CDNS

$270.14

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 6.06% trendline growth.
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$126.31

With 20% Margin of Safety (MoS):

$101.05
-62.59% downside
Capital Efficiency
Average Quarterly ROIC
6.25%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
43
BearishWeighted across 6 signals
DCF Discount
62.6% premium to price
0
FCF Yield
2.4% trailing FCF yield
10
ROIC vs WACC
ROIC 6.3% vs WACC 9.0% (0.7x)
35
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
16.9% 5Y FCF CAGR
100
Strengths: Net Debt / FCF, FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.
Narrative Score
56
Weak
Weighted across 4 recent drivers · Last 30 daysVs 6-Month Baseline: Below Avg (21th pct)
Trend: StableConfidence: 87%Updated: 3h ago
Sources: 43 (News 42 · Analyst 1)
Drivers
27 news sentiment+0.4
14 regulatory scrutiny+0.1
Earnings miss+0.1
Analyst reiterations0.0
Other Metrics
P/E69.0
Profit Margin20.4%
Owner Earnings$1.42b
One Dollar Premise0.00%
Debt/Equity0.89
Current Ratio2.96
PEG13.517
Free Cash Flow (in millions)
20052006200720082009201020112012201320142015201620172018201920202021202220232024
$498$497$486$170$68$237$272$352$413$357$423$499$529$666$804$1,000$1,168$1,366$1,452$1,755
How Intrinziq Estimates Fair Value

Intrinziq estimates Cadence Design Systems, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Cadence Design Systems, Inc.Technology

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.