Does Cadence Design Systems Inc (CDNS) have an economic moat?

MoatScan AI rates Cadence Design Systems Inc (CDNS) 68/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. Cadence Design Systems has one of the strongest franchises in electronic design automation, anchored by mission-critical tools that sit directly in the semiconductor tapeout path.

What is Cadence Design Systems Inc's moat score?

Cadence Design Systems Inc (CDNS) has a moat score of 68/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.

Is CDNS stock overvalued or undervalued?

MoatScan AI answers this by estimating CDNS's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.

What is Cadence Design Systems Inc's fair value estimate?

MoatScan AI derives Cadence Design Systems Inc's (CDNS) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.

Back to Database

CDNS$324.82

Cadence Design Systems Inc

Last Updated

Aug 17, 2026about 1 month ago

Moat & Trend

Management

AI Impact

Competitive Radar

Moat Score

68/100

Executive Summary

Cadence Design Systems has one of the strongest franchises in electronic design automation, anchored by mission-critical tools that sit directly in the semiconductor tapeout path. Its moat comes less from classic network effects and more from deep switching costs, proprietary algorithms, and an industry structure that supports only a few full-stack vendors. Cadence’s platform also reaches into PCB, package, system analysis, multiphysics, and IP, which increases workflow lock-in and expands its addressable market. The business is not invulnerable: customers can multi-home, Synopsys remains a powerful rival, and export controls can disrupt sales in specific geographies. Even so, the company’s position in qualified design flows and its broadening product stack make its competitive advantage durable, though not broad enough to justify a wide moat label.

Network Effects

Limited Ecosystem Pull

Pillar Strength

3.5/10

Cadence benefits from some ecosystem reinforcement, but not a true self-reinforcing network effect. Foundries, IP partners, and third-party tool integrations make its environment more valuable, and design teams often prefer to stay within a familiar flow that already interfaces with manufacturing and verification partners. Still, the value does not rise sharply simply because more customers join the platform. Chip design teams routinely multi-home across vendors, and many jobs are solved through best-of-breed point tools. The result is a modest ecosystem advantage rather than a strong network dynamic that would compound automatically with scale.

Switching Costs

Deep Flow Lock-In

Pillar Strength

8.5/10

Switching costs are one of Cadence’s strongest defenses. A chip design team that has qualified Virtuoso, Innovus, Tempus, Xcelium, Palladium, and related IP or signoff tools has invested heavily in scripts, methodologies, training, and historical design data. Replacing those tools can trigger schedule risk, verification gaps, and even costly respins if timing or power signoff changes late in the cycle. The pain is greatest on advanced nodes, where customers care most about reliability and certification. Competitors can win individual functions, but moving an entire taped-out flow is expensive enough that customers usually prefer incremental changes over wholesale replacement.

Intangible Assets

Proprietary Design Brands

Pillar Strength

8/10

Cadence’s intangible assets are strong because the company owns respected product brands, specialized engineering know-how, and proprietary IP that matter in high-stakes design work. Products such as Virtuoso, Spectre, JasperGold, Allegro, and Tensilica are well known within their niches, and Cadence has built credibility with leading semiconductor, automotive, aerospace, and systems customers. Its algorithms and libraries are not easily replicated quickly, especially where accuracy and signoff trust are essential. That said, these assets are not the same as a statutory monopoly. Patents help at the margin, but the real advantage is accumulated technical depth and customer trust built over decades.

Cost Advantages

Scale-Driven Efficiency

Pillar Strength

6.5/10

Cadence has real scale benefits, but they are not overwhelming enough to create a decisive low-cost position. Its broad installed base lets it spread R&D, validation, customer support, and cloud infrastructure costs across many products and end markets. That matters in a business where software must continuously adapt to new process nodes, architectures, and simulation demands. However, Synopsys operates at a similar scale, and large customers increasingly build some internal capability or pressure vendors on price. Cadence’s cost position is therefore better viewed as an efficiency edge from breadth and scale, not a structural cost moat that rivals cannot narrow.

Efficient Scale

Oligopolistic Market Structure

Pillar Strength

7.5/10

EDA is a textbook example of efficient scale at the high end. The number of customers is limited, the qualification burden is heavy, and the economics support only a few broad-platform vendors that can afford decades of R&D. Cadence and Synopsys dominate the most important segments, with Siemens EDA as a smaller but still relevant competitor. New entrants face a steep hurdle: they must match accuracy, integrate with foundry ecosystems, and earn trust on the final signoff path. The market is not a natural monopoly, but it is concentrated enough that incumbents enjoy durable entry barriers and can preserve pricing discipline over long periods.

