Cadence Design Systems Inc (CDNS) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Cadence Design Systems Inc stock (CDNS) is currently trading at $281.39. Cadence Design Systems Inc PE ratio is 69.86. Cadence Design Systems Inc PS ratio (Price-to-Sales) is 14.81. Analyst consensus price target for CDNS is $371.68. WallStSmart rates CDNS as Hold.
- CDNS PE ratio analysis and historical PE chart
- CDNS PS ratio (Price-to-Sales) history and trend
- CDNS intrinsic value — DCF, Graham Number, EPV models
- CDNS stock price prediction 2025 2026 2027 2028 2029 2030
- CDNS fair value vs current price
- CDNS insider transactions and insider buying
- Is CDNS undervalued or overvalued?
- Cadence Design Systems Inc financial analysis — revenue, earnings, cash flow
- CDNS Piotroski F-Score and Altman Z-Score
- CDNS analyst price target and Smart Rating
Cadence Design Systems Inc
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CDNS Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Cadence Design Systems Inc (CDNS)
CDNS trades 129% above its Graham fair value of $122.75, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Cadence Design Systems Inc (CDNS) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/sales and price/book. Fundamentals are solid but monitor weak areas for improvement.
Cadence Design Systems Inc (CDNS) Key Strengths (5)
Keeps $33 of every $100 in revenue after operating costs
Keeps $21 of every $100 in revenue as net profit
90.16% of shares held by major funds and institutions
Large-cap company with substantial market presence
Every $100 of equity generates $22 in profit
Supporting Valuation Data
Cadence Design Systems Inc (CDNS) Areas to Watch (5)
Very expensive at 14.8x annual revenue
Very expensive at 14.3x book value
Paying a premium for growth, expensive relative to earnings expansion
Modest revenue growth at 6.20%
Solid earnings growth at 14.60%
Supporting Valuation Data
Cadence Design Systems Inc (CDNS) Detailed Analysis Report
Overall Assessment
This company scores 62/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.6/10) while 5 fall into concern territory (avg 3.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Profit Margin, Institutional Own.. Profitability is solid with Return on Equity at 21.90%, Operating Margin at 32.80%, Profit Margin at 20.90%.
The Bear Case
The primary concerns are Price/Sales, Price/Book, PEG Ratio. Some valuation metrics including PEG Ratio (2.54), Price/Sales (14.81), Price/Book (14.31) suggest expensive pricing. Growth concerns include Revenue Growth at 6.20%, EPS Growth at 14.60%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 21.90% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 6.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Profit Margin) and negatives (Price/Sales, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CDNS Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CDNS's Price-to-Sales ratio of 14.81x trades 286% above its historical average of 3.84x (97th percentile), historically expensive. The current valuation is 5% below its historical high of 15.62x set in Mar 2026, and 2251% above its historical low of 0.63x in Dec 2008.
Compare CDNS with Competitors
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Data-driven financial summary for Cadence Design Systems Inc (CDNS) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Cadence Design Systems Inc is a mature, profitable business with steady cash generation. Revenue reached 5.3B with 6% growth year-over-year. Profit margins are strong at 20.9%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 21.9% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 20.9% and operating margin of 32.8% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Valuation compression risk at a P/E of 69.9x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Cadence Design Systems Inc.
Bottom Line
Cadence Design Systems Inc is a well-established business delivering consistent profitability with 20.9% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Cadence Design Systems Inc(CDNS)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company. The company produces software, hardware and silicon structures for designing integrated circuits, systems on chips (SoCs) and printed circuit boards.