.05
-0.1%
10.8%€300.67€192.76n/a13
Jan ’25€247.20
€253.99
+2.7%
9.7%€288.54€191.44n/a15
Dec ’24€249.00
€255.81
+2.7%
9.3%€289.84€197.32n/a16
Nov ’24€230.20
€255.81
+11.1%
9.3%€289.84€197.32€259.2016
Oct ’24€223.00
€239.32
+7.3%
11.6%€279.54€150.02€239.7516
Sep ’24€225.80
€234.27
+3.7%
11.3%€274.98€147.57€241.7016
Aug ’24€213.00
€231.84
+8.8%
11.3%€272.13€146.04€245.3516
Jul ’24€214.00
€210.57
-1.6%
10.0%€238.26€147.54€289.4016
Jun ’24€215.60
€209.22
-3.0%
9.0%€231.19€150.08€259.5015
May ’24€186.40
€201.46
+8.1%
8.8%€218.78€146.77€260.8015
Apr ’24€192.32
€199.39
+3.7%
7.9%€221.65€151.86€288.2015
Mar ’24€179.70
€199.39
+11.0%
7.9%€221.65€151.86€289.0015
Feb ’24€168.32
€177.56
+5.5%
8.3%€199.22€149.18€265.4015
Jan ’24€150.18
€178.89
+19.1%
8.8%€202.83€151.89€247.2015
Dec ’23€167.32
€190.05
+13.6%
8.3%€217.62€162.96€249.0015
Nov ’23€152.30
€190.05
+24.8%
8.3%€217.62€162.96€230.2015

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

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