How does 0HS2's PE Ratio compare to its peers?

0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the peer average (51.1x).

How does 0HS2's PE Ratio compare vs other companies in the GB Software Industry?

0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the UK Software industry average (35.8x).

What is 0HS2'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.

0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the estimated Fair Price-To-Earnings Ratio (63.9x).

What is the Fair Price of 0HS2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

0HS2 ($313.09) is trading above our estimate of [[fair value]] ($230.02)

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

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

Cadence Design Systems (LSE:0HS2) - Stock Price, News & Analysis

0HS2 Stock Overview

Provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. More details

0HS2 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

Rewards

Earnings are forecast to grow 16.4% per year

Earnings have grown 5.9% per year over the past 5 years

Risk Analysis

No risks detected for 0HS2 from our risk checks.

Cadence Design Systems, Inc. Competitors

Sage Group

LSE:SGE

UK£12.8b

Bytes Technology Group

LSE:BYIT

UK£1.1b

GB Group

AIM:GBG

UK£932.8m

Alfa Financial Software Holdings

LSE:ALFA

UK£643.4m

Price History & Performance

Summary of all time highs, changes and price drops for Cadence Design Systems
Historical stock prices
Current Share Price	US$313.09
52 Week High	US$329.00
52 Week Low	US$226.00
Beta	1.02
11 Month Change	21.57%
3 Month Change	18.04%
1 Year Change	15.70%
33 Year Change	70.65%
5 Year Change	360.22%
Change since IPO	583.60%

Recent updates

Shareholder Returns

	0HS2	GB Software	GB Market
7D	8.4%	12.4%	2.2%
1Y	15.7%	13.5%	8.0%

Return vs Industry: 0HS2 exceeded the UK Software industry which returned 13.5% over the past year.

Return vs Market: 0HS2 exceeded the UK Market which returned 8% over the past year.

Price Volatility

Is 0HS2's price volatile compared to industry and market?
0HS2 volatility
0HS2 Average Weekly Movement	5.7%
Software Industry Average Movement	5.8%
Market Average Movement	4.8%
10% most volatile stocks in GB Market	10.3%
10% least volatile stocks in GB Market	2.6%

Stable Share Price: 0HS2 has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: 0HS2's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	11,200	Anirudh Devgan	www.cadence.com

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.

Cadence Design Systems, Inc. Fundamentals Summary

How do Cadence Design Systems's earnings and revenue compare to its market cap?
0HS2 fundamental statistics
Market cap	US$85.53b
Earnings (TTM)	US$1.04b
Revenue (TTM)	US$4.35b

82.3x

P/E Ratio

19.6x

P/S Ratio

Is 0HS2 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
0HS2 income statement (TTM)
Revenue	US$4.35b
Cost of Revenue	US$531.64m
Gross Profit	US$3.82b
Other Expenses	US$2.78b
Earnings	US$1.04b

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	3.79
Gross Margin	87.79%
Net Profit Margin	23.87%
Debt/Equity Ratio	61.9%

How did 0HS2 perform over the long term?

See historical performance and comparison

0HS2 Stock Overview

Rewards

Risk Analysis

Cadence Design Systems, Inc. Competitors

LSE:SGE

UK£12.8b

LSE:BYIT

UK£1.1b

AIM:GBG

UK£932.8m

LSE:ALFA

UK£643.4m

Price History & Performance

Recent News & Updates

Now 6.8% overvalued

Third quarter 2024 earnings released: EPS: US$0.88 (vs US$0.94 in 3Q 2023)

Cadence Design Systems, Inc. Provides Unaudited Financial Guidance for the Fourth Quarter and Full Year Ending December 31, 2024

Altair Engineering Reportedly Explores Sale After Acquisition Interest

Now 21% undervalued after recent price drop

Insufficient new directors

Recent updates

Now 6.8% overvalued

Third quarter 2024 earnings released: EPS: US$0.88 (vs US$0.94 in 3Q 2023)

Cadence Design Systems, Inc. Provides Unaudited Financial Guidance for the Fourth Quarter and Full Year Ending December 31, 2024

Altair Engineering Reportedly Explores Sale After Acquisition Interest

Now 21% undervalued after recent price drop

Insufficient new directors

Now 23% undervalued after recent price drop

Second quarter 2024 earnings released: EPS: US$0.85 (vs US$0.82 in 2Q 2023)

Cadence Design Systems, Inc. Provides Earnings Guidance for the Third Quarter and Full Year of 2024

Cadence Design Systems, Inc. to Report Q2, 2024 Results on Jul 22, 2024

Cadence Design Systems, Inc. Expands System IP Portfolio with Network on Chip to Optimize Electronic System Connectivity

Cadence Design Systems, Inc. (NasdaqGS:CDNS) completed the acquisition of BETA CAE Systems International AG.

First quarter 2024 earnings released: EPS: US$0.92 (vs US$0.90 in 1Q 2023)

Cadence Design Systems, Inc. to Report Q1, 2024 Results on Apr 22, 2024

Cadence Design Systems, Inc., Annual General Meeting, May 02, 2024

Cadence Design Systems, Inc. (NasdaqGS:CDNS) entered into a share purchase agreement to acquire BETA CAE Systems International AG for $1.2 billion.

