Cadence Design Systems, Inc. (CDNS) fair value analysis
S&P 500 & Nasdaq · Updated 2026-10-19
CDNS price how computed
Forward Fair Value verdict
UndervaluedCDNS is trading at a 10–25% discount to estimated fair value.
Based on TickrTrends' weekly Forward Fair Value model.
- Last price
- $352.84
- Sector
- Technology
- 12-month range
- $265.66–$416.39
- Market cap
- $97.3B
- From 52-week high
- -15.3%
- Shares outstanding
- 276M
- Rank in Technology by discount to fair value
- #71 of 181
Last price is our 2026-10-19 weekly price; the chart runs through 2026-10-16.
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.
CDNS currently ranks #71 of 181 Technology stocks by discount to fair value. It has screened as Undervalued for 14 consecutive weekly runs.
Fundamentals (4 quarters) how computed
- Market cap
- $97.3B
- P/E (trailing)
- 47x
- Revenue (TTM)
- $5.84B
- Net margin
- 23.6%
- EPS (TTM)
- $7.46
- Gross margin
- 84.9%
- Debt / equity
- 0.36
- Revenue growth (3-yr avg)
- 18.3%
- Shares outstanding
- 276M
Derived indicators how computed
- Quality grade
- A
- Margin trend
- Expanding
- 52-week position
- The upper-middle quarter of its range
Technicals how computed
- RSI (14-day)
- 58 · neutral
- 50-day average
- $319.78
- 200-day average
- $326.99
- Moving-average state
- 50-day below 200-day (death cross state); price between the averages
- Momentum score
- 75 · grade B
- Positive weeks (of 12)
- 3
Earnings how computed
- Next earnings report
- 2026-10-26 (post-market)
- Last 8 quarters vs consensus
- 7 beat, 1 missed
- Quarter by quarter
- 2026-06 ▼ miss (-2.5%)
2026-03 ▲ beat (+3.7%)
2025-12 ▲ beat (+4.2%)
2025-09 ▲ beat (+7.8%)
2025-06 ▲ beat (+5.8%)
2025-03 ▲ beat (+4.7%)
2024-12 ▲ beat (+3.2%)
2024-09 ▲ beat (+13.9%)
Analyst consensus how computed
This is not TickrTrends' verdict.
- Analyst ratings
- 23 buy · 2 hold · 0 sell (25 analysts)
- Consensus lean
- Buy-leaning
- Consensus price target
- $406
- Target vs last price
- +15.1%
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 middle of their 12-month price range of $265.66–$416.39.
- The 14-day relative strength index sits at a neutral 58.
- 3 of the last 12 weekly snapshots showed positive price momentum.
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
Forward Fair Value applies a conservatively normalized historical price-to-earnings multiple to the consensus earnings estimate for the next full fiscal year; how TickrTrends computes it.
Recent CDNS news
TickrTrends' derived news-sentiment signal for CDNS is currently leaning positive, computed from recent coverage.
- Cadence Design Systems Inc (CDNS) Shares Fall 4.1% -- What GF Score of 99 Tells Investors (gurufocus.com, 2026-10-13)
TickrTrends take: Cadence Design Systems operates in the Technology sector, where strong fundamental quality metrics can sometimes be temporarily disconnected from market pricing. The company's GF Score of 99 suggests exceptionally high quality across growth, profitability, and momentum factors, which aligns with TickrTrends' current assessment that CDNS is undervalued. For investors focused on valuation, the recent share decline creates a potential opportunity to reconcile the stock's market price with its demonstrated operational strength, though watchers should monitor whether the quality metrics can sustain themselves through sector cycles. - Cadence Design Systems: It Seems That The Customers Are Gaining Leverage (NASDAQ:CDNS) (seekingalpha.com, 2026-10-13)
TickrTrends take: Cadence Design Systems operates in the Technology sector where customer dynamics can significantly influence pricing power and margin sustainability. TickrTrends currently derives an undervalued verdict for CDNS, which suggests the market may not be fully pricing in how customer leverage could affect future profitability and cash flows. Investors focused on valuation should monitor whether increased customer bargaining power translates into pressure on the company's revenue growth rates or operating margins in upcoming periods. - CDNS DCF Analysis: Intrinsic Value $146 vs Price $348 (gurufocus.com, 2026-10-13)
TickrTrends take: Cadence Design Systems trades at a significant premium to its discounted cash flow intrinsic value estimate, which contrasts with TickrTrends' current undervalued assessment of the stock. The gap between the DCF-derived value of 146 dollars and the current market price of 348 dollars suggests that valuation models and market sentiment may be diverging for this technology sector company. Investors focused on valuation metrics should monitor whether future earnings revisions or market conditions narrow this spread or reinforce one analytical perspective over the other.
What people are saying
Follow the CDNS conversation: Stocktwits · Reddit · X
TickrTrends weekly updates
- 2026-10-19 — TickrTrends' derived indicators for CDNS show that the RSI zone moved from overbought to neutral this week. The stock's sector discount rank shifted from number 91 to number 98 within the Technology sector. CDNS maintains an Undervalued valuation verdict according to TickrTrends' current assessment.
- 2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-11 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-10 — CDNS momentum shifted from none to B this week, while its RSI zone moved from neutral to overbought territory. The stock's sector discount rank declined from 83 to 89 among Technology companies, and it remains assessed as undervalued based on current valuation metrics.
- 2026-10-06 — No material change this week: the verdict, bands and grades all held steady.
- 2026-09-28 — CDNS shares moved higher in the sector discount rankings this week, improving from the 71st position to the 66th position among Technology stocks. This shift reflects a relative tightening of the company's valuation discount compared to its sector peers. The stock maintains an undervalued verdict according to current valuation metrics.
- 2026-09-21 — TickrTrends' 50/200-day trend indicator for CDNS shifted from mixed to downtrend status this week. Despite this technical deterioration, the current valuation verdict remains undervalued. The combination of weakening momentum indicators alongside the undervalued assessment suggests divergent signals in the stock's near-term price action and longer-term valuation positioning.
- 2026-09-17 — No material change this week: the verdict, bands and grades all held steady.
Frequently asked questions
Is CDNS stock undervalued?
Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), CDNS is trading at a 10–25% 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 #71 of 181 Technology stocks in TickrTrends' coverage by discount to fair value.
Is CDNS overbought or oversold?
CDNS's 14-day RSI is in neutral territory - neither overbought nor oversold.
When does CDNS report earnings next?
CDNS's next earnings report is scheduled for 2026-10-26 (post-market), per the published earnings calendar.
Does CDNS usually beat earnings estimates?
Over its last 8 reported quarters CDNS beat the consensus estimate 7 times and missed 1 times, by TickrTrends' comparison of reported and estimated EPS.
What do analysts say about CDNS?
Of 25 analysts covering CDNS, 23 rate it a buy, 2 a hold and 0 a sell - buy-leaning, with a consensus price target of $406 (+15.1% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.
More in Technology
Head-to-head comparisons
CDNS vs CPAY · CDNS vs GFS · CDNS vs IIIV · CDNS vs LYFT · CDNS vs OTEX