What Is CDNS Fair Value?
Cadence Design Systems (CDNS) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Cadence Design Systems (CDNS) has a composite fair value estimate of $116.15 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $329.46, suggesting the stock is overvalued by 64.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$116.15
vs. current price of $329.46(-64.7%)
How Is CDNS Fair Value Calculated?
Four independent models estimate what CDNS is worth. Each uses different inputs and assumptions. The composite blends them by weight.
CDNS Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$162.18
-50.8%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
CDNS Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$51.92
-84.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$75.87
-77.0%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $329.46 is 50.8% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.86B | $1.69B |
| Year 2 | $2.16B | $1.77B |
| Year 3 | $2.50B | $1.85B |
| Year 4 | $2.89B | $1.94B |
| Year 5 | $3.35B | $2.03B |
| Year 6 | $3.88B | $2.13B |
| Year 7 | $4.49B | $2.23B |
| Year 8 | $5.19B | $2.33B |
| Year 9 | $6.01B | $2.45B |
| Year 10 | $6.96B | $2.56B |
| Terminal Value | $89.05B | $32.77B |
What Are CDNS's Key Financial Metrics?
Earnings & Growth
Current Price
$329.46
EPS (TTM)
$5.03
Forward P/E
34.4
Profit Margin
23.6%
Cash & Balance Sheet
Free Cash Flow
1.6B
EBITDA
2.2B
Book Value
$24.90
Total Debt
2.7B
What Do Analysts Say About CDNS?
Low
$300.00
Average
$406.24
High
$470.00
Upside
+23.3%
CDNS Fair Value FAQ
What is the fair value of CDNS?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), CDNS's estimated fair value is $116.15. The stock is currently trading at $329.46, which makes it overvalued by our analysis.
How is CDNS's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is CDNS overvalued or undervalued?
Based on our analysis, CDNS is overvalued. The current price of $329.46 is 64.7% above our estimated fair value of $116.15.
What do Wall Street analysts say about CDNS?
26 analysts cover Cadence Design Systems with a consensus rating of "Strong Buy." The average price target is $406.24, ranging from $300.00 to $470.00. This implies 23.3% upside from the current price.