Cadence Design Systems, Inc. (NasdaqGS:CDNS) entered into a share purchase agreement to acquire BETA CAE Systems International AG for $1.2 billion.

Cadence Design Systems, Inc. Provides Earnings Guidance for the First Quarter and Fiscal Year 2024

Full year 2023 earnings released: EPS: US$3.87 (vs US$3.13 in FY 2022)

John B. Shoven to Retire from the Board of Cadence Design Systems, Inc

Cadence Design Systems, Inc. Announces the Cadence Millennium Enterprise Multiphysics Platform

Cadence Design Systems, Inc. Significantly Advances ECAD/MCAD Convergence for Electronic Systems with New Celsius Studio AI Thermal Platform

Cadence Design Systems, Inc. (NasdaqGS:CDNS) acquired INVECAS Inc.

Cadence Design Systems, Inc. Announces Voltus InsightAI, Industry’s First Generative AI Technology that Automatically Identifies and Addresses EM-IR Violations

Cadence Design Systems, Inc. Expands Tensilica Ip Portfolio with New Hifi and Vision Dsps for Pervasive Intelligence and Edge Ai Inference

Third quarter 2023 earnings released: EPS: US$0.94 (vs US$0.69 in 3Q 2022)

Cadence Design Systems, Inc. Expands Support for 3Dblox 2.0 Standard with New System Prototyping Flows

Cadence Design Systems, Inc. Announces the Expansion of its Node-to-Node Design Migration Flow Based on the Cadence Virtuoso Studio

Cadence Design Systems, Inc. (NasdaqGS:CDNS) entered into a definitive agreement to acquire Intrinsix Corp. from CEVA, Inc. (NasdaqGS:CEVA) for $31.3 million.

Cadence Design Systems, Inc. Accelerates On-Device and Edge AI Performance and Efficiency with New Neo NPU IP and NeuroWeave SDK for Silicon Design

Cadence Design Systems, Inc. Unveils Next-Generation Ai-Driven Orcad X Delivering Up to 5X Faster Pcb Design and Enabled with Cadence Oncloud

Cadence Design Systems, Inc. (NasdaqGS:CDNS) completed the acquisition of Rambus SerDes and memory interface PHY IP business from Rambus Inc. (NasdaqGS:RMBS).

Independent Director recently sold US$2.0m worth of stock

Cadence Design Systems, Inc. Advances Pervasive Intelligence at the Edge with Next-Generation Extensible Tensilica Processor Platform

Independent Director recently sold US$1.1m worth of stock

Cadence Design Systems, Inc. Provides Earnings Guidance for the Second Half and Full Year of Fiscal Year Ending December 31, 2023

Second quarter 2023 earnings released: EPS: US$0.82 (vs US$0.69 in 2Q 2022)

Cadence Design Systems, Inc. Unveils Joules RTL Design Studio, Delivering Breakthrough Gains in RTL Productivity and Quality of Results

Cadence Design Systems, Inc. to Report Q2, 2023 Results on Jul 24, 2023

Cadence Design Systems, Inc. Announces AI-Based Virtuoso Studio Certified for Samsung Foundry PDKs for Mature and Advanced Nodes

Cadence Design Systems, Inc. (NasdaqGS:CDNS) announces an Equity Buyback for $200 million worth of its shares.

Cadence Design Systems, Inc. (NasdaqGS:CDNS) acquired Pulsic Limited.

First quarter 2023 earnings released: EPS: US$0.90 (vs US$0.86 in 1Q 2022)

Independent Director recently sold US$1.9m worth of stock

Cadence Design Systems, Inc. Delivers 13 New VIP and Expands System VIP Portfolio to Accelerate Automotive, Hyperscale Data Center and Mobile SoC Verification

Full year 2022 earnings released: EPS: US$3.13 (vs US$2.55 in FY 2021)

Cadence Design Systems, Inc. Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2023

Cadence Quantus FS Solution Achieves Certification for Samsung Foundry’s SF4, SF3E and SF3 Process Technologies

Tachyum Announces Amicable Settlement with Cadence Design Systems, Inc

Independent Director recently sold US$1.3m worth of stock

High number of new directors

Cadence Design Systems, Inc. Introduces Industry’s Leading-Performance, Silicon-Proven 22Gbps GDDR6 IP at TSMC N5

Investor sentiment improved over the past week

Cadence Design Systems, Inc. Accelerates RF Design with Delivery of New TSMC N16 mmWave Reference Flow

Third quarter 2022 earnings released: EPS: US$0.69 (vs US$0.65 in 3Q 2021)

Cadence Design Systems, Inc. Provides Earnings Guidance for the Fourth Quarter and Fiscal Year 2022

Cadence Design Systems, Inc. Announces the New Cadence Certus Closure Solution

Cadence Design Systems, Inc. Announced the Cadence Verisium Artificial Intelligence (A-Driven Verification Platform

Cadence Design Systems, Inc. (NasdaqGS:CDNS) completed the acquisition of OpenEye Scientific Software, Inc.