Cadence Design Systems Valuation
Is 0HS2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation 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 0HS2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 0HS2 ($313.09) is trading above our estimate of fair value ($230.02)
Significantly Below Fair Value: 0HS2 is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 0HS2?
Key metric: As 0HS2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 0HS2's PE Ratio? | |
|---|---|
| PE Ratio | 82.3x |
| Earnings | US$1.04b |
| Market Cap | US$85.53b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 19.6x |
| Enterprise Value/EBITDA | 58.9x |
| PEG Ratio | 5x |
Price to Earnings Ratio vs Peers
How does 0HS2's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 51.1x | ||
SGE Sage Group | 39.6x | 11.9% | UK£12.8b |
BYIT Bytes Technology Group | 21.1x | 6.7% | UK£1.1b |
GBG GB Group | 114.6x | 36.6% | UK£932.8m |
ALFA Alfa Financial Software Holdings | 29.1x | 6.3% | UK£643.4m |
0HS2 Cadence Design Systems | 82.3x | 16.4% | US$85.5b |
Price-To-Earnings vs Peers: 0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the peer average (51.1x).
Price to Earnings Ratio vs Industry
How does 0HS2's PE Ratio compare vs other companies in the GB Software Industry?
| 1 Company | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
SORT Sorted Group Holdings | 3x | n/a | US$5.46m |
| 1 Company | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: 0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the UK Software industry average (35.8x).
Price to Earnings Ratio vs Fair Ratio
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 82.3x |
| Fair PE Ratio | 63.9x |
Price-To-Earnings vs Fair Ratio: 0HS2 is expensive based on its Price-To-Earnings Ratio (82.3x) compared to the estimated Fair Price-To-Earnings Ratio (63.9x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$313.09 | US$312.12 -0.3% | 11.5% | US$360.00 | US$225.00 | n/a | 20 |
| Nov ’25 | US$281.91 | US$307.42 +9.0% | 11.3% | US$355.00 | US$225.00 | n/a | 18 |
| Oct ’25 | US$266.52 | US$310.72 +16.6% | 12.4% | US$355.00 | US$225.00 | n/a | 16 |
| Sep ’25 | US$266.62 | US$317.77 +19.2% | 10.6% | US$355.00 | US$240.00 | n/a | 15 |
| Aug ’25 | US$260.82 | US$319.16 +22.4% | 10.3% | US$355.00 | US$240.00 | n/a | 16 |
| Jul ’25 | US$311.20 | US$324.86 +4.4% | 8.9% | US$355.00 | US$240.00 | n/a | 17 |
| Jun ’25 | US$279.63 | US$324.43 +16.0% | 8.9% | US$350.00 | US$240.00 | n/a | 17 |
| May ’25 | US$275.76 | US$323.23 +17.2% | 8.5% | US$350.00 | US$240.00 | n/a | 18 |
| Apr ’25 | US$312.17 | US$316.89 +1.5% | 8.4% | US$350.00 | US$240.00 | n/a | 17 |
| Mar ’25 | US$314.84 | US$316.89 +0.7% | 8.4% | US$350.00 | US$240.00 | n/a | 17 |
| Feb ’25 | US$290.09 | US$287.38 -0.9% | 10.8% | US$326.00 | US$209.00 | n/a | 13 |
| Jan ’25 | US$272.07 | US$277.29 +1.9% | 9.7% | US$315.00 | US$209.00 | n/a | 15 |
| Dec ’24 | US$270.23 | US$270.96 +0.3% | 9.3% | US$307.00 | US$209.00 | n/a | 16 |
| Nov ’24 | US$245.05 | US$270.96 +10.6% | 9.3% | US$307.00 | US$209.00 | US$281.91 | 16 |
| Oct ’24 | US$234.07 | US$256.83 +9.7% | 11.6% | US$300.00 | US$161.00 | US$266.52 | 16 |
| Sep ’24 | US$242.93 | US$255.58 +5.2% | 11.3% | US$300.00 | US$161.00 | US$266.62 | 16 |
| Aug ’24 | US$233.35 | US$255.58 +9.5% | 11.3% | US$300.00 | US$161.00 | US$260.82 | 16 |
| Jul ’24 | US$235.37 | US$229.78 -2.4% | 10.0% | US$260.00 | US$161.00 | US$311.20 | 16 |
| Jun ’24 | US$231.47 | US$224.43 -3.0% | 9.0% | US$248.00 | US$161.00 | US$279.63 | 15 |
| May ’24 | US$209.98 | US$221.00 +5.2% | 8.8% | US$240.00 | US$161.00 | US$275.76 | 15 |
| Apr ’24 | US$208.93 | US$211.40 +1.2% | 7.9% | US$235.00 | US$161.00 | US$312.17 | 15 |
| Mar ’24 | US$191.69 | US$211.40 +10.3% | 7.9% | US$235.00 | US$161.00 | US$314.84 | 15 |
| Feb ’24 | US$183.60 | US$191.63 +4.4% | 8.3% | US$215.00 | US$161.00 | US$290.09 | 15 |
| Jan ’24 | US$160.53 | US$189.63 +18.1% | 8.8% | US$215.00 | US$161.00 | US$272.07 | 15 |
| Dec ’23 | US$174.63 | US$187.76 +7.5% | 8.3% | US$215.00 | US$161.00 | US$270.23 | 15 |
| Nov ’23 | US$150.05 | US$187.76 +25.1% | 8.3% | US$215.00 | US$161.00 | US$245.05 | 15 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Kontron
€1.0b
Engages in the provision of internet of things (IoT) solutions in Austria and internationally.
0L9J
€16.88
7D
-3.8%
1Y
-25.4%
Truecaller
SEK 16.1b
Develops and publishes mobile caller ID applications for individuals and business in India, the Middle East, Africa, and internationally.
0AA7
SEK 46.72
7D
1.8%
1Y
63.7%
Computacenter
UK£2.3b
Provides technology and services to corporate and public sector organizations in the United Kingdom, Germany, France, North America, and internationally.
CCC
UK£22.28
7D
0.4%
1Y
-19.3%