Based on Clarity's multi-model valuation engine, CADENCE DESIGN SYSTEMS INC (CDNS) has an estimated fair value of $120.51 per share, compared to its current market price of $283.90. The stock is currently trading 57.6% above Clarity's fair value estimate, resulting in a verdict of SIGNIFICANTLY OVERVALUED.

This valuation blends 5 independent models — including Discounted Cash Flow (DCF), Residual Income, Comparable Companies, and 2 more. The primary weight is given to the Discounted Cash Flow (DCF) model, with Bayesian triangulation used to reconcile the estimates into a single blended fair value. The 5 models show low agreement with a 47% spread between the highest and lowest estimates.

Monte Carlo simulation across 5,000 scenarios estimates a 3.2% probability that the stock is trading below its intrinsic value, with a median simulated value of $102.03.

Clarity's 1-year price target is $143.67, reflecting expected earnings growth and margin trajectory.

CADENCE DESIGN SYSTEMS INC is classified under the SaaS / Tech sector, and this valuation is based on 10-K · Filed 2026-02-19 filings sourced directly from SEC EDGAR. All models use trailing twelve month financials where available, with sector-appropriate growth and discount rate assumptions.