2024-04-29 17:04:28 ET
Summary
- Cadence Design Systems operates in an attractive market, electronic design automation (EDA), with a competitive advantage over its main competitor, Synopsys.
- I have made a valuation in two scenarios: a base case where the current price is 30% more expensive and an optimistic scenario aligned with the current price.
- Even if Cadence has a solid business model, I recommend holding until the Price/Cash Flow lowers to x40.
Overview
Cadence Design Systems ( CDNS ) is a company I have known for five years. I am passionate about it, and I would invest in it at any time. In this article, I rationalize an investment thesis to separate my feelings from my reason, so I can make a good recommendation....
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For further details see:
Cadence Design Systems: Patiently Waiting For A Better Price