22 / 26 · EDA + IP

CDNS

Cadence Design Systems

1.5%target weight

Latest available close$334.20-4.1% · vs previous close

DAILY CLOSE · USD2026-10-13Yahoo Finance ↗

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Explore a date

Daily candles, not a live feed. Price series is split-adjusted; total-return mode uses provider-adjusted prices including distributions. The chart does not predict returns.

A great business. At what price?

Test earnings growth against a change in valuation. All multiples below are your assumptions — not current company fundamentals.

Illustrative price CAGR—

CAGR = (1 + EPS growth) × (exit P/E ÷ entry P/E)^(1/years) − 1. Excludes dividends, dilution beyond EPS, taxes and fees. Not a price target. Not suitable for gold, bonds or companies with negative earnings.

RESEARCH ENGINE / 1.2

What must this price deliver?

Inspect reported numbers, test your assumptions and follow the next filing. A calculation is not an approved investment case.

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NORMALIZATION / v1.0.0

Normalization workpaper

A company-specific protocol, not an approved normalized cash flow.

Reported proxy available · normalization pending

Model familyEquity cash-per-share DCF

OCF − cash capex / diluted share5.81 USD

Price / reported cash proxy48.72×

Required adjustment tests

sbc
Measure dilution and treat share compensation consistently with per-share cash.
acquisitions
Build a pro-forma organic base and include the full capital paid for acquisitions.
contract quality
Convert backlog/RPO into dated probability-weighted cash; never count face value as equity.

Reported financial base

Annual period: 2025-01-01 → 2025-12-31Filed: 2026-02-19Reporting currency: USDLast source retrieval: 2026-09-18T22:00:49.022Z

Unreviewed extraction

Reported financial base
Metric	Value	Unit	Source
Revenue	5,296,759,000	USD	us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax ↗
Operating income	1,492,042,000	USD	us-gaap:OperatingIncomeLoss ↗
Net income	1,108,888,000	USD	us-gaap:NetIncomeLoss ↗
Operating cash flow	1,728,781,000	USD	us-gaap:NetCashProvidedByUsedInOperatingActivities ↗
Cash capital expenditure	141,871,000	USD	us-gaap:PaymentsToAcquirePropertyPlantAndEquipment ↗
Share-based compensation	455,175,000	USD	us-gaap:ShareBasedCompensation ↗
Weighted diluted shares	273,312,000	shares	us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding ↗
Cash and equivalents	3,001,317,000	USD	us-gaap:CashAndCashEquivalentsAtCarryingValue ↗
Current long-term debt	—	—	Missing / manual review
Noncurrent long-term debt	—	—	Missing / manual review

OCF − cash capex (not normalized)1,586,910,000 USDNormalized owner cash: not approved

Annual figures, not trailing twelve months. No automatic currency/ADR conversion. Cash proxy excludes review of leases, debt service, SBC, acquisitions and cycle. Missing values are not zero.

Company-specific method

Recurring-software DCF with stock compensation and explicit multiple-compression stress.

Your scenario · not our forecast

Equity-per-share DCF: do not subtract net debt again. Future dilution must already be included in cash-per-share growth. This does not measure analyst consensus. Replacement capex and sustainable terminal cash still require review.

What changed?

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FUNDAMENTAL RESEARCH · 2026-09-06

The investment case, under examination.

A dated research map, not completed valuations. The 25-company portfolio baseline is unchanged; IBM is monitored at 0% outside it. Public facts do not establish an edge: every hypothesis still needs normalized financials, price-implied expectations and independent forward tests.

Hypothesis · not a trading signal

Q2 2026 · Published 2026-07-27 · Source checked 2026-09-06

01 / What the issuer reported: Revenue was $1.584bn; backlog $8.1bn; RPO expected within twelve months was $4.2bn.
02 / Our hypothesis — not established alpha: Design complexity and more custom chips can increase software value; AI productivity may also pressure seat-based pricing.
03 / What to measure next: Organic recurring growth, renewal economics, RPO conversion, cash flow and stock-based compensation.
04 / What would challenge the thesis: Reassess if AI usage grows without monetization, renewal pricing weakens or dilution offsets cash growth.
05 / Appropriate valuation method: Recurring-software DCF with stock compensation and explicit multiple-compression stress.
06 / Still missing: Missing: pricing/retention evidence and current price-implied duration of high growth.

No measured consensus gap or approved price target. A familiar good business can still be an expensive stock.

Read the primary source ↗

Issuer-reported figures, not an independent accounting audit. Review after the next report or material filing. These review triggers are proposed, not automatic sell rules. Weights and paper mandates are unchanged.

Why this position exists

EDA and system-design software

Chip and system complexity expands software content and multiphysics-design value.

Principal risk

High valuation, export rules and customer consolidation.

What the daily radar monitors

01BacklogPRIMARY KPI

02AI EDA upsellTREND + GUIDANCE

03System design growthTHESIS TRIGGER

Decision rule

A headline never changes a weight by itself. The system verifies the primary source, tests the KPI trend and creates a proposal for the investment committee.