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Cadence Design Systems

$001234567890012345678900123456789.0012345678900123456789-6.0%
52w low (est.) $285.38$465.80 52w high (est.)
Peers
Market data
Market cap
$105.96B
52-week range
$262.75 – $416.69
Beta (vs market)
1.15
Sector
Technology
Valuation
P/E ratio
89.3x
DCF fair value
$165.55
Margin of safety
-54.6%
Forward P/E
40.9x
PEG ratio
3.55
Quality & efficiency
Moat score
86/100
Return on equity
20.7%
Profit margin
21.2%
Debt / equity
0.47
Growth & analysts
Revenue growth (YoY)
+18.7%
Analyst target
$388.78
Target upside
+6.6%
Analysts covering
25

About Cadence Design Systems

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

Valuation

ValueGrowthProfitHealthIncome43QUALITY
Overall Rating
46
Hold
Hold
Moat Score86
DCF Intrinsic Value
$165.55-54.6% downside

Moat, DCF and rating computed by our valuation engine (ported from the original Python model).

Fundamentals

Market Cap
$105.96B
P/E Ratio
89.3
Dividend Yield
0.00%
Revenue Growth
+18.7%
Profit Margin
21.2%
ROE
20.7%
Debt / Equity
0.47
Beta
1.15
vs Technology sector:P/E 89 vs 53 Moat 86 vs 10Yield 0.00% vs 0.1%

Statistics

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