Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-24), Cadence Design Systems's Intrinsic Value: Projected FCF is $58.14. The stock price of Cadence Design Systems is $281.58. Therefore, Cadence Design Systems's Price-to-Intrinsic-Value-Projected-FCF of today is 4.8.
The historical rank and industry rank for Cadence Design Systems's Intrinsic Value: Projected FCF or its related term are showing as below:
CDNS'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.33 Med: 2.42 Max: 4.84
Current: 4.84
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Cadence Design Systems was 4.84. The lowest was 1.33. And the median was 2.42.
CDNS's Price-to-Projected-FCF is ranked worse than 84.18% of 1264
companies
in the Software industry
Industry Median: 1.585
vs CDNS: 4.84
Cadence Design Systems Intrinsic Value: Projected FCF Historical Data
The historical data trend for Cadence Design Systems's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Cadence Design Systems's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cadence Design Systems Price-to-Projected-FCF Distribution
For the Software industry and Technology sector, Cadence Design Systems's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Price-to-Projected-FCF falls into.
Cadence Design Systems Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cadence Design Systems (NAS:CDNS) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Cadence Design Systems's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
281.58
/
58.143647843438
=
4.84
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cadence Design Systems Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Cadence Design Systems's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Cadence Design Systems (Cadence Design Systems) Business Description
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.
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