Spectrum analysis which is also known as spectral density estimation or frequency domain analysis is a process of decomposing a signal into smaller parts. A process that calculates any quantity (amplitude, power, intensity, or phase) over frequency is called spectrum analysis. By taking Fourier transform of a signal, frequency spectrum can be achieved. Power Spectral Density (PSD) gives an idea about how the power of the signal is distributed over frequency. Power spectral density can be calculated by different methods and one of the methods is modified periodogram method which is the windowed squared magnitude of fast fourier transform. Power Spectral density analysis plays an important role in different applications. So an efficient method is needed for the computation. Fast fourier transform can be implemented using CORDIC algorithm which uses shifters and adders for the computation. Replacing the normal FFT by CORDIC FFT in PSD computation will reduce the memory requirement, delay, power and the number of lookup tables.