Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (23 analysts).
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Base Case $163.79 Implied EV: $46.71B |
What growth rate is the market pricing in at $387?
The market implies +28.4% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +25.3%, reflecting heavy growth investment.
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
"Market is pricing this stock without strong emotion in either direction"
Price far exceeds estimated intrinsic value — significant downside risk at current levels
