Cadence Design Systems, Inc.

Valuation Analysis

About the Company

Cadence Design Systems, Inc. en bref

Cadence Design Systems, Inc. (CDNS) is currently trading at 338,07 € with a market capitalization of 93,2 Md €. The trailing P/E ratio stands at 89.88x, with a forward P/E of 41.28x. The 52-week range spans from 229,30 € to 363,64 €; the current price is 7% below the yearly high. Year-over-year revenue growth stands at +18.7%. The net profit margin stands at 21.18%.

💰 Dividende

Cadence Design Systems, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Avis des analystes

26 analystes évaluent Cadence Design Systems, Inc. (CDNS) au consensus : Achat Fort. L'objectif de cours moyen est de 336,30 €, soit un potentiel de -0.52% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 239,99 € à 383,98 €.

Cadence Design Systems, Inc. : la thèse d'investissement en détail

Cadence Design Systems, Inc. (CDNS) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

Revenue is growing at a healthy 18.7% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 86.08%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 21.18%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Le scénario baissier

A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valorisation en contexte

At a PEG of 3.68, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 53.87x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

À surveiller

• The forward P/E of 41.28x is meaningfully below the trailing 89.88x — analysts expect earnings to step up; the next earnings release is the test.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Profil de risque

The data points to market-like volatility.

Trading Data

Related Stocks in the Same Sector

Where can I buy Cadence Design Systems, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.