Cadence Design Systems Stock Market Value
| CDNS Stock | USD 304.41 2.94 0.98% |
| Symbol | Cadence |
Cadence Design Systems Price To Book Ratio
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cadence Design. If investors know Cadence will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cadence Design listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Earnings Share 3.8 | Revenue Per Share 16.098 | Quarterly Revenue Growth 0.188 | Return On Assets 0.1087 |
The market value of Cadence Design Systems is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Design's value that differs from its market value or its book value, called intrinsic value, which is Cadence Design's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cadence Design's market value can be influenced by many factors that don't directly affect Cadence Design's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cadence Design's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Design is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Design's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Cadence Design 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cadence Design's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cadence Design.
| 11/24/2024 |
| 12/24/2024 |
If you would invest 0.00 in Cadence Design on November 24, 2024 and sell it all today you would earn a total of 0.00 from holding Cadence Design Systems or generate 0.0% return on investment in Cadence Design over 30 days. Cadence Design is related to or competes with BASE, Red Violet, Adcore, RenoWorks Software, and PAR Technology. Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit design blocks worldw... More
Cadence Design Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cadence Design's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cadence Design Systems upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.33 | |||
| Information Ratio | 0.0583 | |||
| Maximum Drawdown | 18.93 | |||
| Value At Risk | (4.40) | |||
| Potential Upside | 2.92 |
Cadence Design Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cadence Design's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cadence Design's standard deviation. In reality, there are many statistical measures that can use Cadence Design historical prices to predict the future Cadence Design's volatility.| Risk Adjusted Performance | 0.0676 | |||
| Jensen Alpha | 0.1818 | |||
| Total Risk Alpha | 0.0721 | |||
| Sortino Ratio | 0.0629 | |||
| Treynor Ratio | (25.94) |
Cadence Design Systems Backtested Returns
Cadence Design appears to be very steady, given 3 months investment horizon. Cadence Design Systems secures Sharpe Ratio (or Efficiency) of 0.0898, which signifies that the company had a 0.0898% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Cadence Design Systems, which you can use to evaluate the volatility of the firm. Please makes use of Cadence Design's risk adjusted performance of 0.0676, and Mean Deviation of 1.68 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Cadence Design holds a performance score of 7. The firm shows a Beta (market volatility) of -0.007, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Cadence Design are expected to decrease at a much lower rate. During the bear market, Cadence Design is likely to outperform the market. Please check Cadence Design's standard deviation, expected short fall, period momentum indicator, as well as the relationship between the maximum drawdown and rate of daily change , to make a quick decision on whether Cadence Design's price patterns will revert.
Auto-correlation | 0.54 |
Modest predictability
Cadence Design Systems has modest predictability. Overlapping area represents the amount of predictability between Cadence Design time series from 24th of November 2024 to 9th of December 2024 and 9th of December 2024 to 24th of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cadence Design Systems price movement. The serial correlation of 0.54 indicates that about 54.0% of current Cadence Design price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.54 | |
| Spearman Rank Test | 0.12 | |
| Residual Average | 0.0 | |
| Price Variance | 20.12 |
Cadence Design Systems lagged returns against current returns
Autocorrelation, which is Cadence Design stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Cadence Design's stock expected returns. We can calculate the autocorrelation of Cadence Design returns to help us make a trade decision. For example, suppose you find that Cadence Design has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Cadence Design regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Cadence Design stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cadence Design stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cadence Design stock over time.
Current vs Lagged Prices |
| Timeline |
Cadence Design Lagged Returns
When evaluating Cadence Design's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cadence Design stock have on its future price. Cadence Design autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Cadence Design autocorrelation shows the relationship between Cadence Design stock current value and its past values and can show if there is a momentum factor associated with investing in Cadence Design Systems.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Cadence Stock Analysis
When running Cadence Design's price analysis, check to measure Cadence Design's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.