CDNS- Cadence Design Systems, Inc.
Technology · Software - Application
Price & Performance
Performance
Analysis & Verdict
Analyst Ratings
Strong BuyWall Street consensus from 28 analysts
12-Month Price Target
$402.12
Based on analyst estimates; price targets are opinions, not guarantees.
Fair Value Estimates
Current price: $279.06
Graham Number
√(22.5 × EPS × Book Value)
$53.14
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
6/10
75% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
23.2%Return on equity - measures how efficiently capital is used
Positive profit margin
23.6%Net profit margin must be positive - company earns more than it spends
Revenue growth (annual)
+24.2%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+125.4%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
38.66×Low financial leverage reduces risk of distress
Current ratio above 1
1.74×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$666M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Financials
Revenue & Results
Key Statistics
Earnings
Next Earnings
Oct 26, 2026
42
days
EPS (TTM)
$5.04
P/E (TTM)
55.4
Fwd P/E
29.2
SEC Filings & Reported Financials
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Insider Transactions
SEC Form 4 · officers, directors & 10% owners
Dividends & Income
Dividends
This stock does not pay dividends.
Tools & Simulators
CDNS vs Peers, Indexes & Commodities
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Parameters
Final value
$426,404.61
Total invested
$130,000.00
Total interest
$296,404.61
Balance over time
Period breakdown
| Period | Balance | Invested | Interest |
|---|---|---|---|
| Start | $10,000.00 | $10,000.00 | $0.00 |
| Year 1 | $17,270.27 | $16,000.00 | $1,270.27 |
| Year 2 | $25,267.56 | $22,000.00 | $3,267.56 |
| Year 3 | $34,064.59 | $28,000.00 | $6,064.59 |
| Year 4 | $43,741.32 | $34,000.00 | $9,741.32 |
| Year 5 | $54,385.72 | $40,000.00 | $14,385.72 |
| Year 6 | $66,094.55 | $46,000.00 | $20,094.55 |
| Year 7 | $78,974.28 | $52,000.00 | $26,974.28 |
| Year 8 | $93,141.97 | $58,000.00 | $35,141.97 |
| Year 9 | $108,726.44 | $64,000.00 | $44,726.44 |
| Year 10 | $125,869.35 | $70,000.00 | $55,869.35 |
| Year 11 | $144,726.56 | $76,000.00 | $68,726.56 |
| Year 12 | $165,469.48 | $82,000.00 | $83,469.48 |
| Year 13 | $188,286.70 | $88,000.00 | $100,286.70 |
| Year 14 | $213,385.63 | $94,000.00 | $119,385.63 |
| Year 15 | $240,994.47 | $100,000.00 | $140,994.47 |
| Year 16 | $271,364.18 | $106,000.00 | $165,364.18 |
| Year 17 | $304,770.87 | $112,000.00 | $192,770.87 |
| Year 18 | $341,518.22 | $118,000.00 | $223,518.22 |
| Year 19 | $381,940.31 | $124,000.00 | $257,940.31 |
| Year 20 | $426,404.61 | $130,000.00 | $296,404.61 |
What is compound interest?
Compound interest means that the interest you earn in one period is added to your principal, so in the next period you earn interest on a larger base. This creates exponential growth: the longer your time horizon, the more dramatic the effect.
Which rate should I use?
The S&P 500 has historically returned ~10%/year before inflation over long periods - use this for an all-equity US index fund scenario. A balanced growth portfolio (stocks + bonds) is closer to 7%. High-yield savings accounts (HYSA) are currently paying around 4-5% with FDIC insurance and zero market risk. Bonds historically return ~4% annualized.
Formula used
FV = PV × (1+r)^n + PMT × ((1+r)^n − 1) / rwhere r is the monthly rate, n is the number of months, PV is the initial investment, and PMT is the monthly contribution. Annual rates are converted to monthly viar = (1 + annual%)^(1/12) − 1.
For educational purposes only. Not financial advice. Past returns do not guarantee future results.
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About Cadence Design Systems, Inc.
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.
Sector
Technology
Industry
Software - Application
Location
San Jose, United States
Employees
15,445
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Cadence Design Systems, Inc. (CDNS) stock trades at $279.06, down 3.56% on the day. With a market capitalization of $76.85 billion, CDNS is a large-cap technology stock. It trades at a price-to-earnings (P/E) ratio of 55.4, a forward P/E of 29.2 and earnings per share (EPS) of $5.04. Over the most recent period the company reported 24% year-over-year revenue growth and a net profit margin of 23.6%. Below you'll find CDNS's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.
CDNS - Frequently Asked Questions
Is Cadence Design Systems, Inc. (CDNS) a good stock to buy in 2026?
Cadence Design Systems, Inc. (CDNS) shows strengths such as revenue growth of 24%, a strong 24% net margin and a 23% return on equity, while risks include a rich P/E of 55× and high leverage (debt/equity of 38.7). Whether CDNS is a good buy in 2026 depends on your time horizon and risk tolerance - review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.
What is CDNS's stock price today?
Cadence Design Systems, Inc. (CDNS) trades at $279.06, down 3.56% on the session. Prices on this page update throughout the trading day.
Does CDNS pay a dividend?
No. Cadence Design Systems, Inc. (CDNS) does not currently pay a dividend, so the return comes entirely from share-price appreciation.
Is CDNS overvalued?
With a P/E ratio of 55.4×, CDNS trades at a premium valuation for the technology sector. Its PEG ratio is 2.19. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.
What is CDNS's market cap?
Cadence Design Systems, Inc. (CDNS) has a market capitalization of $76.85 billion, classifying it as a large-cap stock in the Technology sector.
Disclaimer: This page - including any buy/hold/avoid view, fair value or price estimate - is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.