Cadence Design Systems Valuation
Is CDNS * 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 CDNS * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CDNS * (MX$4690) is trading above our estimate of fair value (MX$3424.66)
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.
| What is CDNS *'s n/a Ratio? | |
|---|---|
| n/a | 0x |
| n/a | n/a |
| Market Cap | US$76.64b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 18.7x |
| Enterprise Value/EBITDA | 56x |
| PEG Ratio | 4.4x |
Price to Earnings Ratio vs Peers
How does CDNS *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 47.5x | ||
SNPS Synopsys | 59.1x | 14.0% | US$83.2b |
WDAY Workday | 48x | 13.9% | US$66.3b |
ROP Roper Technologies | 37.6x | 9.6% | US$55.2b |
DSY Dassault Systèmes | 45.2x | 13.9% | €48.9b |
CDNS * Cadence Design Systems | 74.1x | 16.7% | Mex$76.6b |
Price-To-Earnings vs Peers: CDNS * is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the peer average (47.4x).
Price to Earnings Ratio vs Industry
How does CDNS *'s PE Ratio compare vs other companies in the Global Software Industry?
Price-To-Earnings vs Industry: CDNS * is expensive based on its Price-To-Earnings Ratio (74.1x) compared to the Global Software industry average (33.5x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 74.1x |
| Fair PE Ratio | n/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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$4,690.00 | Mex$5,493.47 +17.1% | 8.7% | Mex$5,947.94 | Mex$4,078.58 | n/a | 17 |
| Apr ’25 | Mex$5,210.00 | Mex$5,418.30 +4.0% | 8.4% | Mex$5,984.37 | Mex$4,103.57 | n/a | 17 |
| Mar ’25 | Mex$5,197.00 | Mex$5,418.30 +4.3% | 8.4% | Mex$5,984.37 | Mex$4,103.57 | n/a | 17 |
| Feb ’25 | Mex$4,962.64 | Mex$4,931.15 -0.6% | 10.8% | Mex$5,593.74 | Mex$3,586.17 | n/a | 13 |
| Jan ’25 | n/a | Mex$4,760.43 0% | 9.7% | Mex$5,407.89 | Mex$3,588.09 | n/a | 15 |
| Dec ’24 | Mex$4,635.42 | Mex$4,940.24 +6.6% | 9.3% | Mex$5,597.41 | Mex$3,810.61 | n/a | 16 |
| Nov ’24 | Mex$4,172.00 | Mex$4,940.24 +18.4% | 9.3% | Mex$5,597.41 | Mex$3,810.61 | n/a | 16 |
| Oct ’24 | n/a | Mex$4,404.45 0% | 11.6% | Mex$5,144.76 | Mex$2,761.02 | n/a | 16 |
| Sep ’24 | Mex$4,143.97 | Mex$4,357.61 +5.2% | 11.3% | Mex$5,114.94 | Mex$2,745.02 | n/a | 16 |
| Aug ’24 | Mex$3,935.00 | Mex$4,263.45 +8.3% | 11.3% | Mex$5,004.42 | Mex$2,685.71 | n/a | 16 |
| Jul ’24 | Mex$3,896.08 | Mex$3,933.74 +1.0% | 10.0% | Mex$4,451.07 | Mex$2,756.24 | n/a | 16 |
| Jun ’24 | Mex$4,051.00 | Mex$3,955.61 -2.4% | 9.0% | Mex$4,370.98 | Mex$2,837.61 | n/a | 15 |
| May ’24 | Mex$3,775.60 | Mex$3,999.55 +5.9% | 8.8% | Mex$4,343.40 | Mex$2,913.70 | n/a | 15 |
| Apr ’24 | Mex$3,720.93 | Mex$3,884.28 +4.4% | 7.9% | Mex$4,317.91 | Mex$2,958.23 | Mex$5,210.00 | 15 |
| Mar ’24 | Mex$3,480.46 | Mex$3,884.28 +11.6% | 7.9% | Mex$4,317.91 | Mex$2,958.23 | Mex$5,197.00 | 15 |
| Feb ’24 | Mex$3,445.00 | Mex$3,578.49 +3.9% | 8.3% | Mex$4,014.97 | Mex$3,006.56 | Mex$4,962.64 | 15 |
| Jan ’24 | n/a | Mex$3,754.12 0% | 8.8% | Mex$4,256.44 | Mex$3,187.38 | n/a | 15 |
| Dec ’23 | Mex$3,132.00 | Mex$3,720.35 +18.8% | 8.3% | Mex$4,260.10 | Mex$3,190.12 | Mex$4,635.42 | 15 |
| Nov ’23 | Mex$2,945.00 | Mex$3,720.35 +26.3% | 8.3% | Mex$4,260.10 | Mex$3,190.12 | Mex$4,172.00 | 15 |
| Oct ’23 | Mex$3,347.00 | Mex$3,936.92 +17.6% | 7.4% | Mex$4,326.45 | Mex$3,159.31 | n/a | 14 |
| Sep ’23 | n/a | Mex$3,879.76 0% | 7.9% | Mex$4,279.51 | Mex$3,125.04 | Mex$4,143.97 | 12 |
| Aug ’23 | Mex$3,794.86 | Mex$3,850.00 +1.5% | 10.6% | Mex$4,365.98 | Mex$3,015.57 | Mex$3,935.00 | 11 |
| Jul ’23 | Mex$3,011.00 | Mex$3,676.99 +22.1% | 11.2% | Mex$4,328.14 | Mex$2,939.11 | Mex$3,896.08 | 13 |
| Jun ’23 | Mex$3,007.44 | Mex$3,618.86 +20.3% | 11.3% | Mex$4,289.34 | Mex$2,912.76 | Mex$4,051.00 | 14 |
| May ’23 | Mex$3,261.40 | Mex$3,755.89 +15.2% | 10.0% | Mex$4,383.91 | Mex$2,976.98 | Mex$3,775.60 | 14 |
Analyst Forecast: Target price is less than 20% higher than the current share price.