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Cadence Design Systems, Inc. (C1DN34) fair value: what the stock is really worth

As of Oct 2, 2026: fair value of Cadence Design Systems, Inc. BRL 29.84, price BRL 53.80, upside -44.5%, quality 73 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? Yes
  3. Add to watchlist

Technology · BR · Home US

CD Some data Sep 29, 2026

Cadence Design Systems, Inc.

C1DN34 · SA

Stretched ValuationQuality growthStrong overvaluation with only moderate quality.

!Fair value R$29.84 · Strongly overvalued (−44.5%)
✓Quality 73/100
✓Healthy Growth (revenue 3y +14.1 %/yr)
✓Highly profitable · 21.2% net margin (TTM)
✓Low debt · generates free cash flow
✓Ranks above peers (6/10)
✓Wide moat 79/100
!Insider activity 40/100
!Evidence only medium, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

R$60.74 R$19.51 Fair Value R$29.84 Jun 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 29, 2026.

How to read this chart

60‑month range R$19.51 – R$60.74 · fair‑value band R$19.90 – R$41.54 · the R$53.80 price screens above the R$29.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 29, 2026.

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Company profile

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions.

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Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

Stock analysis

Cadence Design Systems, Inc. (C1DN34) currently trades at R$53.80, while our model-based Fair Value estimate is R$29.84, 44.5% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of R$22.18 per share, and 0 of the 24 models we run sit above the R$53.80 price.

Bear case: the Economic Profit group reads lowest at R$5.35, and 24 of the 24 models stay below the price. Evidence for this calculation is medium.

Scenario range: R$19.90 (bear) to R$41.54 (bull), the price of R$53.80 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 73/100 (solid quality), in the Technology sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Cadence Design Systems, Inc. reported revenue of $5.3B in FY2025 versus $3.6B in FY2022, a compound +14.1%/yr. Reported net income was $1.1B in FY2025, compounding +9.3%/yr from FY2022.

Key figures

Market cap R$545B (≈ $104B) · P/E ratio 88.5 · P/S ratio 18.5 · EPS (TTM) R$11.16 · Net margin 20.9% · Return on equity 20.7% · Return on assets (EBIT) 18.2% · Operating margin 29.7%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).

What moves the price

The share trades about 11% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at −45%, C1DN34 screens richer than that median.

Fair Value models

Bear R$19.90 Fair Value R$29.84 Bull R$41.54
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (R$8.44 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF R$12.92 R$24.62 R$46.06 73
Growth DCF R$12.70 R$23.07 R$41.32 72
EPV R$6.50 R$7.54 R$8.45 71
All 24 models by family
DCF Models
FCF DCF R$12.92 R$24.62 R$46.06 73
Owner Earnings R$9.97 R$18.94 R$35.37 70
5Y Revenue Exit R$9.41 R$16.21 R$25.54 68
5Y EBITDA Exit R$12.52 R$22.86 R$36.19 70
5Y P/E Exit R$12.54 R$22.91 R$35.15 66
10Y Revenue Exit R$10.20 R$17.20 R$28.23 62
10Y EBITDA Exit R$12.56 R$22.18 R$37.48 63
10Y P/E Exit R$12.58 R$22.22 R$36.58 59
Earnings-Based
Graham-Dodd R$4.18 R$21.99 R$30.43 61
Lynch FV R$6.04 R$8.63 R$11.22 58
PEG = 1.0 R$6.04 R$8.63 R$11.22 55
EPV R$6.50 R$7.54 R$8.45 71
Multiples
P/E Multiple R$12.89 R$17.19 R$21.49 63
P/S Multiple R$7.83 R$10.44 R$13.05 58
P/B Multiple R$7.83 R$10.44 R$13.05 55
EV/EBIT R$15.16 R$20.12 R$25.08 66
EV/EBITDA R$13.15 R$17.43 R$21.72 67
EV/Revenue R$7.81 R$11.03 R$14.25 54
Asset-Based
NCAV (Graham) R$1.52 R$2.03 R$3.03 54
Growth DCF
Growth DCF R$12.70 R$23.07 R$41.32 72
Rev-Margin DCF R$9.41 R$16.04 R$24.98 68
Economic Profit
Residual Income R$3.92 R$5.35 R$9.64 64
ROIC Compounder R$7.51 R$10.14 R$13.57 69
Growth Earnings
Growth-Adj P/E R$10.52 R$15.03 R$19.54 65

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Quality Score breakdown

Overall quality 73/100

Of which business quality 74 · Market factors (momentum, volatility) 45

Profitability 68
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 91
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 86
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+14.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+5.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.5%
Dividend (yield on the price)0.0%
Profit margin 2022 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 28%

C1DN34 screens overvalued: fair value 45% below the price. Compare with SAP SE →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 687 stocks

Beats the industry median on 6/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 73 · Top 25%
Fair Value upside −35.7% · Below median
Profitability
Return on equity (TTM) 20.7% · Top 25%
Return on assets 10.4% · Top 25%
Net margin (TTM) 21.2% · Top 25%
Operating margin (TTM) 29.7% · Top 25%
Growth and dividend
Revenue growth 18.7% · Above median
Balance sheet
Debt / equity 0.45× · Highest 25%

Valuation Multiplesvs Software - Application median · lower = cheaper

P/E (TTM) 88.5× · Priciest 25%
PEG 3.59× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 27
FUTURE (revenue growth)94 · sector 41
PAST (return on equity)83 · sector 15
HEALTH (low debt)77 · sector 97
DIVIDEND (yield)0 · sector 30

