Fundamentals Overview
Cadence Design Systems, Inc. is in the middle of its 52-week range with premium valuation, trending upward today.
Valuation premium
Intrinsic value (DCF)
-40.7% downside vs price
Profitability
Risk (Beta)
1.04 — in line vol
Earnings & growth
BullzEye Analysis
Our composite tilts Hold on technicals (e.g. RSI, ADX, trend), fundamentals, sentiment, sector and index context, and risk.
Composite Signal
Supporting (Buy):
Analyst grade: B-
Pressures (Sell):
DCF 40.7% downside vs price · 3M vs S&P 500: -7.3% · 3M vs Technology sector: -9%
Not financial advice. For education and research only; do your own research and consider a financial advisor before investing.
Key Stats
About
Ratings & Grades at a Glance
Overall rating: B-. Recent institutional grades: mixed. Current institutional positions: Buy: 9, Neutral: 7, Outperform: 4, Overweight: 9, Underperform: 1.
Valuation & Ratios
Valuation, liquidity, and profitability metrics are consolidated here (including ratios that previously appeared in the Financials story). Trailing (TTM) vs forward-looking (e.g. DCF) is noted on each line where it matters.
DCF vs price: DCF estimate is $180.27; current price is $304.10. That’s a -40.7% gap. When the gap is large (e.g. >20%), that’s divergence; when they’re close, that’s convergence. Differences can reflect growth expectations, sector premiums, or conservative vs. optimistic assumptions. Use DCF as one input alongside technicals and sentiment.
| Metric | Value |
|---|---|
| Valuation | |
| P/E (TTM) | 74.85 |
| DCF value (model) | $180.27 (-40.7% vs price) |
| PEG (TTM) | 14.79 |
| P/B (TTM) | 15.05 |
| P/S (TTM) | 15.85 |
| P/FCF (TTM) | 52.91 |
| Liquidity & enterprise | |
| Current Ratio (TTM) | 2.86 |
| Quick Ratio (TTM) | 2.67 |
| Cash Ratio (TTM) | 1.84 |
| Profitability | |
| ROE (TTM) | N/A |
| ROA (TTM) | N/A |
| Revenue growth (YoY) | N/A |
| Net margin (TTM) | 20.94% |
| Gross margin (TTM) | 86.36% |
| Operating margin (TTM) | 31.15% |
| Debt to equity (TTM) | N/A |
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Price Target, Ratings & Grades
Analyst price targets, consensus, rating snapshot, and institutional grades for CDNS.
Analyst Sentiment at a Glance
Stock Grades (Institutions)
| Institution | Action | Previous Grade | New Grade | Date |
|---|---|---|---|---|
| Rosenblatt | maintain | Buy | Buy | 2026-02-26 |
| Rosenblatt | upgrade | Neutral | Buy | 2026-02-18 |
| Wells Fargo | maintain | Overweight | Overweight | 2026-02-18 |
| Piper Sandler | maintain | Neutral | Neutral | 2026-02-18 |
| Morgan Stanley | maintain | Overweight | Overweight | 2026-02-18 |
| Needham | maintain | Buy | Buy | 2026-02-18 |
| Rosenblatt | maintain | Neutral | Neutral | 2026-02-17 |
| Needham | maintain | Buy | Buy | 2025-12-22 |
| Needham | maintain | Buy | Buy | 2025-10-28 |
| Wells Fargo | maintain | Overweight | Overweight | 2025-10-28 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-10-28 |
| JP Morgan | maintain | Overweight | Overweight | 2025-10-28 |
| Oppenheimer | maintain | Underperform | Underperform | 2025-10-28 |
| Baird | maintain | Outperform | Outperform | 2025-10-28 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-10-22 |
| Mizuho | maintain | Outperform | Outperform | 2025-07-29 |
| JP Morgan | maintain | Overweight | Overweight | 2025-07-29 |
| Piper Sandler | downgrade | Overweight | Neutral | 2025-07-29 |
| Wells Fargo | maintain | Overweight | Overweight | 2025-07-29 |
| Stifel | maintain | Buy | Buy | 2025-07-29 |
| Needham | maintain | Buy | Buy | 2025-07-29 |
| Loop Capital | maintain | Buy | Buy | 2025-07-29 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-07-29 |
| Keybanc | maintain | Overweight | Overweight | 2025-07-29 |
| Baird | maintain | Outperform | Outperform | 2025-07-28 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-07-25 |
| Mizuho | maintain | Outperform | Outperform | 2025-07-22 |
| Loop Capital | maintain | Buy | Buy | 2025-07-14 |
| Keybanc | maintain | Overweight | Overweight | 2025-07-10 |
| Wells Fargo | maintain | Overweight | Overweight | 2025-05-16 |