Cadence Design Systems, Inc. (CDNS) Valuation — DCF, Graham & Comparables

Cadence Design Systems, Inc. (CDNS) — Price $327.89 (closing price, October 30, 2026) — Technology — Software - Application — NASDAQ

Latest reported results:

Valuation dashboard for Cadence Design Systems, Inc. (CDNS) with P/E 65.19, P/B 13.06, EV/EBITDA 38.76 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware.

Analysis Summary

Cadence Design Systems, Inc. reported revenue of $5.30B in the most recent fiscal year, growing at a 5-year CAGR of 14.6%. Net income reached $1.11B, with a 13.4% 5-year CAGR.

Trailing-twelve-month margins: gross margin 85.7%, operating margin 28.9%, net margin 22.5%.

At $327.89 (closing price, October 30, 2026), CDNS trades at a P/E of 65.19 and an ROE of 21.43%. Market capitalisation stands at $90.0B, placing it among large-cap names.

Balance sheet quality for CDNS: current ratio of 2.9. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio65.19
Price / Book13.06
EV / EBITDA38.76
Dividend Yield0.00%

Valuation Models

DCF Fair Value$139.03
vs Current Price-57.6%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
CDNSCadence Design Systems, Inc.$90.0B65.1913.0621.4%
SNPSSynopsys, Inc.$89.6B81.762.883.6%
SHOP.TOShopify Inc.CAD 286.0B105.7016.0815.1%
SAPSAP SE$273.9B29.805.2917.8%
0VHA.LShopify Inc.$219.9B113.2117.2215.1%
SHOPShopify Inc.$204.4B105.7016.0815.1%
CRMSalesforce, Inc.$188.6B20.914.9020.2%
0L5N.LServiceNow, Inc.$157.1B98.7313.1213.8%

Price

Price$327.89 (closing price, October 30, 2026)
Market Cap$90.0B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity21.43%
Return on Invested Capital12.80%
Return on Assets11.29%
Gross Margin85.68%
Operating Margin28.95%
Net Margin22.51%

Related companies: SNPS · SHOP.TO · SAP · 0VHA.L · SHOP · CRM · 0L5N.L · UBER

Explore sector: Technology · Software - Application

More sections of CDNS: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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