Moat Type & Trend

Why this company earns its moat rating, and where the moat is heading

Moat Type

Narrow Moat

Trend

Positive

Why This Rating

Cadence has a real, durable advantage, but it is still best described as narrow rather than wide. The company sits in a critical duopoly with Synopsys and owns deeply embedded workflows across chip design, verification, and signoff, yet customers still multi-home and selectively swap tools by function. What should remain true in 20 years is that Cadence will be hard to rip out from qualified tapeout flows. What is less certain is broad, category-level dominance across every adjacent design domain, where standards, customer bargaining power, and a second strong rival limit absolute control.

Why This Trend

The moat is widening because Cadence keeps stitching more of the design stack together. Its AI-assisted flows, tighter integration between simulation, verification, and implementation, and acquisitions in multiphysics, packaging, and molecular modeling make it harder for customers to disaggregate spending. The trend would turn stable if Cadence merely held its current tool share; it would turn negative if Synopsys or in-house hyperscaler tools began winning qualification at meaningful scale, or if customers started breaking apart the integrated workflows Cadence is currently bundling.

Management Quality Assessment

Evaluating leadership track record, capital allocation, and governance

Verdict

Strong

Anirudh Devgan has been CEO since December 2021 and president since 2017, after joining Cadence in 2012 from IBM’s EDA business. Under his tenure Cadence has posted record revenue growth and maintained very high capital efficiency, with ROIC around 30% and above 20% on average in recent years. Management returns cash mainly through buybacks; the company authorized an additional $1 billion repurchase plan and generates over $1.5 billion of annual free cash flow. Cadence is not founder-led, but hired technical leadership appears to have strengthened the platform. Insider ownership is modest and directionally unclear. CEO pay was about $17 million in FY2023, down from $32 million, and the board is highly independent with no major governance red flags.

Key Highlights

Devgan has led Cadence as CEO since late 2021 and as president since 2017; since then the company has continued to deliver record growth and broadened beyond core EDA into AI, system analysis and computational biology.
Capital allocation looks disciplined: Cadence’s ROIC is roughly 30% trailing twelve months and has averaged above 20% recently, indicating strong reinvestment returns.
The company does not pay a dividend and has focused on share repurchases, including an additional $1 billion buyback authorization, funded by more than $1.5 billion of annual free cash flow.
Governance is clean by large-cap standards: 10 of 11 directors are independent, the chair is independent, and board committees are entirely independent.
CEO compensation was about $17 million in FY2023, well below the prior year’s roughly $32 million package, and is mostly equity-based; it appears high but not obviously misaligned given performance and peer norms.

AI Impact Assessment

Evaluating how AI strengthens or disrupts existing moat pillars

Net Reinforcer. AI strengthens Cadence’s moat mainly by deepening workflow integration and switching costs: ChipStack, AuraStack, and InnoStack embed agentic automation across front-end design, verification, PCB, packaging, and system-level integration, so the value comes from owning more of the customer design loop rather than from generic model access. That said, this is largely defensive rather than a new moat, because the company is already an entrenched EDA leader and AI mainly improves productivity and cross-sell inside existing accounts. The near-term uncertainty is whether AI-driven automation materially expands share versus Synopsys, or instead compresses pricing in lower-complexity tools as open-source and foundation-model workflows mature.

AI Opportunity Highlights

6 / 10

ChipStack combines Cerebrus, Verisium, and JedAI to automate chip design exploration and verification, which can shorten design cycles inside entrenched customer workflows.
AuraStack extends Cadence AI into PCB and advanced packaging, widening the company’s addressable workflow from chip design into system-level hardware integration.
InnoStack is being embedded in partner flows such as Rapidus’ advanced-node SoC design solution, increasing lock-in through certified co-developed workflows.
Cadence’s Palladium and Protium platforms gain value as AI raises verification demand for AI-accelerator and other high-complexity chip programs.

