Cadence Design Systems Inc. (CDNS) intrinsic value & 10-year financials
Cadence Design Systems Inc. (CDNS) has a Graham intrinsic value of $134.86 per share. At $319.51 on Oct 17, 2026, the stock trades 137% above that value. Over the last 10 fiscal years revenue grew 14.4% a year to $5.3B, with an average return on invested capital of 43.7%.
- Graham intrinsic value
- $134.86
- Share price (Oct 17, 2026)
- $319.51
- Price vs Graham value
- 137% above
- Market cap
- $87.3B
- Revenue (FY2025)
- $5.3B
- Revenue growth (10-yr CAGR)
- 14.4%
- ROIC (10-yr avg)
- 43.7%
- Free cash flow (FY2025)
- $1.6B
CDNS 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $5.3B | $1.1B | $4.06 | $1.6B | 28.2% | 45.8% |
| FY2024 | $4.6B | $1.1B | $3.85 | $1.1B | 29.1% | 43.9% |
| FY2023 | $4.1B | $1.0B | $3.82 | $1.2B | 30.6% | 45.0% |
| FY2022 | $3.6B | $849.0M | $3.09 | $1.1B | 30.1% | 47.4% |
| FY2021 | $2.7B | $590.6M | $2.11 | $810.1M | 24.1% | 38.1% |
| FY2019 | $2.3B | $989.0M | $3.53 | $655.0M | 21.1% | 44.0% |
| FY2018 | $2.1B | $345.8M | $1.23 | $543.2M | 18.5% | 68.9% |
| FY2017 | $1.9B | $204.1M | $0.73 | $412.8M | 16.7% | 69.7% |
| FY2016 | $1.8B | $203.1M | $0.70 | $391.2M | 13.5% | 20.2% |
| FY2015 | $1.6B | $158.9M | $0.52 | $276.9M | 13.1% | 13.6% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Cadence Design Systems is a consistent compounder, expanding top-line revenue at 14.4% annually over the past decade.
Cadence Design Systems has earned high returns on invested capital, averaging 50.4% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, Cadence Design Systems shows that management has aggressively returned capital to shareholders by retiring 10.9% of outstanding shares.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Cadence Design Systems is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $134.86 per share.