What is Cadence Design Systems Inc worth?
With the base-case assumptions below, a discounted cash flow model on Cadence Design Systems Inc's reported free cash flow gives $189.95 per share. The share price was $326.13 on September 25, 2026, 72% above that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 9.5% | 10.0% | $119.34 | -63% |
| Base | 14.5% | 9.0% | $189.95 | -42% |
| Bull | 19.5% | 8.0% | $330.58 | +1% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $244.55 | $261.55 | $282.31 | $308.28 | $341.65 |
| 8.0% | $203.56 | $214.58 | $227.61 | $243.23 | $262.33 |
| 9.0% | $173.73 | $181.26 | $189.95 | $200.10 | $212.08 |
| 10.0% | $151.09 | $156.45 | $162.52 | $169.46 | $177.47 |
| 11.0% | $133.38 | $137.30 | $141.70 | $146.63 | $152.23 |
Where the presets come from
Base: years 1 to 5 grow at Cadence Design Systems Inc's revenue growth rate over the last 5 fiscal years (14.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions