Stock Valuation / CDNS
Is Cadence Design Systems, Inc. (CDNS) Overvalued? Fair Value & 5-Year Target
Cadence Design Systems, Inc. trades at $334.20 (P/E 66.44). Our reference model estimates a fair value of $216.83 at its recent average P/E of 43.11.
| Current price | $334.20 |
|---|---|
| Current EPS | $5.03 |
| Current P/E | 66.44 |
| Average P/E | 43.11 |
| Fair value (at avg P/E) | $216.83 |
| Upside to fair value | -35.1% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $252.93 |
What drives CDNS's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Cadence Design Systems, Inc.
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 Innovus 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 pro
Frequently asked questions
What is CDNS's fair value?
At its recent average P/E of 43.11, Cadence Design Systems, Inc. (CDNS) has a reference fair value of about $216.83, which is -35.1% versus the current price of $334.20.
Is Cadence Design Systems, Inc. (CDNS) overvalued or undervalued?
Based on the average-P/E reference model, Cadence Design Systems, Inc. looks overvalued relative to fair value by roughly +35.1%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for CDNS?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $252.93. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive CDNS valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.