CDNS - Cadence Design Systems, Inc.

CDNS

$374.93 +1.08 (+0.29%) Last updated: May 31, 2026 03:53

52-Week Range

$374.93

$262.75 $374.93 $383.80

Fundamentals Overview

Cadence Design Systems, Inc. is near the high of its 52-week range with premium valuation, trading relatively flat today.

Valuation premium

P/E 87.6 PEG 10.58 P/B 15.55 P/S 18.7

Intrinsic value (DCF)

-58.3% downside vs price

Profitability

Net margin 21.2%

Risk (Beta)

1.13 — in line vol

Earnings & growth

EPS $4.28 Rev +2.4% Profit -13.5% vs prior qtr

BullzEye Analysis

Our composite tilts Hold on technicals (e.g. RSI, ADX, trend), fundamentals, sentiment, sector and index context, and risk.

Composite Signal

Sell

Buy

Hold — 56% confidence Risk: Moderate Volatility — Beta 1.13. Diversify and only invest what you can afford to lose.

Supporting (Buy):

Analyst grade: B · 3M vs S&P 500: +15.1%

Pressures (Sell):

DCF 58.3% downside vs price · 3M vs Technology sector: -9.4%

Not financial advice. For education and research only; do your own research and consider a financial advisor before investing.

Key Stats

Market Cap

$103.41B

P/E (TTM)

87.64

EPS (TTM)

$4.28

Dividend Yield

N/A

52-Week Range

$262.75 - $383.80

Volume vs Avg

N/A

Beta

1.13

About

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides d...

Sector: Technology

Headquarters: US

Employees: 12,837

IPO Date: Jun 1987

Website: www.cadence.com

Beta: 1.13 (More volatile than market)

Ratings & Grades at a Glance

Overall rating: B. Recent institutional grades: mixed. Current institutional positions: Buy: 11, Neutral: 7, Outperform: 2, Overweight: 9, Underperform: 1.

Financial story & AI narrative

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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 $156.30; current price is $374.93. That’s a -58.3% 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)	87.64
DCF value (model)	$156.30 (-58.3% vs price)
PEG (TTM)	10.58
P/B (TTM)	15.55
P/S (TTM)	18.7
P/FCF (TTM)	72.32
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

B Sentiment Mixed

Buy 11Neutral 7Outperform 2Overweight 9Underperform 1

1 upgrade, 1 downgrade

Price Target Consensus

Current $374.93

Median $395.00

Consensus $387.86

Low consensus $275.00

High consensus $440.00

Stock Grades (Institutions)

Institution	Action	Previous Grade	New Grade	Date
Wells Fargo	maintain	Overweight	Overweight	2026-05-26
Citigroup	maintain	Buy	Buy	2026-04-29
Baird	maintain	Outperform	Outperform	2026-04-28
Piper Sandler	maintain	Neutral	Neutral	2026-04-28
Wells Fargo	maintain	Overweight	Overweight	2026-04-28
Needham	maintain	Buy	Buy	2026-04-28
Rosenblatt	maintain	Buy	Buy	2026-04-28
Keybanc	maintain	Overweight	Overweight	2026-04-28
Rosenblatt	maintain	Buy	Buy	2026-04-24
Needham	maintain	Buy	Buy	2026-04-20
Rosenblatt	maintain	Buy	Buy	2026-02-26
Needham	maintain	Buy	Buy	2026-02-18
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
Rosenblatt	maintain	Neutral	Neutral	2026-02-17
Needham	maintain	Buy	Buy	2025-12-22
Rosenblatt	maintain	Neutral	Neutral	2025-10-28
Needham	maintain	Buy	Buy	2025-10-28
JP Morgan	maintain	Overweight	Overweight	2025-10-28
Oppenheimer	maintain	Underperform	Underperform	2025-10-28
Wells Fargo	maintain	Overweight	Overweight	2025-10-28
Baird	maintain	Outperform	Outperform	2025-10-28
Rosenblatt	maintain	Neutral	Neutral	2025-10-22
Stifel	maintain	Buy	Buy	2025-07-29
Wells Fargo	maintain	Overweight	Overweight	2025-07-29
Piper Sandler	downgrade	Overweight	Neutral	2025-07-29
JP Morgan	maintain	Overweight	Overweight	2025-07-29
Rosenblatt	maintain	Neutral	Neutral	2025-07-29