| Intrinsic Valuation of: CDNS | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 4 | Market Cap | $84B | |||||
| 2021 | - | - (-) | P/E Ratio | 79 | Total Asset | $9B | |||||
| 2022 | $1B | - (-) | Net Income | $1B | Total Debt | $2B | |||||
| 2023 | $1B | 8.1% (-9.3%) | EBITDA | $2B | Total Liab | $4B | |||||
| 2024 | $1B | 11.5% (-2.9%) | Opr Margin | 0.30 | Debt/Equity | 0.53 | |||||
| 2025 | $1B | -10.3% (-21.0%) | PreTax Margin | 27.98 | BV/Share | 6 | |||||
| 5Y Average FCF | $1B | 3.1% (-11.1%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (4.0%) | ||||||||||
| 2026 | $1B | MBG Intrinsic Value | $35 | ||||||||
| 2027 | $1B | ||||||||||
| 2028 | $1B | ||||||||||
| 2029 | $1B | ||||||||||
| 2030 | $1B | ||||||||||
| 2031 | $1B | ||||||||||
| Terminal Value | $29B | Net Worth/Share | $17 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $25B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $3B | $93 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $2B | WACC | 7.3% | 82 | 88 | 95 | 103 | 114 | |||
| Equity Value | $25B | 7.4% | 81 | 87 | 94 | 102 | 113 | ||||
| Shares Outstanding | 273,041,984 | 7.4% | 80 | 86 | 93 | 101 | 111 | ||||
| 7.9% | 74 | 79 | 84 | 91 | 99 | ||||||
| DCF Intrinsic Value | $93 | 8.4% | 69 | 72 | 77 | 82 | 89 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||