AI Threat Highlights

4 / 10

Open-source initiatives like OpenROAD can absorb simpler layout and automation tasks, putting price pressure on lower-complexity EDA segments.
Foundation-model copilots can commoditize routine scripting, verification setup, and first-pass optimization, shrinking differentiation in point tools.
Synopsys is pairing EDA with Ansys simulation, creating a broader bundle that can pressure Cadence if AI makes cross-stack integration easier to replicate.
Large customers with in-house silicon teams may use AI to automate more of their own design flow, reducing dependence on third-party tooling over time.

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Last Updated

Aug 17, 2026about 1 month ago

Target Price

Analyst Consensus

FAIR VALUE

Financial Strength

Financial Score

81/100

Executive Summary

Cadence Design Systems’ most notable strength is its durable cash-generating software model, supported by exceptional margins and strong liquidity. Revenue has compounded steadily through FY2025, with gross margin near 86% and operating margin around 31%, while free cash flow remains robust at roughly $1.7bn TTM on disciplined capex. The balance sheet is healthy, with current assets and cash rising materially and working capital ample, though debt has increased and warrants monitoring. Profitability and cash flow remain stronger than the moderation in revenue growth and the recent softening in ROA, ROE, and asset turnover suggest, indicating some efficiency pressure rather than structural weakness. Forward estimates still point to reacceleration in revenue and EPS, and analyst sentiment is constructive. Overall, CDNS presents a high-quality financial profile with strong cash generation, solid solvency, and only moderate leverage concerns, consistent with its 8/10 to 8.5/10 ratings.

Income Statement

Revenue · Margins · Profitability

Section Score

8/10

Assuming Cadence Design Systems is a software and electronic design automation company, the profile looks strong. Revenue rose steadily from FY2022 to FY2025, while TTM growth slowed to 10.2% from 14.1% in FY2025, suggesting some normalization rather than acceleration. Gross margin remains excellent near 86% and operating margin has expanded to roughly 31%, showing good conversion of sales into profit. Net income growth is positive but less consistent than revenue, reflecting rising R&D and SG&A, plus volatility in other income/expense and a higher tax rate. These one-offs matter, but core earnings power remains durable. Overall, performance is above typical software-sector norms, with the main watchouts being slower growth and expense discipline.

Financials are in millions USD unless otherwise specified

Metric	FY 2022	FY 2023	FY 2024	FY 2025	TTM
Period Ending	Dec 31, 2022	Dec 31, 2023	Dec 31, 2024	Dec 31, 2025	Jun 30, 2026
Revenue	3,561.718	4,089.986	4,641.264	5,296.759	5,837.623
Revenue Growth	—	14.83%	13.48%	14.12%	10.21%
Net Income	848.952	1,041.144	1,055.484	1,108.888	1,377.994
Net Income Growth	—	22.64%	1.38%	5.06%	24.27%

Data as of Jun 30, 2026

Balance Sheet

Assets · Liabilities · Equity

Section Score

7.5/10

Cadence Design Systems shows a solid balance sheet with improving liquidity and steadily expanding equity. Total current assets rose from $1.7bn in FY2022 to $4.7bn in FY2025, while total current liabilities increased more moderately from $1.35bn to $1.64bn, leaving working capital strong at $3.0bn. Cash and short-term investments also increased sharply to $3.16bn in FY2025, providing a meaningful liquidity buffer. Total assets grew to $10.15bn, and shareholders’ equity climbed consistently to $5.47bn, supported by retained earnings of $7.1bn. The main caution is leverage: total debt jumped from $764m in FY2023 to $2.62bn in FY2025, keeping liabilities elevated. Overall, the balance sheet remains healthy, though debt growth merits monitoring.

Financials are in millions USD unless otherwise specified

Metric	FY 2022	FY 2023	FY 2024	FY 2025	Current
Period Ending	Dec 31, 2022	Dec 31, 2023	Dec 31, 2024	Dec 31, 2025	Jun 30, 2026
Total Current Assets	1,706.767	1,976.217	4,016.079	4,669.673	3,221.893
Total Assets	5,137.071	5,669.491	8,974.482	10,153.148	12,080.325
Total Current Liabilities	1,347.696	1,590.867	1,370.105	1,635.291	1,848.842
Total Liabilities	2,391.958	2,265.22	4,300.904	4,678.967	5,222.362

Data as of Jun 30, 2026

Cash Flow Statement

Operations · Investing · Financing

Section Score

8.5/10

Cadence shows strong cash generation, with operating cash flow rising from $1,241.9m in FY2022 to $1,728.8m in FY2025, and TTM at $1,854.9m, above the latest fiscal year. Free cash flow is also robust and improving, reaching $1,586.9m in FY2025 and $1,671.7m TTM after capital expenditures of about $141.9m to $183.1m, which looks disciplined for a software business. Cash flow quality is solid overall, though working capital was a drag in some years, including FY2023 and FY2024. Capital allocation is shareholder-focused, with consistent buybacks above $787m annually, but no dividends and no recent debt activity. Overall, cash generation is strong and sustainable.

