Cadence Design Systems (CDNS) fundamentals: P/E, valuation, undervalued?

Cadence Design Systems · Information Technology · ref. ETF XLK · price $347.55
Logo Cadence Design SystemsSee the full Cadence Design Systems (CDNS) profile
In short — Cadence Design Systems trades at 66.7× earnings (P/E), 36.4× forward, with a net margin of 23.6 % and revenue growth of +24 %. Read: Cheap for the growth (P/E 36 for ~125% growth (PEG 0.3)).

Is Cadence Design Systems stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$347.55-1.9% over range
Aug 28, 25low $265.66 · high $416.39Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Buy
90% recommend buying · 10 analysts
Valuation : Cheap for the growth — P/E 36 for ~125% growth (PEG 0.3)

Valuation

66.7
P/E (price/earnings)
36.4
Forward P/E
0.53
PEG
14.0
Price/book (P/B)
$95.7B
Market cap
5.21
EPS

Profitability & growth

23.6 %
Net margin
+24 %
Revenue growth
+125 %
Earnings growth
$2.7B
Total debt

Cadence Design Systems income statement

Fiscal yearRevenueNet incomeMargin
2022$3.6B$849M23.8 %
2023$4.1B$1.0B25.5 %
2024$4.6B$1.1B22.7 %
2025$5.3B$1.1B20.9 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Cadence Design Systems's P/E and is the stock undervalued? What's a good P/E?

Cadence Design Systems's P/E is 66.7 (forward 36.4). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".

Is Cadence Design Systems profitable?

Cadence Design Systems has a net margin of 23.6 % (EPS 5.21). The company is profitable.

Is CDNS stock expensive?

Our read: "Cheap for the growth" — P/E 36 for ~125% growth (PEG 0.3). Cross-check with growth and sector.

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