Cadence Design Valuation
| CDNS Stock | USD 248.90 4.05 1.60% |
At this time, the firm appears to be undervalued. Cadence Design Systems shows a prevailing Real Value of $272.24 per share. The current price of the firm is $248.9. Our model approximates the value of Cadence Design Systems from analyzing the firm fundamentals such as profit margin of 0.23 %, and Return On Equity of 0.26 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cadence Design's valuation include:
Price Book 15.1518 | Enterprise Value | Enterprise Value Ebitda 42.3639 | Price Sales 14.939 | Forward PE 38.3142 |
Undervalued
Today
Please note that Cadence Design's price fluctuation is very steady at this time. Calculation of the real value of Cadence Design Systems is based on 3 months time horizon. Increasing Cadence Design's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Cadence stock is determined by what a typical buyer is willing to pay for full or partial control of Cadence Design Systems. Since Cadence Design is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cadence Stock. However, Cadence Design's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 248.9 | Real 272.24 | Target 320.54 | Hype 249.78 | Naive 235.06 |
The intrinsic value of Cadence Design's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Cadence Design's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Cadence Design Systems helps investors to forecast how Cadence stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cadence Design more accurately as focusing exclusively on Cadence Design's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cadence Design's intrinsic value based on its ongoing forecasts of Cadence Design's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cadence Design's closest peers.
Cadence Design Cash |
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Cadence Valuation Trend
Cadence Design's real value is important for investors to make better decisions and a more accurate overall view of Cadence Design's financial worth over time. Using both Cadence Design's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Cadence Revenue by Product
Cadence Design Total Value Analysis
Cadence Design Systems is currently estimated to have valuation of 70.61 B with market capitalization of 69.34 B, debt of 2.48 B, and cash on hands of 1.03 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Cadence Design fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
70.61 B | 69.34 B | 2.48 B | 1.03 B |
Cadence Design Investor Information
About 92.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.71. Cadence Design Systems had not issued any dividends in recent years. The entity had 2:1 split on the 17th of November 1997. Based on the analysis of Cadence Design's profitability, liquidity, and operating efficiency, Cadence Design Systems is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Income | 1.4 B | 1.4 B |
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Cadence Design Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cadence Design has an asset utilization ratio of 51.72 percent. This implies that the Company is making $0.52 for each dollar of assets. An increasing asset utilization means that Cadence Design Systems is more efficient with each dollar of assets it utilizes for everyday operations.Cadence Design Ownership Allocation
Cadence Design holds a total of 274.11 Million outstanding shares. The majority of Cadence Design Systems outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cadence Design Systems to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cadence Design. Please pay attention to any change in the institutional holdings of Cadence Design Systems as this could imply that something significant has changed or is about to change at the company. On February 14, 2025, Representative Rob Bresnahan of US Congress acquired under $15k worth of Cadence Design Systems's common stock.Cadence Design Profitability Analysis
The company reported the previous year's revenue of 4.64 B. Net Income was 1.06 B with profit before overhead, payroll, taxes, and interest of 3.99 B.About Cadence Design Valuation
The stock valuation mechanism determines Cadence Design's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Cadence Design Systems based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cadence Design. We calculate exposure to Cadence Design's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cadence Design's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.4 B | 4.7 B | |
| Pretax Profit Margin | 0.30 | 0.32 | |
| Operating Profit Margin | 0.29 | 0.31 | |
| Net Profit Margin | 0.23 | 0.24 | |
| Gross Profit Margin | 0.95 | 0.65 |
Cadence Design Growth Indicators
Investing in growth stocks can be very risky. If the company such as Cadence Design does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 273.8 M | |
| Quarterly Earnings Growth Y O Y | 0.041 | |
| Forward Price Earnings | 38.3142 |
Cadence Design Current Valuation Indicators
Cadence Design's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Cadence Design's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cadence Design, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cadence Design's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cadence Design's worth.Additional Tools for Cadence Stock Analysis
When running Cadence Design's price analysis, check to measure Cadence Design's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.