Financials are in millions USD unless otherwise specified

Metric	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	TTM
Period Ending	Dec 31, 2021	Dec 31, 2022	Dec 31, 2023	Dec 31, 2024	Dec 31, 2025	Jun 30, 2026
Operating Cash Flow	—	1,241.894	1,349.176	1,260.551	1,728.781	1,854.868
Operating Cash Flow Growth	—	—	8.64%	-6.57%	37.14%	7.29%
Free Cash Flow	—	1,117.679	1,246.673	1,118.009	1,586.91	1,671.72
Free Cash Flow Growth	—	—	11.54%	-10.32%	41.94%	5.34%

Data as of Jun 30, 2026

Key Ratios

Liquidity · Leverage · Efficiency · Returns

Section Score

8/10

Cadence Design Systems shows very strong liquidity, with current, quick, and cash ratios all extremely high and still well above short-term needs, though they eased slightly from the FY2024 peak. Leverage remains manageable: debt-to-equity and long-term debt-to-equity rose in FY2024 but improved again in TTM, suggesting no persistent balance-sheet strain. Efficiency is less compelling, as asset turnover declined from the low 0.7x range to about 0.5x, indicating slower asset productivity. Profitability remains solid but has softened: gross margins are still excellent, while operating margin, net margin, ROE, and ROA all trended down from FY2022–FY2023 highs. Overall, the business remains financially strong, but returns and operating efficiency have weakened somewhat.

Ratios are dimensionless unless otherwise noted

Metric	FY 2022	FY 2023	FY 2024	FY 2025	Current
Period Ending	Dec 31, 2022	Dec 31, 2023	Dec 31, 2024	Dec 31, 2025	—
Current Ratio	126.643	124.223	293.122	285.556	285.556
Quick Ratio	117.145	112.804	274.312	266.994	266.994
Profit Margin	23.84%	25.46%	22.74%	20.94%	20.94%
After Tax ROE	30.93%	30.58%	22.58%	20.26%	20.26%
Return on Assets	16.53%	18.36%	11.76%	10.92%	11.41%
Debt to Equity	0.32	0.22	0.55	0.48	0.39
P/E Ratio	56.36	77.6	79.07	80.56	64.58
Forward P/E	34.13	46.08	43.67	39.37	34.06

Data as of Dec 31, 2025

Growth

Revenue · EPS · Valuation · Estimates

Section Score

8.5/10

Cadence Design Systems shows a steady compounding profile that strengthens in the forward estimates. Revenue rose from 3.56B USD to 5.30B USD across the historical period, then is projected to step up to 6.32B USD and 7.16B USD, indicating a clear reacceleration rather than a slowdown. Revenue growth remains consistently healthy, with a peak forecast pace that supports continued expansion. EPS growth has been more uneven historically, moving from strong expansion to a near-flat year before improving again; the forward path points to sharper earnings acceleration, suggesting margin leverage. Analyst sentiment is very constructive: a Strong Buy consensus, a 300 to 470 USD target range, and 26 analysts indicate solid conviction. The recommendation mix has stayed broadly stable, with no deterioration in the monthly split.

Analyst Price Targets

Low$300-7.64%

Median$402.5+23.91%

Average$403.67+24.28%

High$470+44.70%

Strong BuyConsensus rating based on analyst coverage

26 analysts

Recommendation Trends

Rating	May '26	Jun '26	Jul '26	Aug '26
Strong Buy	5	5	5	5
Buy	17	16	17	17
Hold	3	3	3	3
Sell	0	0	0	0
Strong Sell	0	0	0	0
Total	25	24	25	25

Forecast · Analyst Estimates

Revenue This Year6.32B

+19.28%from 5.30B

FY 2026

Revenue Next Year7.16B

+13.34%from 6.32B

FY 2027

EPS This Year· non-GAAP adj.4.80

+18.25%

FY 2026

EPS Next Year· non-GAAP adj.9.54

+17.11%

FY 2027

Historical · Reported Actuals

Metric	FY 2022	FY 2023	FY 2024	FY 2025
Revenue	3.56B	4.09B	4.64B	5.30B
Revenue Growth	—	+14.83%	+13.48%	+14.12%
EPS (GAAP diluted)	3.09	3.82	3.85	4.06
EPS Growth	—	+23.62%	+0.79%	+5.45%

Revenue in USD · EPS per share · Price targets in USD

Data as of Dec 31, 2025 · Forecast EPS is analyst non-GAAP adjusted; historical EPS is GAAP diluted — not directly comparable.

Fair Value Estimation

DCF · -51.5% Margin of Safety · Overvalued

AI Fair Value Estimate (DCF)

$157.38vs$324.82

Margin of Safety-51.5%

Overvalued — Priced above estimated fair value

A discounted cash flow framework fits Cadence because the business is highly cash-generative and its economics can be projected with reasonable confidence over a multi-year design-cycle ramp. The modeled cash-flow path suggests steady revenue expansion with disciplined capex, while the free cash flow profile points to improving operating leverage, a stable margin trajectory, and a gradual fade from growth-driven expansion toward a mature terminal-state profile.

AI Valuation Verdict

A discounted cash flow lens is appropriate here because Cadence combines durable recurring demand, strong cash conversion, and a visible multi-year operating ramp. The valuation assumes an 8% discount rate, 4% terminal growth, 8.97% revenue CAGR over seven years, and an average EBITDA margin of 32.98%, with capex held to 2.8% of revenue. Those inputs support solid cash generation, but the result remains highly sensitive to margin durability, the cost of capital, and the terminal growth assumption. On that basis, fair value comes to $157.38 per share versus a current price of $324.82, implying a -51.55% margin of safety and an overvalued verdict. A bull case would require stronger margin expansion and lower discount rates; a bear case would follow if growth fades faster or cash conversion weakens.

DCF Assumptions

WACC

8.0%

Weighted avg cost of capital

Revenue Growth (7Y)

9.0%

CAGR assumption

EBITDA Margin

33.0%

Steady-state projection

CapEx / Revenue

2.8%

Capital investment

Terminal Growth

4.0%

Long-run growth rate

Projection Period

7 yrs

Explicit forecast horizon

Projected Cash Flows

Values in millions USD

Year	Revenue	EBITDA	FCF	Discounted FCF
Yr 1	5,929	1,856	1,378	1,276
Yr 2	6,395	2,044	1,369	1,174
Yr 3	7,032	2,295	1,553	1,233
Yr 4	7,558	2,512	1,799	1,322
Yr 5	8,331	2,816	1,924	1,309
Yr 6	9,073	3,076	2,129	1,342
Yr 7	9,925	3,375	2,339	1,365
Terminal Value (PV)				35,484

Key Valuation Ratios

Current vs 5-year average

PE Ratio

64.58x

4Y avg 73.40x

-12.0% vs avg

Forward PE

34.06x

4Y avg 40.81x

-16.5% vs avg

P/FCF Ratio

53.66x

No history available

PS Ratio

15.32x

4Y avg 16.79x

-8.7% vs avg

A multiple below its own multi-year average can indicate the stock is cheaper than its recent history — context, not a standalone signal.

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Last Updated

Aug 17, 2026

Short Term

Medium Term

Long Term

Price Outlook

$324.82Price at Analysis

The most probable near-term move is a contested rebound toward the $326.55-$329.24 resistance zone, with $320.89 and $319.14 as the key downside supports if momentum fades. A decisive break above $333.35 would improve the setup, but absent that, the path of least resistance still points to range-bound weakness and a retest of the lower weekly/monthly pivots.

Technical Overview

CDNS presents a mixed but still cautious technical profile. The sharp one-day move higher does not yet negate the fact that price remains below the 20-day, 50-day, and 200-day moving averages, with RSI still in a weak zone and MACD below signal. That leaves the short- and medium-term setups biased bearish, even though the recent Golden Cross provides an improving longer-horizon backdrop. The most important levels to watch are the $320.89-$323.72 support cluster and the $326.55-$333.35 resistance band, because a sustained move through that range would signal whether the rebound can evolve into trend repair. Until then, the chart remains technically defensive.

