CDNS
Cadence Design Systems, Inc.
$319.51
-1.50% 2026-10-16
Information TechnologyS&P 500
CDNSSPY
1W
-9.4%
1M
+14.2%
3M
-3.2%
6M
+2.7%
YTD
+2.2%
1Y
-1.5%
Grades vs sector
Momentum35th pct in sectorC-
Momentum
35th pct in sector
12-1 return: -2.5%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Growth66th pct in sectorB
Growth
66th pct in sector
Revenue growth (YoY): +24.2%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Value16th pct in sectorD
Value
16th pct in sector
Forward E/P: 3.0% · EBITDA/EV: 2.4%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Profitability76th pct in sectorB+
Profitability
76th pct in sector
Profit margin: +23.6% · Return on equity: +23.2%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Revisionsno data–
Revisions
no data
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.
30-day change in analysts' current-year EPS estimate; graded across covered stocks.
Our models
Not held by any of our 3 live models right now.
Momentum Top 15
rank 363 of 499 · 12-1 momentum % -3.5
Quality Growthnot ranked (outside this model's universe or screens)
Momentum Blendnot in the current book
Key stats
Market cap$88.0B
P/E (trailing)63.5
P/E (forward)33.4
52-week range262.75 – 416.69
Revenue growth (YoY, latest qtr)+24.2%
Dividend yield0.00%
Analyst consensusStrong Buy (26)
Mean price target$406.24 (+27%)
Valuation & fundamentals
Bottom line
Leans expensive
Model read-out from the numbers below, not advice. Score -2 (DCF counts double).
▼DCF (base case)below the price by 43%
▼Forward P/E vs sector33.4x vs median 16.9x
•Piotroski F-score6/9
▲Net debt / EBITDA-0.7x
▲Analyst target+27% (26 analysts)
Discounted cash flow
Bear
$103
-68%
growth 12% · disc. 10.9% · term. 2.0%
Base
$182
-43%
growth 19% · disc. 9.9% · term. 2.5%
Bull
$294
-8%
growth 24% · disc. 8.9% · term. 3.0%
A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.
Reverse DCFfor context, not a signal
A normal DCF guesses future cash flows and works out a price. A reverse DCF runs it backwards: it starts from today's price and asks how fast free cash flow would have to grow to justify it. It tells you what the market is assuming, not whether the stock is cheap or expensive, and it is not a buy or sell signal. Glossary
Today's price assumes free cash flow grows about 23% a year for 10 years.
Implied
+23%/yr
FCF, last 3 yrs
+12%/yr
FCF, last 5 yrs
+14%/yr
Revenue, last 3 yrs
+14%/yr
Revenue, last 5 yrs
+15%/yr
Same inputs as the DCF above: trailing free cash flow 1.4B, 9.9% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–
Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-03-31). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.13 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.
Multiples vs Information Technology
P/E (trailing)
pricier
sector median 35.9× · 78th pct
63.5×pricier
Forward P/E
pricier
sector median 16.9× · 89th pct
33.4×pricier
EV / EBITDA
pricier
sector median 20.8× · 85th pct
47.6×pricier
Price / sales
pricier
sector median 4.6× · 89th pct
15.9×pricier
Price / book
pricier
sector median 5.1× · 82nd pct
13.4×pricier
FCF yield
pricier
sector median 3.5% · 24th pct
1.6%pricier
Forward EPS $9.57 vs trailing $5.03 (+90% expected growth). Forward P/E uses analysts' next-12-month estimate.
Backlog (remaining performance obligations)
RPO
$8.0B
as of 2026-03-31
vs a year ago
+25%
YoY
× TTM revenue
1.45×
coverage
Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).
Quality & financial health
Gross margin
–
Operating margin
28.3%
FCF margin
25.9%
Net margin
21.2%
Return on equity
17.8%
Return on invested capital
21.6%
Net debt / EBITDA
-0.7×
Current ratio
1.5×
Interest cover
13.1×
Cash conversion (OCF/NI)
1.4×
Piotroski F-score 6/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✓ No share dilution✗ Gross margin improved✓ Asset turnover improved
Analysts
Mean target
$406
+27%
Analysts
26
Strong Buy
Range
$300–$470
low – high
● price · ◆ mean target
Annual history
| FY | Revenue | Net income | Free cash flow |
|---|---|---|---|
| 2025 | $5.3B | $1.1B | $1.6B |
| 2024 | $4.6B | $1.1B | $1.1B |
| 2023 | $4.1B | $1.0B | $1.2B |
| 2022 | $3.6B | $849.0M | $1.1B |
| 2022 | $3.0B | $696.0M | $1.0B |
| 2021 | $2.7B | $590.6M | $810.1M |
From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +14.1%.
Earnings
Next report: 2026-10-26 · after close · EPS est 2.05
EstimateActual (beat)Actual (miss)
| Report | EPS est | Actual | Surprise |
|---|---|---|---|
| 2026-07-27 | 2.06 | 2.11 | +2.7% |
| 2026-04-27 | 1.89 | 1.96 | +4.0% |
| 2026-02-17 | 1.91 | 1.99 | +4.1% |
| 2025-10-27 | 1.79 | 1.93 | +7.8% |
| 2025-07-28 | 1.56 | 1.65 | +6.0% |
| 2025-04-28 | 1.50 | 1.57 | +4.8% |
| 2025-02-18 | 1.82 | 1.88 | +3.2% |
| 2024-10-28 | 1.44 | 1.64 | +13.7% |
Quarterly revenue
| Quarter | Revenue | YoY |
|---|---|---|
| 2026-06-30 | $1.6B | +24.2% |
| 2026-03-31 | $1.5B | – |
| 2025-12-31 | $1.4B | – |
| 2025-09-30 | $1.3B | – |
| 2025-06-30 | $1.3B | – |
Analyst actions
B of A Securities
PT $420
2026-07-28 · main
Buy → BuyPT $420
Rosenblatt
PT $420
2026-07-28 · main
Buy → BuyPT $420
Citigroup
PT $420
2026-07-28 · main
Buy → BuyPT $420
Baird
PT $420
2026-07-28 · main
Outperform → OutperformPT $420
Needham
PT $400
2026-07-28 · reit
Buy → BuyPT $400
Piper Sandler
PT $349
2026-07-28 · main
Neutral → NeutralPT $349
News
Semiconductor (Silicon) Intellectual Property (SIP) Market Forecasts Growth from $7.3 Billion (2024) to $9.2 Billion by 2030, Profiling Arm, Cadence Design Systems, AMD, Ceva & 67 Other Key Players
GlobeNewswire · 4h ago
Cadence Design Systems stock may move 6.2% on earnings
Investing.com · 18h ago
Chipmaker Tenstorrent raises $1.5 billion at $6.2 billion valuation - Bloomberg
Investing.com · Oct 19
Stats refreshed 2026-10-19 01:10:00 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now
coteau
Coteau Systematic StrategiesSystematic equity research and model portfolios.Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.