In the current metal forming product development paradigm, product cost, time-to-market and product quality are three overriding issues, which determine the competitiveness of the developed products. In the up front design process, the first 20% of design activities commits to about 80% of product development cost and product quality issues. How to conduct ‘right the first time’ design is critical to ensure low development cost, high product quality and short time-to-market. To address these issues, state of the art technologies are needed. Traditionally, computer-aided design (CAD) and computer-aided manufacturing (CAM) technologies provide solutions for representation of design intent and realization of design solution physically. However, it is difficult to address some critical issues... in the design of forming process, tooling structure, material selection and properties configuration, and finally the product quality control and assurance. Computer-aided engineering (CAE) technology fills this gap as it helps practitioners generate, verify, validate and optimize design solutions before they are practically implemented and physically realized. In this paper, a methodology for evaluation of metal forming system design and performance via CAE simulation is developed. The concept of metal forming system and its design is first articulated and how the CAE technology helps design and design solution evaluation is then presented. To assess and evaluate the performance of metal forming systems, quantitative design evaluation criteria are developed. Through industrial case study, how the developed methodology helps metal forming system design and evaluation is illustrated and its efficiency and validity is finally verified.