CDNS logo

Cadence Design Systems (CDNS)$373.59

Market Cap: 84.72 BCurrency: USD

Research Snapshot

Static fundamentals, valuation context, and investor signals for Cadence Design Systems (CDNS).

TECHNOLOGY
SOFTWARE - APPLICATION
DCF ready

Valuation

51.5x

EV/FCF, 1.9% FCF yield

Quality

20.3%

ROIC, 30.0% FCF margin

Growth

14.6%

5Y sales (revenue) CAGR

Balance sheet

0.0x

Debt/equity, 2.9x current ratio

Superinvestors

2

Top: Jensen Investment Management (2.8%)

Strengths to research

  • Revenue compounded at 14.6% over five years.
  • Free cash flow compounded at 14.4% over five years.
  • Return on equity is strong at 20.3%.
  • Free cash flow margin is healthy at 30.0%.

Watchouts

  • P/E is elevated at 92.0x.
  • P/FCF is elevated at 53.4x.
Annual data: 10 periods
Quarterly data: 23 periods
Stock snapshot: May 25, 2026
Static dataset: May 25, 2026

Quality Scorecard

Build-time composite score for CDNS.

Grade B
80
/ 100

Peer Comparison

Target stock against 8 market-cap comparable peers.

Heat map: red worst to green best
CDNS
Target
Cadence Design Systems$84.7B92.0x51.5x20.3%14.6%30.0%N/A-1.7xN/A
CNSWFConstellation Software Inc.$76.6BN/AN/AN/AN/AN/AN/AN/AN/A
APPApplovin Corp.$102.1B49.4x26.0x59.0%30.4%72.5%N/A0.2xN/A
MSTRMicroStrategy Inc.$105.7B-10.5x-1478.6x-7.4%-0.1%-15.8%68.7%N/AN/A
ROPRoper Technologies Inc.$61.4B23.0x27.7x5.3%14.5%32.1%69.2%2.9xN/A
ADSKAutodesk Inc.$59.7B46.1x24.9x20.3%13.7%33.4%91.0%0.2xN/A
ADPAutomatic Data Processing Inc.$123.4B22.6x24.3x65.9%7.1%24.0%N/AN/AN/A
SHOPShopify Inc.$127.0B109.6x62.5x9.1%31.6%17.4%48.1%-1.0xN/A
SNOWSnowflake Inc.$56.1B-43.6x47.5x-69.1%51.2%23.9%67.2%N/AN/A

Financial Charts

No financial data available for CDNS (annual).

2 superinvestors own CDNS

Current quarter ownership and quarter-over-quarter share changes.

Superinvestor ownership
FundSharesValue% PortfolioQoQ Change
Jensen Investment Management

Jensen Investment Management

505,861$141M2.77%0.0%
Dodge & Cox

Dodge & Cox

230,899$64M0.04%▼ -2.7%