CDNS
Cadence Design Systems
$389.04
▲ 0.4%Updated Today 7:15 PM ET
▲ Up 30.5% over the last 12 months
Market Cap
$106.85B
P/E
91.95x
Forward P/E (est.)
84.75x
ROE
21.1%
Revenue Growth
13.4%
EPS Growth
8.5%
Profit Margin
21.2%
FCF Yield
1.0%
Debt / Equity
0.45x
ROIC
18.0%
Interest Coverage
12.8x
Current Ratio
1.47x
Dividend Yield
—
Implied Growth (rev. DCF)
7.4%
Rating Score
50/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CDNS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CDNS trades near $389.04, above its 50-day average ($351.76) and 200-day average ($326.10). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. CDNS's is $18.80 (~4.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month CDNS found buyers near $331.56 (support) and sellers near $416.69 (resistance); its 52-week range is $262.75–$416.69. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.0× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Cadence Design Systems (CDNS) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $106.85B.
In its latest reported year it generated about $5.30B in revenue and $1.11B in net profit.
Our model rates CDNS Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
18.5%
Revenue moved from $2.68B in 2021 to $5.30B in 2025, a 18.5% compound annual growth rate. The most recent year grew a steady 13.4% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
86.1%
Operating Margin
28.2%
Net Margin
20.9%
ROE
21.1%
Cadence Design Systems keeps about 21.2% of each sales dollar as net profit, with a 86.1% gross margin and 28.2% operating margin. Return on equity is 21.1% and return on invested capital about 18.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$299.88M
Net Debt
-$1.11B
Net cash position
Net Debt / EBITDA
-0.74x
Debt / Equity
0.45x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 12.8x, with a current ratio of 1.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $299.88M of total debt against $1.41B of cash.
Operating CF
$1.73B
Free Cash Flow
$1.59B
FCF Margin
30.0%
In the latest year Cadence Design Systems produced about $1.73B of operating cash flow and $1.59B of free cash flow after capital spending. That is a free-cash-flow yield of about 1.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
91.95x
P/S
20.35x
P/B
15.52x
EV / EBITDA
61.38x
CDNS trades at 91.9x trailing earnings (about 84.8x on estimated forward earnings), 20.4x sales, and 15.5x book value. Reverse-engineering today's price implies the market expects roughly 7.4% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How CDNS stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), CDNS ranks #53 of 72 by our overall rating. It trades at a premium versus the sector on earnings (91.9x P/E vs. 35.6x median) with a lower return on equity (21.1% vs. 25.6%) and slower revenue growth (13.4% vs. 17.4%).
P/E vs sector
91.9x
median 35.6x
ROE vs sector
21.1%
median 25.6%
Growth vs sector
13.4%
median 17.4%
Sector rank
#53
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$408.66 – $683.58
vs. $389.04 today · expected CAGR 1% – 12%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.99B | $6.76B | $7.64B | $8.64B | $9.76B |
| Net income | $1.26B | $1.42B | $1.60B | $1.81B | $2.05B |
| EPS | $4.56 | $5.15 | $5.82 | $6.58 | $7.43 |
| Share price (low) | $250.64 | $283.22 | $320.04 | $361.65 | $408.66 |
| Share price (high) | $419.25 | $473.76 | $535.34 | $604.94 | $683.58 |
| CAGR (low–high) | -36% / 8% | -15% / 10% | -6% / 11% | -2% / 12% | 1% / 12% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for CDNS:
- Revenue is growing 13.4% a year, a sign of real demand.
- High net margins (21.2%) point to pricing power or efficiency.
- Strong return on equity (21.1%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
The case against CDNS:
- A rich 91.9x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 91.9x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Cadence Design Systems is a large-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 91.9x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.