Cadence Design Systems develops, sells, leases, and licenses electronic design automation software, emulation and prototyping hardware, verification intellectual property, and design intellectual property (design IP) for semiconductor and electronics systems industries worldwide. The company was founded in 1988 and is based in San Jose, California.
CDNS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CDNS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cadence Design Systems Inc ranked in the 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cadence Design Systems Inc ended up being:
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately just 8.71% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Cadence Design Systems Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Cadence Design Systems Inc? See AMOT, LFUS, TDY, ACIW, and IEC.
DALLAS, Sept. 15, 2020 /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) today announced a new custom version of the PSpice® simulator from Cadence Design Systems Inc. that enables engineers to simulate complex analog circuits with unlimited analysis of TI power and signal-chain…
The technology sector has been on a tear for most of the year. While everyone is familiar with the big names in tech, I’m focused on a company that has also performed well this year but is not a household name. Cadence Design Systems (CDNS) has seen its share price...