Cadence Design Systems, Inc. (CDNS) fair value analysis

S&P 500 & Nasdaq · Updated 2026-09-07

Cadence Design Systems, Inc. is a software and hardware company that provides electronic design automation tools and services used by engineers to design, simulate, and verify semiconductors, integrated circuits, and electronic systems. The company operates globally, serving customers across North America, Europe, Asia, and other regions.

Forward Fair Value verdict

Undervalued

Based on TickrTrends' weekly Forward Fair Value model, CDNS is trading at more than a 25% discount to estimated fair value.

CDNS currently ranks #66 of 199 Technology stocks by discount to Forward Fair Value. It has screened as Undervalued for 3 consecutive weekly runs.

Last price: $292.70
Sector: Technology
12-month range: $280.19–$414.16

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: A
Leverage: Low
Margin trend: Contracting
Revenue growth: Strong
RSI zone: Oversold
50/200-day trend: Mixed
52-week position: The bottom quarter of its range

What our data shows for CDNS

Our model validated 17 trailing price-to-earnings windows for CDNS, built from quarterly earnings records.
Shares are trading in the lower third of their 12-month price range of $280.19–$414.16.
The 14-day relative strength index sits at an oversold 28.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for CDNS
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent CDNS news

TickrTrends' derived news-sentiment signal for CDNS is currently leaning positive, computed from recent coverage.

Cadence Design Systems Inc (CDNS) Stock Down 4.0% -- Now Undervalued? GF Score: 98/100 (gurufocus.com, 2026-09-04)
TickrTrends take: Cadence Design Systems' recent 4 percent decline has moved the stock into undervalued territory according to TickrTrends analysis, creating a potential convergence between price weakness and fundamental value. With a GF Score of 98 out of 100, the company demonstrates strong operational and financial metrics that stand in contrast to the current market price. For investors focused on valuation, the gap between the company's quality score and its recent stock performance warrants monitoring whether this dislocation persists or narrows.
How Is Cadence Design Systems’ Stock Performance Compared to Other Application Software Stocks (finance.yahoo.com, 2026-09-03)
TickrTrends take: Cadence Design Systems operates in the competitive application software segment within the Technology sector, where relative stock performance often reflects underlying valuation disparities among peers. Given TickrTrends' current assessment that CDNS is undervalued, investors focused on valuation metrics would benefit from monitoring whether the company's performance trajectory narrows or widens the valuation gap compared to other application software companies. This comparative performance context becomes especially relevant when evaluating whether current pricing accurately reflects the company's operational strengths relative to its sector peers.
Cadence Design Systems, Inc. (CDNS) -- Innovation in Electronic Design | Spyglass Growth Strategy Q2 2026 (gurufocus.com, 2026-09-01)
TickrTrends take: Cadence Design Systems operates in the competitive Technology sector where innovation drives long-term competitive positioning and shareholder value. TickrTrends currently assesses CDNS as undervalued, suggesting the market may not be fully pricing in the potential benefits of strategic initiatives like the Spyglass growth strategy. Investors monitoring valuation should track how execution on innovation efforts translates into revenue growth and margin expansion in coming quarters.

What people are saying

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TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — TickrTrends' derived indicators for CDNS showed two notable shifts this week. The RSI zone moved from neutral territory into oversold conditions, while the sector discount rank improved from number 86 to number 66, indicating a stronger relative valuation position within the Technology sector. The stock maintains an undervalued current valuation verdict.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is CDNS stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), CDNS is trading at more than a 25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is CDNS's TickrTrends verdict?

CDNS's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does CDNS compare to other Technology stocks?

CDNS ranks #66 of 199 Technology stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is CDNS overbought or oversold?

CDNS's 14-day RSI is in the oversold zone on TickrTrends' latest weekly data.

All Technology fair-value coverage →

Head-to-head comparisons

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