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Uber Technologies, Inc UBER $69.36 $103.69 +49%
Snowflake Inc SNOW $330.31 $74.36 −77%
Automatic Data Processing, Inc ADP $261.80 $150.01 −43%
Adobe Inc ADBE $239.94 $454.04 +89%
Datadog, Inc DDOG $268.70 $32.52 −88%
Intuit Inc INTU $268.03 $459.14 +71%

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R$29.84 −45%Fair Value
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Cite: Fair Value Calculator (2026). "Cadence Design Systems, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/C1DN34

Frequently asked questions

Is Cadence Design Systems, Inc. (C1DN34) overvalued or undervalued?
As of Sep 29, 2026, our model estimates a fair value of R$29.84 versus a price of R$53.80, about −45% upside (overvalued).
What is the fair value of C1DN34?
Our model-based fair value for Cadence Design Systems, Inc. is R$29.84 (as of Sep 29, 2026), built from audited fundamentals. The current price: R$53.80.
What is the quality score of C1DN34?
Cadence Design Systems, Inc. has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cadence Design Systems, Inc. (C1DN34)?
Our model-based price target is the fair value of R$29.84 (as of Sep 29, 2026) from 24 valuation models. Cautious scenario R$19.90, optimistic scenario R$41.54. It is a calculation from audited fundamentals, not an analyst target.
What is the Cadence Design Systems, Inc. stock forecast for 2026?
Our models put fair value at R$29.84, about −45% upside versus a price of R$53.80 (overvalued). Cautious scenario R$19.90, optimistic scenario R$41.54. The calculation is refreshed regularly with new filings.
What is the revenue of Cadence Design Systems, Inc. (C1DN34)?
Cadence Design Systems, Inc. reported trailing-twelve-month revenue of about $5.5B (latest available figure, as of Sep 29, 2026).
What is the intrinsic value of Cadence Design Systems, Inc. (C1DN34)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cadence Design Systems, Inc. it is R$29.84 per share (as of Sep 29, 2026), against a price of R$53.80. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Cadence Design Systems, Inc. stock overvalued or undervalued in 2026?
As of Sep 29, 2026, C1DN34 trades above its calculated fair value: price R$53.80, fair value R$29.84, a gap of about −45% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of C1DN34?
No. The price is what the market pays today (R$53.80); the fair value is what the company's own numbers justify (R$29.84). For Cadence Design Systems, Inc. the two are R$23.96 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cadence Design Systems, Inc. worth?
The market values Cadence Design Systems, Inc. at about R$545B (market capitalisation, as of Sep 29, 2026). Per share that is R$53.80; our models calculate a fair value of R$29.84 per share.
What do the bullish and bearish scenarios say about C1DN34?
Our models span a range for Cadence Design Systems, Inc.: cautious scenario R$19.90, base R$29.84, optimistic R$41.54 per share (as of Sep 29, 2026, price R$53.80). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of C1DN34?
Cadence Design Systems, Inc. trades at a price-to-earnings ratio of 88.5 (as of Sep 29, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$29.84 is built from several models across several years. Other multiples: PEG 3.6.
What is the PEG ratio of C1DN34?
The PEG ratio of Cadence Design Systems, Inc. is 3.59 (P/E divided by earnings growth, as of Sep 29, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Cadence Design Systems, Inc. (C1DN34)?
Balance-sheet figures for Cadence Design Systems, Inc. (as of Sep 29, 2026): return on equity 20.7%, debt of 0.45 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is C1DN34 from its 52-week high?
Cadence Design Systems, Inc. trades at R$53.80, about 11% below its 52-week high of R$60.74 and 38% above the low of R$39.11 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of R$29.84 is for.
Which stocks are comparable to Cadence Design Systems, Inc.?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cadence Design Systems, Inc. stock attractive at the current price?
The data as of Sep 29, 2026: price R$53.80, calculated fair value R$29.84 (−45%), Quality Score 73/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of C1DN34 calculated?
We run Cadence Design Systems, Inc. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R$29.84, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Cadence Design Systems, Inc. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cadence Design Systems, Inc. (C1DN34)?
The closing price on Oct 2, 2026 was R$53.80. Our model-based fair value is R$29.84, about −45% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cadence Design Systems, Inc. right now?
A high-quality business (quality 73/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case (R$41.54). The favourable scenario is already priced in. A fairly wide model range (R$19.90 to R$41.54) leaves room in how you read the outcome.

Key figures of Cadence Design Systems, Inc.

How large is the market capitalisation of Cadence Design Systems, Inc. (C1DN34)?
The market capitalisation of Cadence Design Systems, Inc. is R$545B (≈ $104B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cadence Design Systems, Inc. (C1DN34)?
The price-to-sales ratio of Cadence Design Systems, Inc. is 18.5 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cadence Design Systems, Inc. (C1DN34)?
Earnings per share at Cadence Design Systems, Inc. are R$11.16 (price ÷ EPS = P/E 88.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Cadence Design Systems, Inc. (C1DN34)?
The net margin of Cadence Design Systems, Inc. is 20.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cadence Design Systems, Inc. (C1DN34)?
The return on equity (ROE) of Cadence Design Systems, Inc. is 20.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cadence Design Systems, Inc. (C1DN34)?
On an EBIT basis the return on assets of Cadence Design Systems, Inc. is 18.2% (avg 4y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cadence Design Systems, Inc. (C1DN34)?
The operating margin of Cadence Design Systems, Inc. is 29.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cadence Design Systems, Inc. (C1DN34)?
Revenue at Cadence Design Systems, Inc. is growing +18.7% versus a year earlier (3y avg +14.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cadence Design Systems, Inc. (C1DN34)?
Earnings per share at Cadence Design Systems, Inc. are growing +23.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Cadence Design Systems, Inc. (C1DN34) generate?
The free cash flow of Cadence Design Systems, Inc. is $1.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
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