Cadence Design Systems, Inc.

BOVESPA:C1DN34 Stock Report

Market Cap: R$502.6b

Cadence Design Systems Valuation

Is C1DN34 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 C1DN34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: C1DN34 (R$899.3) is trading above our estimate of fair value (R$474.58)

Significantly Below Fair Value: C1DN34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for C1DN34?

Key metric: As C1DN34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for C1DN34. This is calculated by dividing C1DN34's market cap by their current earnings.
What is C1DN34's PE Ratio?
PE Ratio80.4x
EarningsUS$1.04b
Market CapUS$83.56b

Price to Earnings Ratio vs Peers

How does C1DN34's PE Ratio compare to its peers?

The above table shows the PE ratio for C1DN34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average62.5x
SNPS Synopsys
55.7x12.7%US$84.1b
ADSK Autodesk
57.3x14.2%US$62.5b
WDAY Workday
41.3x10.6%US$66.9b
APP AppLovin
95.9x31.7%US$110.3b
C1DN34 Cadence Design Systems
80.4x16.4%R$83.6b

Price-To-Earnings vs Peers: C1DN34 is expensive based on its Price-To-Earnings Ratio (80.4x) compared to the peer average (62.5x).

Price to Earnings Ratio vs Industry

How does C1DN34's PE Ratio compare vs other companies in the Global Software Industry?

35 CompaniesPrice / EarningsEstimated GrowthMarket Cap
C1DN34 80.4xIndustry Avg. 32.0xNo. of Companies86PE020406080100+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: C1DN34 is expensive based on its Price-To-Earnings Ratio (80.4x) compared to the Global Software industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is C1DN34'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.

C1DN34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio80.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate C1DN34'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?

Analyst Forecast: Insufficient data to show price forecast.

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