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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cadence Design Systems Inc. To summarize, we found that Cadence Design Systems Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 45%. 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 merely 9.43% 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 2%; for context, that number is higher than 48.8% of tickers in our DCF set.
As a business, Cadence Design Systems Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
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 INOD, MEI, FIS, FLIR, and ITNM.
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...