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Switch (Switch) Intrinsic Value: Projected FCF : $-5.84 (As of May. 12, 2024)


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What is Switch Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-12), Switch's Intrinsic Value: Projected FCF is $-5.84. The stock price of Switch is $34.25. Therefore, Switch's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

The historical rank and industry rank for Switch's Intrinsic Value: Projected FCF or its related term are showing as below:

SWCH's Price-to-Projected-FCF is not ranked *
in the Software industry.
Industry Median: 1.62
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Switch Intrinsic Value: Projected FCF Historical Data

The historical data trend for Switch's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Switch Intrinsic Value: Projected FCF Chart

Switch Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - - -

Switch Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -6.79 -3.16 -5.84

Competitive Comparison of Switch's Intrinsic Value: Projected FCF

For the Information Technology Services subindustry, Switch's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Switch's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Switch's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Switch's Price-to-Projected-FCF falls into.



Switch Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Switch's Free Cash Flow(6 year avg) = $-159.65.

Switch's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Sep22)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-159.65152+770.062*0.8)/154.778
=-5.84

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Switch  (NYSE:SWCH) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Switch's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=34.25/-5.8399062090879
=

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Switch Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Switch's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Switch (Switch) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Switch Inc (NYSE:SWCH) » Definitions » Intrinsic Value: Projected FCF
Traded in Other Exchanges
N/A
Address
7135 South Decatur Boulevard, Las Vegas, NV, USA, 89118
Switch Inc is a US-based technology infrastructure company. It is engaged in designing, constructing, and operating hyper-scale data centers. The company has developed patented technologies that have redefined data center space and cooling, allowing customers to deploy high-density and scalable IT architectures to support demanding and critical workloads. Switch owns and operates primary campus locations called Primes. These Primes are The Core Campus in Vegas, Nevada; The Citadel Campus near Reno, Nevada; The Pyramid Campus in Grand Rapids, Michigan; and The Keep Campus in Atlanta, Georgia. It generates the majority of its revenue through colocation, which includes the licensing and leasing of cabinet space & power.
Executives
Thomas A Thomas director 5241 SPRING MOUNTAIN ROAD, LAS VEGAS NV 89150
Teresa A. Borden officer: Chief Construction Officer C/O SWITCH, INC., 7135 SOUTH DECATUR BOULEVARD, LAS VEGAS NV 89118
Rob Roy director, 10 percent owner, officer: Chief Executive Officer 7135 S. DECATUR BLVD, LAS VEGAS NV 89118
Erin Thomas Morton 10 percent owner, officer: President and General Counsel 7135 S. DECATUR BLVD, LAS VEGAS NV 89118
Stella Roy 10 percent owner 410 S. RAMPART BLVD., SUITE 350, LAS VEGAS NV 89145
Jonathan H King officer: Chief Revenue Officer C/O SWITCH, INC., 7135 SOUTH DECATUR BOULEVARD, LAS VEGAS NV 89118
Jason Genrich director C/O SWITCH, INC., 7135 SOUTH DECATUR BOULEVARD, LAS VEGAS NV 89118
Melissa Young officer: Chief Information Officer C/O SWITCH, INC., 7135 SOUTH DECATUR BOULEVARD, LAS VEGAS NV 89118
First St Switch Llc 10 percent owner 1370 JET STREAM DRIVE, SUITE 100, HENDERSON NV 89052
Jeffrey Alan Troesh 10 percent owner 1370 JET STREAM DRIVE, SUITE 100, HENDERSON NV 89052
Eastern Capital Group Llc 10 percent owner 1370 JET STREAM DRIVE, SUITE 100, HENDERSON NV 89052
Family Foundation Troesh 10 percent owner 1370 JET STREAM DRIVE, SUITE 100, HENDERSON NV 89052
Angela N Archon director 294 ROUTE 100, BUILDING 1, SOMERS NY 10589
Liane J Pelletier director 10700 NE 4TH STREET # 4004, BELLEVUE WA 98004
Dt Grat Lm, Llc 10 percent owner 1370 JET STREAM DRIVE, SUITE 100, HENDERSON NV 89052

Switch (Switch) Headlines

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