--- title: Cadence Design Systems (CDNS) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/cdns ticker: CDNS as_of: 2026-10-17 sector: Technology industry: Software - Application --- # Cadence Design Systems (CDNS) Cadence Design Systems (CDNS) closed at $319.51 on Oct 16, 2026, overvalued by 182% vs its model value of $113.45 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $319.51 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $113.45 | | Price vs model | overvalued by 182% vs model | | Range of that model | $78.49 – $219.68 | | Market value | $88.0B | | P/E (fiscal 2025) | 78.7 | | Net margin (fiscal 2025) | 20.9% | | Free cash flow (fiscal 2025) | $1.6B | | Dividend yield (trailing twelve months) | 0.00% | | Beta | 1.13 | | Cost of capital (WACC) | 9.42% | | Business classification | Profitable Growth (Moderate growth (~14% recent), High profitability (21% net margin), Highly cyclical earnings) | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $113.45 | $78.49 | $219.68 | | DCF · Perpetuity growth · 10y | cross check | $128.46 | $90.20 | $242.87 | | DCF · EBITDA exit · 5y | cross check | $413.45 | $353.70 | $482.23 | | DCF · EBITDA exit · 10y | cross check | $393.58 | $312.42 | $496.94 | | P/E · peers | cross check | $211.27 | $178.51 | $244.03 | | P/E · own history | cross check | $306.40 | $272.00 | $332.02 | | PEG | sanity check | $184.17 | $184.17 | $184.17 | | EV/EBITDA · peers | cross check | $330.34 | $200.43 | $350.98 | | EV/Revenue · peers | cross check | $155.66 | $154.98 | $227.80 | | Earnings power value | cross check | $40.07 | $34.83 | $47.30 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 19 open-market sales ($5.4M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 15, 2026 | Cunningham Paul | Sr. Vice President | Open-market sell (10b5-1 plan) | 2,000 | $648,260 | | Oct 15, 2026 | Cunningham Paul | Sr. Vice President | Option/RSU exercise (10b5-1 plan) | 1,000 | $0 | | Oct 15, 2026 | Cunningham Paul | Sr. Vice President | Option/RSU exercise (10b5-1 plan) | 1,000 | $138,020 | | Oct 1, 2026 | SANGIOVANNI VINCENTELLI ALBERTO | Director | Open-market sell (10b5-1 plan) | 1,250 | $437,589.9 | | Sep 17, 2026 | Scannell Paul | Sr. Vice President | Tax withholding | 937 | $263,072.1 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Jul 29, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/813672/000081367226000092/cdns-20260630.htm | | Jul 27, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/813672/000081367226000089/cdns-20260727.htm | | May 12, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/813672/000081367226000067/cdns-20260507.htm | | May 12, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/813672/000081367226000066/cdns-20251117.htm | | May 1, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/813672/000081367226000047/cdns-20260331.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Jensen | 2026-06-30 | 308,555 | $115.8M | | Dodge & Cox | 2026-06-30 | 228,012 | $85.6M | | Bridgewater | 2026-06-30 | 1,124 | $421,860 | 3 tracked managers in all. ## About Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, coverin… --- Source: https://sweetvaluelab.com/stocks/cdns (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.