Stock AnalizCadence Design Systems Inc. CDNS
Computer Software: Prepackaged Software · data as of November 13, 2026
Cadence Design Systems Inc. (CDNS) is a technology company listed in the US with a market value of about $88.6B. In the twelve months to September 30, 2026 it had revenue of $6.1B and net income of $1.4B, a net margin of 22.5%.
Its overall Stock Analiz score is 2.8 out of 5 (average). The strongest part is track record (5/5); the weakest is value (0/5).
Key numbers: a P/E of 64.2, a price to free cash flow of 50.3, 5-year revenue growth of 15% a year, a 5-year average ROIC of 20%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 52% below the current price.
Score: 2.8 / 5
Checks passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- ROE above 15%
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Profit margin improving
- Strong R&D investment or growth above 20%
- Pays a dividend
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.1B | $5.3B | $4.6B | $4.1B | $3.6B | $3.0B | $2.7B | $2.3B | $2.1B | $1.9B | $1.8B |
| Net income | $1.4B | $1.1B | $1.1B | $1.0B | $849M | $696M | $591M | $989M | $346M | $204M | $203M |
| Free cash flow | $1.8B | $1.6B | $1.1B | $1.2B | $1.1B | $1.0B | $810M | $655M | $543M | $413M | $391M |
| EPS (diluted) | $5.03 | $4.06 | $3.85 | $3.82 | $3.09 | $2.50 | $2.11 | $3.53 | $1.23 | $0.73 | $0.70 |
| Net margin | 22.5% | 20.9% | 22.7% | 25.5% | 23.8% | 23.3% | 22.0% | 42.3% | 16.2% | 10.5% | 11.2% |
| ROIC | — | 13.4% | 14.0% | 26.3% | 23.8% | 21.9% | 20.2% | 15.2% | 21.0% | 12.2% | 14.6% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 24 analysts is $411.76, 27% above the current price; targets range from $300.00 to $470.00; the consensus rating is “Strong buy”; expected EPS is $4.85 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Cadence Design Systems’s P/E ratio?
About 64.2, based on the last twelve months of diluted earnings per share (forward P/E about 34.4).
Is Cadence Design Systems stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 52% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Cadence Design Systems pay a dividend?
Not currently.
Is Cadence Design Systems a good stock to buy?
We do not give buy or sell advice. Cadence Design Systems scores 2.8 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.