Cadence Design Systems, Inc. (CDNS): Price and Financial Metrics

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CDNS Price/Volume Stats

Cadence Design Systems, Inc. (CDNS) Company Bio

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

We started the process of determining a valid price forecast for Cadence Design Systems Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cadence Design Systems Inc ranked in the 27th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 69.5%. As for the metrics that stood out in our discounted cash flow analysis of Cadence Design Systems Inc, consider:

• The company's balance sheet shows it gets 99% of its capital from equity, and 1% of its capital from debt. Notably, its equity weight is greater than 85.68% of US equities in the Technology sector yielding a positive free cash flow.
• The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 7.35% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• CDNS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 52.96% of tickers in our DCF set.

For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CDNS, try BIDU, SOHU, APH, BR, and ITNM.