Discounted Cash Flow

Cadence Design Systems Inc.

CDNS · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.8b $203.1m $391.2m 11.2% $0.71
2017 $1.9b (7.0%) $204.1m (0.5%) $412.8m (5.5%) 10.5% (-6.1%) $0.75 (5.6%)
2018 $2.1b (10.0%) $345.8m (69.4%) $543.2m (31.6%) 16.2% (54.0%) $1.26 (68.0%)
2019 $2.3b (9.3%) $989.0m (186.0%) $655.0m (20.6%) 42.3% (161.7%) $3.62 (187.3%)
2020 $2.7b (14.8%) $590.6m (-40.3%) $810.1m (23.7%) 22.0% (-48.0%) $2.16 (-40.3%)
2021 $2.7b (0.0%) $590.6m (0.0%) $810.1m (0.0%) 22.0% (0.0%) $2.16 (0.0%)
2022 $3.6b (32.8%) $849.0m (43.7%) $1.1b (38.1%) 23.8% (8.3%) $3.13 (44.9%)
2023 $4.1b (14.8%) $1.0b (22.6%) $1.2b (11.5%) 25.5% (6.8%) $3.86 (23.3%)
2024 $4.6b (13.5%) $1.1b (1.4%) $1.1b (-10.3%) 22.7% (-10.7%) $3.89 (0.8%)
2025 $5.3b (14.1%) $1.1b (5.1%) $1.6b (41.9%) 20.9% (-7.9%) $4.09 (5.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model