Snapshot CDNS (Cadence) ESG Rating Top Monthly Gainer Value
NMS Β· Technology Β· Software - Application
$276.24
-2.82 (-1.01%)
CDNS Interactive Price Chart & Trading Signals
CDNS Stock Snapshot β Valuation, Risk & Technical Signals
CDNS Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$76.07B
P/E Ratio
55.03
Forward P/E
28.94
PEG Ratio
2.13
P/B Ratio
11.09
EPS
$5.02
Dividend Yield
β
52W Range
$262.75 β $416.69
Beta
1.14
Volume
0.8M
ROE
23.2%
Profit Margin
23.6%
Revenue Growth
24.2%
Gross Margin
85.9%
EV/EBITDA
36.17
Analyst Target
$402.12
The trailing price-to-earnings ratio stands at 55.0x. Forward P/E of 28.9x implies earnings expansion expected. Price-to-book is 11.09x. EV/EBITDA sits at 36.17x. Market capitalization is $76.07B. Revenue is growing at 24.2% on a trailing basis. Earnings are expanding at 125.4%. Profit margins are 23.6%. Return on equity is 23.2%. Beta of 1.14 indicates market-average volatility.
Analyst Consensus
Recommendation
Strong Buy
Low Target
$300.00
Mean Target
$402.12
High Target
$470.00
Based on 28 analysts
About Cadence
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.
CDNS Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
Growth-oriented investorsWatch out for
Premium valuationData confidence
HighCadence Design Systems, Inc. (CDNS) trades above our multi-model fair value estimate of $76.46 by approximately 72.3%. Trailing P/E: 55.0x. Profitability signals include profit margin of 23.6% and return on equity of 23.2%. Recent growth metrics show revenue growth of 24.2% and earnings growth of 125.4%. Risk profile: beta of 1.14. Consensus: strong_buy.
CDNS Deep Dive Analysis
Valuation
Overvalued
P/E 55.0x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 24.2%
Revenue is outpacing the market.
Valuation Snapshot
Cadence Design Systems, Inc. (CDNS) trades above our multi-model fair value estimate of $76.46 by approximately 72.3%. The trailing price-to-earnings ratio stands at 55.0x. Forward P/E of 28.9x suggests earnings compression ahead. Price-to-sales is 13.1x. Price-to-book is 11.1x. EV/EBITDA sits at 36.2x. Market capitalization is $76.07B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 24.2% on a trailing basis. Earnings are expanding at 125.4%. Profit margins are 23.6%. Return on equity is 23.2%. Return on assets is 10.6%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 1.14 indicates market-average volatility. Net debt position is $1.12B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $402.12 implies 45.6% upside. Target range spans $300.00 to $470.00. 28 analysts cover the stock. Consensus recommendation: strong_buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, market cap: Yahoo Finance (delayed ~5 min)
- P/E, EPS, revenue, debt: Yahoo Finance fundamentals
- Analyst targets: Yahoo Finance consensus (may lag)
- Insider trades: SEC EDGAR Form 4 filings
QuantSoar Model (Derived)
- Fair Value: 7-model consensus (DCF, Graham, P/E, P/S, DDM, EV/EBITDA, Div Yield) β trimmed inverse-variance weighted
- Margin of Safety = (Fair Value β Live Price) / Live Price Γ 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation(Β±25) + Whale(Β±10) + Macro(Β±10) + Technical(Β±10). Analyst consensus shown separately.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
CDNS Overvalued
Cadence Design Systems, Inc. (CDNS) trades above our multi-model fair value estimate of $76.46 by approximately 72.3%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) β Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: QuantSoar is for informational purposes only. We do not provide personalized investment advice. Always conduct your own research or consult a financial advisor. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.