CDNS
CADENCE DESIGN SYSTEMS, INC.Data updated: 2026-06-05 · Current price: $376.19
Composite Score: 59
HOLD
Score: 59 / 100
Valuation is within reasonable range — hold and wait for a better entry point
Profitability
85
Growth
72
Valuation
7
Moat
60
Stability
77
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
$376.19
Source: Alpha Vantage
💡 Valuation Note: Intrinsic value based on DCF model, adjustable above. Visit the DCF Calculator for full three-stage valuation.
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"Price is what you pay. Value is what you get."
— Warren Buffett