AlphaStocks
4.5
Weak

CADENCE DESIGN SYSTEMS INC (CDNS)

Information Technology / Application Software

S&P 500

$332.74

Below average on several measures. Research carefully.

Weak

Score based on 4 of 5 models — moderate confidence

#677out of 1123 in Information Technology

Is CADENCE DESIGN SYSTEMS INC a Good Investment in 2026?

CADENCE DESIGN SYSTEMS INC (CDNS) scores 4.5 out of 10 on AlphaStocks' composite model, earning a Weak rating. The Piotroski model rates CADENCE DESIGN SYSTEMS INC as Attractive (5/9). However, the Graham model rates it Caution — Significantly above fair value. CADENCE DESIGN SYSTEMS INC currently trades above its estimated fair value of $164, suggesting limited upside at current prices. CADENCE DESIGN SYSTEMS INC ranks #677 out of 1123 stocks in the Information Technology sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E82.0ROE16.1Market Cap91B

Estimated Fair Value

$163.89103% above

Trading above estimated fair value. P/e of 82x implies high growth expectations. eps growth of 5% may not justify the premium.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Attractive

5/9

Buffett

Neutral

Business quality & competitive moat

Graham

Caution

Significantly above fair value

Lynch

Attractive

PEG 4.2 · Fast Grower

Greenblatt

Limited Data

Earnings yield + return on capital

Frequently Asked Questions

Is CADENCE DESIGN SYSTEMS INC (CDNS) a good investment?
Based on AlphaStocks' composite analysis, CADENCE DESIGN SYSTEMS INC (CDNS) scores 4.5 out of 10, earning a Weak rating. This score is below average, suggesting caution. Trading above estimated fair value. P/e of 82x implies high growth expectations. eps growth of 5% may not justify the premium.
What is CADENCE DESIGN SYSTEMS INC's Piotroski F-Score?
CADENCE DESIGN SYSTEMS INC's Piotroski F-Score status is Attractive. The raw score is 5/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is CDNS overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $164, CDNS appears overvalued. The stock currently trades 103% above its estimated fair value. Trading above estimated fair value. P/e of 82x implies high growth expectations. eps growth of 5% may not justify the premium.
How does CDNS compare to other Information Technology stocks?
CADENCE DESIGN SYSTEMS INC ranks #677 out of 1123 stocks in the Information Technology sector, placing it in the top 60% of its sector by composite score. There are higher-ranked alternatives in this sector worth exploring.
What do investment models say about CDNS?
AlphaStocks evaluates CDNS using five proven investment models. Piotroski: Attractive; Buffett: Neutral; Graham: Caution; Lynch: Attractive. These models are combined into a single composite score of 4.5/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer