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.
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).
17 more funds hold it; the full list is part of the paid plan.
All 227 Software - Application stocks
71 more in this industry show a wider margin of safety.
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.
$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.
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.
64 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.