CDNS

CADENCE DESIGN SYSTEMS, INC.

Data updated: 2026-04-21 · Current price: $347.24

ProfitabilityGrowthValuationMoatStability
Composite Score: 56
HOLD
Score: 56 / 100
Valuation is within reasonable range — hold and wait for a better entry point
Profitability
63
Growth
53
Valuation
33
Moat
31
Stability
70

Business Quality

ROE · Gross Margin · Revenue Growth

ROE

20.3%

Quality threshold: > 15%

Gross Margin

28.2%

Quality threshold: > 40%

Rev. Growth (5yr)

18.5%

Quality threshold: > 5%

5-Year ROE: 20.3% → 22.6% → 30.6% → 25.4% → 23.7%|5-Year Gross Margin: 28.2% → 29.1% → 30.6% → 26.1% → 24.1%

Financial Strength

Debt Ratio · Free Cash Flow · Current Ratio

Debt / Equity

1.85

Quality threshold: < 0.5

FCF (5yr avg)

1.4B $

Quality threshold: > 0

Current Ratio

1x

Quality threshold: > 1.5

FCF Trend (B USD)

$1.9B2022
$1.4B2023
$1.5B2024
$1.2B2025
$1.0B2026

Valuation

Intrinsic Value · Margin of Safety

Owner Earnings

$1.2B

Net Income + D&A - CapEx

Current Price

$347.24

Source: Alpha Vantage

💡 Valuation Note: Intrinsic value based on DCF model, adjustable above. Visit the DCF Calculator for full three-stage valuation.

Complete Your Analysis

"Price is what you pay. Value is what you get."

— Warren Buffett