Cadence Design Systems, Inc. (CDNS) Stock Analysis
Over the past 10 years, Cadence Design Systems (CDNS) earnings per share (EPS) grew 16.6% a year, revenue grew 12.0% a year and free cash flow grew 16.9% a year, with an average return on invested capital (ROIC) of 17.5%. CDNS stock trades at $327.06, a P/E of 40.9, below its historical average of 70.5. Analysts' average 12-month price target is $403.27 (+23.3%).
Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks.
Exhibit A Growth Dossier
| Metric | 10yr | 5yr | 1yr | Grade |
|---|---|---|---|---|
| Book Value/Share GrowthBV/S | 16.3% | 17.6% | 35.4% | A+ |
| EPS GrowthEPS | 16.6% | 13.6% | 18.5% | A |
| Revenue GrowthRevenue | 12.0% | 14.6% | 14.7% | A- |
| Cash Flow GrowthCash Flow | 16.9% | 14.4% | 5.9% | B+ |
| ROICROIC | 17.5% | 18.7% | 14.1% | A |
Exhibit B Valuation Ledger
- Current EPS
- $7.99
- Historical Avg P/E
- 70.5
- Future P/E (used for sticker price)
- Projected EPS (10yr)
- Sticker Price (10yr)
- Price for 15% Annual Return
- Expected Annual Return
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Not investment advice — a structured read of historical fundamentals, not a forecast or recommendation. Always do your own research.
Exhibit C Raw Data (last 10 years)
| Metric | Trend | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Book Value / ShareBV/S | $4.41 | $2.55 | $3.53 | $4.58 | $7.50 | $8.92 | $9.83 | $9.98 | $12.48 | $17.07 | $20.03 | $24.83 | |
| Basic EPSEPS | $0.88 | $0.71 | $0.75 | $1.26 | $3.62 | $2.16 | $2.54 | $3.13 | $3.86 | $3.89 | $4.09 | $7.99 | |
| RevenueRevenue | $1,702,091,000 | $1,816,083,000 | $1,943,032,000 | $2,138,022,000 | $2,336,319,000 | $2,682,891,000 | $2,988,244,000 | $3,561,718,000 | $4,089,986,000 | $4,641,264,000 | $5,296,759,000 | $5,837,623,000 | |
| Free Cash FlowCash Flow | $333,392,000 | $391,167,000 | $412,839,000 | $543,248,000 | $654,995,000 | $810,109,000 | $1,034,077,000 | $1,117,679,000 | $1,246,673,000 | $1,118,009,000 | $1,586,910,000 | $1,678,694,999 | |
| ROIC (%)ROIC | 14.8% | 13.4% | 11.3% | 19.6% | 18.3% | 19.1% | 20.7% | 22.4% | 23.0% | 13.4% | 14.1% | — |
The exact underlying data used to compute the growth rates and grades above. The highlighted TTM column is the trailing twelve months through the most recently reported quarter.
Ticker INVESTigator Price Target
Analyst Data
Price Target
Where the stock trades today vs. the range of 12-month price targets from covering analysts.
31 firms rate it — 26 buy, 4 hold, 1 sell · Most recent Oct 2026
CDNS Stock FAQ
What is CDNS's stock price target?
The average 12-month analyst price target for CDNS is $403.27, with a range of $300.00 to $450.00. That is +23.3% from the current price of $327.06.
Do analysts rate CDNS a buy?
Most rate it a buy. Of 31 firms covering Cadence Design Systems, the ratings are 26 buy or strong buy, 4 hold and 1 sell or strong sell.
How fast is Cadence Design Systems growing?
Annual growth rates for CDNS. EPS: 16.6% over 10 years, 13.6% over 5 years, 18.5% over 1 year. Revenue: 12.0% over 10 years, 14.6% over 5 years, 14.7% over 1 year. Free cash flow: 16.9% over 10 years, 14.4% over 5 years, 5.9% over 1 year. Book value per share: 16.3% over 10 years, 17.6% over 5 years, 35.4% over 1 year.
What is CDNS's ROIC?
Cadence Design Systems' return on invested capital (ROIC) was 14.1% in fiscal 2025. Its 10-year average ROIC is 17.5%. ROIC above 10% is generally a sign of a business with a durable competitive advantage.
What is CDNS's P/E ratio?
CDNS's current P/E ratio is 40.9, compared with a historical average of 70.5. Trailing earnings per share are $7.99.
What is Cadence Design Systems' market cap and stock price?
CDNS last traded at $327.06 as of October 19, 2026. Its 52-week range is $262.75 to $416.69. Cadence Design Systems has a market cap of $90.07B.
Exhibit D Related Coverage
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Data as of October 19, 2026. Findings are derived from historical fundamentals — not a forecast, not advice. Cross-examine before you invest.
Grades are produced by Ticker INVESTigator's own model from public financial data and are for informational and educational purposes only. They are not investment advice or a recommendation to buy or sell any security. Do your own research.