What Is CDNS Fair Value?
Cadence Design Systems (CDNS) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Cadence Design Systems (CDNS) has a composite fair value estimate of $99.96 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $371.50, suggesting the stock is overvalued by 73.1%.
Data as of July 16, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$99.96
vs. current price of $371.50(-73.1%)
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 →
$136.27
-63.3%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 →
$49.08
-86.8%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.
$66.33
-82.1%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 $371.50 is 63.3% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.72B | $1.56B |
| Year 2 | $1.97B | $1.61B |
| Year 3 | $2.26B | $1.67B |
| Year 4 | $2.60B | $1.74B |
| Year 5 | $2.98B | $1.80B |
| Year 6 | $3.42B | $1.87B |
| Year 7 | $3.93B | $1.94B |
| Year 8 | $4.50B | $2.01B |
| Year 9 | $5.17B | $2.08B |
| Year 10 | $5.93B | $2.16B |
| Terminal Value | $74.90B | $27.32B |
What Are CDNS's Key Financial Metrics?
Earnings & Growth
Current Price
$371.50
EPS (TTM)
$4.30
Forward P/E
39.6
Profit Margin
21.2%
Cash & Balance Sheet
Free Cash Flow
1.5B
EBITDA
2B
Book Value
$23.79
Total Debt
3.1B
What Do Analysts Say About CDNS?
Low
$275.00
Average
$394.79
High
$470.00
Upside
+6.3%
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 $99.96. The stock is currently trading at $371.50, 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 $371.50 is 73.1% above our estimated fair value of $99.96.
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 $394.79, ranging from $275.00 to $470.00. This implies 6.3% upside from the current price.