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Price: 31.61 EUR -1.74% Market Closed

Market Cap: €7.7B

Switch Inc
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Switch Inc
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Company		Other Items	CAGR 3Y	CAGR 5Y	CAGR 10Y
S	Switch Inc F:821	Other Items -$5.9m	CAGR 3-Years N/A	CAGR 5-Years 5%	CAGR 10-Years N/A
	Twilio Inc NYSE:TWLO	Other Items $407.8m	CAGR 3-Years N/A	CAGR 5-Years N/A	CAGR 10-Years N/A
	Cloudflare Inc NYSE:NET	Other Items -$1.4B	CAGR 3-Years -48%	CAGR 5-Years -11%	CAGR 10-Years N/A
	Snowflake Inc. NYSE:SNOW	Other Items $222m	CAGR 3-Years N/A	CAGR 5-Years N/A	CAGR 10-Years N/A
	MongoDB Inc NASDAQ:MDB	Other Items $155.6m	CAGR 3-Years -15%	CAGR 5-Years N/A	CAGR 10-Years N/A
	Verisign Inc NASDAQ:VRSN	Other Items $7.7m	CAGR 3-Years -76%	CAGR 5-Years -44%	CAGR 10-Years N/A

Switch Inc
Glance View

Economic Moat

None

Market Cap

7.7B EUR

Industry

Technology

Switch Inc. emerged on the technology landscape as a formidable force, redefining how data centers operate. Founded with a vision to transform an industry traditionally dominated by bulkiness and inefficiency, the company set out to create some of the world’s most advanced and sustainable data centers. This endeavor was spearheaded by innovating hyperscale facilities, designed to store, manage, and protect data in a redundant, robust, and secure manner. By strategically building its data centers in locations with optimal climates and incorporating sustainable energy solutions, Switch Inc. capitalized on reducing operational costs and enhancing environmental sustainability. The business model of Switch Inc. is centered around offering colocation services to enterprises looking to outsource their data storage needs. By providing space, power, cooling, and security for servers, Switch leases out its facilities to companies who demand reliability and scalability. Revenue flows as these businesses pay Switch for the physical space and the infrastructure’s connectivity and security features. With clients ranging from cloud service providers to financial institutions, Switch Inc. not only ensures data is housed in state-of-the-art environments but also guarantees rapid, dependable access. This model, focused on leasing top-tier facilities rather than monetizing software or technology per se, is where Switch finds its competitive niche and financial success.

View Switch Inc Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Switch Inc
F:821

Switch Inc
Other Items

Switch Inc
Other Items Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Switch Inc
Glance View

See Also

What is Switch Inc's Other Items?

Other Items
-5.9m USD

What is Switch Inc's Other Items growth rate?

Other Items CAGR 5Y
5%

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Switch Inc F:821

Switch Inc Other Items

Switch Inc Other Items Peer Comparison

Competitors Analysis Latest Figures & CAGR of Competitors

Switch Inc Glance View

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What is Switch Inc's Other Items? Other Items -5.9m USD

What is Switch Inc's Other Items growth rate? Other Items CAGR 5Y 5%

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Tools

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Switch Inc
F:821

Switch Inc
Other Items

Switch Inc
Other Items Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Switch Inc
Glance View

What is Switch Inc's Other Items?

Other Items
-5.9m USD

What is Switch Inc's Other Items growth rate?

Other Items CAGR 5Y
5%