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Fair Value for Cadence Design Systems (CDNS)

See growth priced into Cadence Design Systems (CDNS): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what CDNS is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$130.04

Above fair value
-189.29% vs current price $376.19

Method range

$25.87 $527.12

median $268.35

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$130.04
  • Exit multiple$527.12
  • Analyst target$406.67
  • Graham number$25.87

Stock price

$376.19

FCF / share (TTM)

$1.13

3Y FCF CAGR

11.9%

Fair value @ hist. growth

$29.29

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

48.7%

per year over your projection horizon

Premium vs DCF

Margin of safety -1184.5% vs hist-growth DCF

Historical 3Y CAGR

11.9%

Your model implies

48.7%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)10.3%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)12%
3Y CAGR 12%

Undiscounted FCF per share over 10 years at 12% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
8.3%44.4%43.5%42.4%41.2%40.0%
9.3%47.5%46.6%45.7%44.7%43.6%
10.3%50.3%49.5%48.7%47.8%46.9%
11.3%52.9%52.2%51.5%50.7%49.9%
12.3%55.5%54.9%54.2%53.5%52.8%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday76.5
5Y low51.3
Median73.2
5Y high77.2
P/SToday16.0
5Y low12.2
Median17.1
5Y high17.9
EV/EBITDAToday45.0
5Y low36.2
Median48.9
5Y high54.9

Net cash

$521M

Total debt − cash

Beta

1.15

Vs market benchmark

Frequently asked questions