Fundamentals Overview
Cadence Design Systems, Inc. is in the middle of its 52-week range with premium valuation, trading relatively flat today.
Valuation premium
Intrinsic value (DCF)
-59.9% downside vs price
Profitability
Risk (Beta)
1.15 — 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- · Sentiment improving (1 upgrade) · 3M vs S&P 500: +18.9%
Pressures (Sell):
DCF 59.9% downside vs price
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: majority upgrades. Current institutional positions: Buy: 12, Neutral: 5, Outperform: 2, Overweight: 10, 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 $149.09; current price is $371.50. That’s a -59.9% 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) | 86.84 |
| DCF value (model) | $149.09 (-59.9% vs price) |
| PEG (TTM) | 10.49 |
| P/B (TTM) | 15.4 |
| P/S (TTM) | 18.53 |
| P/FCF (TTM) | 71.66 |
| Liquidity & enterprise | |
| Current Ratio (TTM) | 1.47 |
| Quick Ratio (TTM) | 1.32 |
| Cash Ratio (TTM) | 0.65 |
| Profitability | |
| ROE (TTM) | N/A |
| ROA (TTM) | N/A |
| Revenue growth (YoY) | N/A |
| Net margin (TTM) | 21.18% |
| Gross margin (TTM) | 88.85% |
| Operating margin (TTM) | 31.11% |
| Debt to equity (TTM) | N/A |
Latest News
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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 |
|---|---|---|---|---|
| Stifel | maintain | Buy | Buy | 2026-06-09 |
| Wells Fargo | maintain | Overweight | Overweight | 2026-05-26 |
| Citigroup | maintain | Buy | Buy | 2026-04-29 |
| Wells Fargo | maintain | Overweight | Overweight | 2026-04-28 |
| Piper Sandler | maintain | Neutral | Neutral | 2026-04-28 |
| Needham | maintain | Buy | Buy | 2026-04-28 |
| Baird | maintain | Outperform | Outperform | 2026-04-28 |
| Keybanc | maintain | Overweight | Overweight | 2026-04-28 |
| Rosenblatt | maintain | Buy | Buy | 2026-04-28 |
| Rosenblatt | maintain | Buy | Buy | 2026-04-24 |
| Needham | maintain | Buy | Buy | 2026-04-20 |
| Rosenblatt | maintain | Buy | Buy | 2026-02-26 |
| Morgan Stanley | maintain | Overweight | Overweight | 2026-02-18 |
| Piper Sandler | maintain | Neutral | Neutral | 2026-02-18 |
| Wells Fargo | maintain | Overweight | Overweight | 2026-02-18 |
| Rosenblatt | upgrade | Neutral | Buy | 2026-02-18 |
| Needham | maintain | Buy | Buy | 2026-02-18 |
| Rosenblatt | maintain | Neutral | Neutral | 2026-02-17 |
| Needham | maintain | Buy | Buy | 2025-12-22 |
| Oppenheimer | maintain | Underperform | Underperform | 2025-10-28 |
| Baird | maintain | Outperform | Outperform | 2025-10-28 |
| JP Morgan | maintain | Overweight | Overweight | 2025-10-28 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-10-28 |
| Needham | maintain | Buy | Buy | 2025-10-28 |
| Wells Fargo | maintain | Overweight | Overweight | 2025-10-28 |
| Rosenblatt | maintain | Neutral | Neutral | 2025-10-22 |
| JP Morgan | maintain | Overweight | Overweight | 2025-07-29 |
| Needham | maintain | Buy | Buy | 2025-07-29 |
| Wells Fargo | maintain | Overweight | Overweight | 2025-07-29 |
| Keybanc | maintain | Overweight | Overweight | 2025-07-29 |