Cadence Design Fair Value
CD
The fair market value of CDS.SW stock is 198.21 CHF. Relative to the market price of 0 CHF Cadence Design Systems is overvalued by 16.5%
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
The fair value level of 198.21 CHF can be considered as an effective entry point for long-term investors to start investing in CDS.SW 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.
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Current market price
Market price:
CDS.SW stock is overvalued
It means the current price may concern as a Risky 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
60.75
3
Minimum P/E over 5 years
26.32
4
Earning per share (last 12 months)
3.87 USD
Maximum value
1
x
4
=
238.33 CHF
Fair value
2
x
4
=
198.21 CHF
Minimum value
3
x
4
=
85.87 CHF
Cadence Design Systems Inc price metrics
32.6
Annual return (geometric mean)
36.2
Risk (standard deviation) of returns
β
1.9
Beta (volatility compared to market)