Cadence Design Systems Inc (CDNS)

NASD · Technology · Software - Application · USA

Cadence Design Systems Inc is a large cap company (market value between $10 billion and $200 billion) in the Software - Application industry.

Cadence Design Systems develops computational software, accelerated hardware, and silicon intellectual property for semiconductor and electronic system design. The company serves semiconductor manufacturers and systems companies that design integrated circuits and electromechanical products. Its offerings span Core EDA tools for chip design and verification, Semiconductor IP portfolios, and System Design and Analysis solutions for full electronic systems.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Cadence Design Systems Inc stock.

Our verdict on CDNS

Overvalued: intrinsic value $214.29 per share, market price $325.86, margin of safety -52.1% (as of 2026-10-19).

A 9.7x revenue multiple, adjusted for growth and margin, values the shares at $214.29; the price of $325.86 is 52% above that value.

Leak Score: 64/100 on 11 of 12 signals (Faint Leak).

ETFs with the most weight in CDNS

17 more funds hold it; the full list is part of the paid plan.

More on CDNS

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Is CDNS undervalued or overvalued?

CDNS is overvalued (as of the 2026-10-19 close). A 9.7x revenue multiple, adjusted for growth and margin, values the shares at $214.29; the price of $325.86 is 52% above that value.

What is the intrinsic value of CDNS?

$214.29 per share (as of the 2026-10-19 close), against a market price of $325.86. That is a margin of safety of -52.1%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What is priced into CDNS stock?

The price pays more for each dollar of sales than its growth and margins justify. Times its sales the price pays: 14.9x. Multiple we apply for its growth and margins: 9.7x.

What is Cadence Design Systems Inc's Leak Score?

64 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.