AlphaMadera's AlphaVal page computes Cadence Design Systems, Inc.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag CDNS as undervalued, fairly valued, or overvalued.

What is Cadence Design Systems, Inc.'s fair value?

Fair value for CDNS is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value CDNS?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from CDNS's most recent reported fundamentals.

CDNS - Cadence Design Systems, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $418.14 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong

Trading 56.6% above fair value

Current Price $364.54

Bear Case $145.60 60.1% downside ($145.60 - $364.54) / $364.54 = -60.1% 10% stage 1 growth, 11% discount

Fair Value $232.80 36.1% downside ($232.80 - $364.54) / $364.54 = -36.1% 16% stage 1 growth, 11% discount

Bull Case $332.10 8.9% downside ($332.10 - $364.54) / $364.54 = -8.9% 21% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

15.9%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (16% base case)

Terminal Value % of EV 43%

Implied Market Multiple 80.3x

Market is pricing in (growth) 27.5% vs our 15.9% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $418.14 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $232.80 per share.

Warnings

⚠ Stock-based employee pay equals 41% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.

ℹ Wall Street's average price target is $418.14 (from 31 analysts). Our estimate is 63% below the consensus -- consider that gap carefully.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions