| 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 | $96B | |||||
| 2021 | - | - (-) | P/E Ratio | 81 | Total Asset | $10B | |||||
| 2022 | $1B | - (-) | Net Income | $1B | Total Debt | $2B | |||||
| 2023 | $1B | 11.5% (-2.9%) | EBITDA | $2B | Total Liab | $5B | |||||
| 2024 | $1B | -10.3% (-21.0%) | Opr Margin | 31.15 | Debt/Equity | 0.45 | |||||
| 2025 | $2B | 41.9% (24.4%) | PreTax Margin | 28.95 | BV/Share | 7 | |||||
| 5Y Average FCF | $1B | 14.2% (0.2%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 9.54% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (14.2%) | ||||||||||
| 2026 | $2B | MBG Intrinsic Value | $39 | ||||||||
| 2027 | $2B | ||||||||||
| 2028 | $2B | ||||||||||
| 2029 | $2B | ||||||||||
| 2030 | $2B | ||||||||||
| 2031 | $2B | ||||||||||
| Terminal Value | $35B | Net Worth/Share | $20 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $29B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $3B | $108 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $2B | WACC | 7.5% | 132 | 141 | 151 | 165 | 181 | |||
| Equity Value | $30B | 8.5% | 113 | 119 | 126 | 135 | 145 | ||||
| Shares Outstanding | 275,816,000 | 9.5% | 99 | 103 | 108 | 114 | 121 | ||||
| 10.5% | 88 | 91 | 95 | 99 | 104 | ||||||
| DCF Intrinsic Value | $108 | 11.5% | 79 | 81 | 84 | 88 | 91 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||