Cadence Design Fair Value
CD
The fair market value of CDNS stock is 234.23 USD. Relative to the market price of 305.145 USD Cadence Design is overvalued by 23.2%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Cadence Design Valuation
Current CDNS share ticker price is 305.145 USD.
The fair value level of 234.23 USD can be considered as an effective entry point for long-term investors to start investing in CDNS stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 23% higher its fair value
Current price is 67% higher its minimum value
Current price is 9% higher its maximum value
Market price:
CDNS stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Cadence Design Systems Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
73.04
2
Median P/E over 5 years
61.53
3
Minimum P/E over 5 years
26.32
4
Earning per share (last 12 months)
3.81 USD
Maximum value
1
x
4
=
278.05 USD
Fair value
2
x
4
=
234.23 USD
Minimum value
3
x
4
=
100.18 USD
Cadence Design Systems Inc price metrics
34.8
Annual return (geometric mean)
36.91
Risk (standard deviation) of returns
β
1.04
Beta (volatility compared to market)