CDNS

Cadence Design Systems

Fundamental data last updated:March 30, 2026

company profile

SECTOR

Technology

industry

Software - Application

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/27/26

Business Summary

Cadence Design Systems develops and sells software, hardware, and intellectual property used to design semiconductors and complex electronic systems. Its solutions enable customers to create integrated circuits, system-on-chip designs, and other advanced electronic products used across multiple industries.

VALUATION

P/E

67.1

Market Cap ($M USD)

$75,033

Forward P/E

28.9

PEG

2.7

PRICE TO SALES

14

PRICE TO BOOK

13.7

EV / EBITDA

39.8

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$4.09

Next Year EPS Growth Estimate

$9.41

Next Year Revenue Growth Estimate

12.80%

Return on Equity (ROE)

20.30%

Operating Margin

31.20%

Debt-to-Equity

0.5

Piotroski F-Score

7

Altman Z-Score

12

Return on Invested Capital (ROIC)

14.60%%

Current Ratio

2.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Cadence Design Systems operates in the Technology sector within Software – Application and trades on the Nasdaq with a market cap of $75,033M. The company has a Price/Earnings ratio of 67.1 and a Forward P/E of 28.9, with a PEG Forward of 2.7, reflecting expectations for future earnings growth. Profitability metrics include a 20.30% operating margin and 12.80% return on equity, alongside a Debt/Equity ratio of 31.20%.

AI Exposure / Tech Reliance

As a software application company serving advanced technology markets, Cadence Design Systems is closely tied to ongoing digital transformation and AI-driven computing trends. Its business model inherently relies on continued demand for sophisticated design software in high-performance and AI-enabled systems.

The Bull Case

The company’s forward valuation improves meaningfully from a P/E of 67.1 to a Forward P/E of 28.9, supported by estimated EPS of $4.09 next year and projected sales growth of $9.41. Solid operating margins of 20.30% and moderate leverage with a 31.20% Debt/Equity ratio provide a foundation for sustained profitability.

The Bear Case

The current P/E of 67.1 and Price/Sales ratio of 14 indicate a premium valuation that may limit upside if growth expectations are not met. A PEG Forward of 2.7 suggests that projected growth may not fully justify the elevated valuation multiples.

Market Sentiment & Smart Money

Short Interest %

2.50%

Analyst Consensus

1.39

Average Analyst Price Target

$374.95

Institutional Ownership %

90.10%

1-Year Beta

1.35

Insider Buying % (6 Mo)

0.40%%

Distance to 52-Week High

72.20%%

Distance to 52-Week Low

122.70%%