Short Term

1 to 4 weeks

Bearish

CDNS is still trading below its 20-day MA and sits near the lower Bollinger Band, which keeps the near-term setup fragile despite today’s sharp rebound. RSI at 37.9 is only approaching oversold, while MACD remains bearish and volume is merely neutral, suggesting any bounce may face immediate overhead pressure unless price can reclaim the nearby pivot cluster.

Key Indicators

Price vs 20-day MA-2.75% below

Price vs 50-day MA-10.09% below

RSI (14-day)37.9

RSI InterpretationApproaching oversold

MACD TrendBearish (below signal)

Bollinger PositionNear lower band

Volume TrendNeutral

Support

$320.89$319.14$316.31

Resistance

$326.55$328.30$331.13

The closest short-term levels are the daily pivot at $323.72 and immediate resistance at $326.55, with support first at $320.89. In the 1–4 week window, price is most likely to test the $320.89-$326.55 band again, with $319.14 and $328.30 as the next key inflection points if momentum expands.

Medium Term

1 to 6 months

Bearish

The intermediate trend remains weak with price below both the 50-day and 200-day MAs, and the broader trend direction is still down. A recent Golden Cross offers some structural support, but the stock’s 52-day distance below the 50-day and the negative MACD bias point to a recovery phase rather than a confirmed uptrend.

Key Indicators

Price vs 50-day MA-10.09% below

Price vs 200-day MA-0.85% below

52-Week Range PositionMiddle third (40%)

Trend DirectionDowntrend

MA Cross SignalGolden Cross territory

Relative Volume1.06x avg

Support

$322.58$313.48

Resistance

$329.24$330.91$333.35

Weekly pivots place support at $322.58 and then $313.48, while resistance sits at $329.24, $330.91, and $333.35. These levels align closely with the 20-day/200-day area, so a 1–6 month retest of both the $322-$333 zone and the $313 area remains plausible if the current downtrend persists.

Long Term

6 months and beyond

Bearish

Longer term, CDNS is still below its 200-day MA and remains in the middle third of its 52-week range, well under the recent high. The Golden Cross is constructive, but the combination of a downtrend label and elevated volatility keeps the broader technical backdrop biased lower until the stock can rebuild above major monthly resistance.

Key Indicators

Price vs 200-day MA-0.85% below

52-Week High$416.69

52-Week Low$262.75

Distance from 52w High-22.0%

BB Bandwidth7.8%

MA CrossoverRecent Golden Cross (52 days ago)

Support

$323.27$309.73$306.53

Resistance

$377.46$380.66$394.20

Monthly structure shows support at $323.27, $309.73, and $306.53, with much higher resistance only at $377.46, $380.66, and $394.20. Over 6+ months, the market is still more likely to revisit the lower monthly support band than to challenge the 52-week high at $416.69 unless the stock reclaims the higher pivot zone first.

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Frequently asked questions about Cadence Design Systems Inc

Does Cadence Design Systems Inc (CDNS) have an economic moat?: MoatScan AI rates Cadence Design Systems Inc (CDNS) 68/100 for moat strength, assessed across five sources of competitive advantage: network effects, switching costs, intangible assets, cost advantages and efficient scale. Cadence Design Systems has one of the strongest franchises in electronic design automation, anchored by mission-critical tools that sit directly in the semiconductor tapeout path.Sign in free to see the Moat Type verdict and the pillar-by-pillar reasoning.
What is Cadence Design Systems Inc's moat score?: Cadence Design Systems Inc (CDNS) has a moat score of 68/100. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. A higher score means the competitive advantages MoatScan AI identifies are wider and more durable.Sign in free to see each pillar rating, the Moat Type verdict and the moat trend.
Is CDNS stock overvalued or undervalued?: MoatScan AI answers this by estimating CDNS's intrinsic value with a discounted cash flow (DCF) model, then comparing that estimate to the current market price. A share price meaningfully below the estimate is flagged undervalued; meaningfully above it, overvalued. The estimate updates with each new financial analysis.Sign in free to see the fair value estimate, the implied upside or downside, and the verdict.
What is Cadence Design Systems Inc's fair value estimate?: MoatScan AI derives Cadence Design Systems Inc's (CDNS) fair value per share from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. The Financial Analysis tab shows the estimate alongside every assumption behind it.Sign in free to see the estimate and the full assumptions behind it.

Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.

CDNS$324.82

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Frequently asked questions about Cadence Design Systems Inc

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