Cadence Design Systems (CDNS) is a application software company in the Information Technology sector. Listed on the NASDAQ, Cadence Design Systems is a component of the S&P 500 index. As of 2026-06-10, the stock is trading at $385.13.
Key Metrics & Risk
Based on 5-year historical data from Yahoo Finance (daily returns, annualized using 252 trading days).
| Metric | Value |
|---|---|
| Latest Price | $385.13 |
| Latest Date | 2026-06-10 |
| Expected Return (Annualized) | 28.47% |
| Risk / Std Dev (Annualized) | 36.20% |
| Sharpe Ratio (rf=4.5%) | 0.66 |
S&P 500 Context
- Sector: Information Technology
- Sub-Industry: Application Software
- Exchange: NASDAQ
- Index: S&P 500 Component
Risk/Return Profile
The stock shows an annualized expected return of 28.47% with an annualized volatility of 36.20%. The Sharpe ratio of 0.66 (assuming 4.5% risk-free rate) indicates moderate risk-adjusted returns relative to the risk-free rate.
Modern Portfolio Theory Positioning
This stock is plotted on the S&P 500 Modern Portfolio Theory chart which visualizes the risk/return trade-off across all S&P 500 components. The chart uses Sharpe ratio as the color dimension, allowing quick identification of stocks with superior risk-adjusted performance.
Fundamentals
| Metric | Value |
|---|---|
| Market Cap | 106.23B |
| Enterprise Value | 107.76B |
| Trailing P/E | 90.19 |
| Forward P/E | 41.04 |
| Price to Book | 16.19 |
| Price to Sales | 19.21 |
| EV/Revenue | 19.49 |
| EV/EBITDA | 53.5 |
| Profitability | | | Profit Margin | 21.18% | | Operating Margin | 29.7% | | ROE | 20.66% | | ROA | 10.39% |
| Growth | | | Revenue Growth | 18.7% | | Earnings Growth | 23.0% |
| Financial Health | | | Total Revenue | 5.53B | | Total Debt | 3.08B | | Total Cash | 1.55B | | Free Cash Flow | 1.5B | | Operating Cash Flow | 1.6B |
| Price & Technical | | | 52W High | $416.69$ | | 52W Low | $262.75$ | | 50-Day Avg | $338.57$ | | 200-Day Avg | $324.92$ | | Beta | 1.15 | | Shares Outstanding | 0.28B | | Float Shares | 0.27B | | Insider Holdings | 0.29% | | Institutional Holdings | 91.11% | | Short Ratio | 2.24 | | Short % of Float | 1.78% |
| Analyst Targets | | | Target High | $440.0$ | | Target Low | $275.0$ | | Target Mean | $385.37$ | | Target Median | $387.5$ | | # of Analysts | 26 | | Recommendation | strong_buy |
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a qualified financial advisor before making investment decisions.