Charles Schwab (FRA:SWG) Moat Score: 7/10 (As of Jun. 27, 2026)


FRA:SWG Charles Schwab Corp FRA:SWG
73 GF Score
Price €77.28
GF Value €87.66
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Charles Schwab Moat Score?

Charles Schwab FRA:SWG -3.76% 73 Moat Score is 7 as of Jun. 27, 2026. GuruFocus rates FRA:SWG with a GF Score™ of 73/100 and a GF Value™ of €87.66 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 838 Capital Markets companies, Charles Schwab ranks better than 98.69% on this metric.

Charles Schwab has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Charles Schwab has Wide Moat: Charles Schwab Corp has a wide moat due to its strong brand, extensive distribution network, and significant customer switching costs in financial services. It benefits from economies of scale and regulatory barriers, providing durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Charles Schwab might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Charles Schwab  (FRA:SWG) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Charles Schwab Moat Score Related Terms

FRA:SWG vs HOOD, IBKR, CRCL: Moat Score Comparison

For the Capital Markets subindustry, Charles Schwab's Moat Score, along with its competitors' market caps and Moat Score 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.

Charles Schwab Moat Score vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Charles Schwab's Moat Score distribution charts can be found below:

* The bar in red indicates where Charles Schwab's Moat Score falls into.


FRA:SWG
73GF Score
Charles Schwab Corp FRA:SWG
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Charles Schwab (FRA:SWG) has a Moat Score of 7 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Charles Schwab ranks #11 out of 838 companies in the Capital Markets industry, placing it in the top 1.3%.
Is Charles Schwab's Moat Score too high?
Charles Schwab's current Moat Score is 7. Based on the distribution chart, Charles Schwab ranks #11 out of 838 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Charles Schwab has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's Moat Score compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #11 out of 838 companies for Moat Score. This places Charles Schwab in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Capital Markets company?
A good Moat Score depends on the Capital Markets industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Charles Schwab's current Moat Score is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Based on GuruFocus' analysis, Charles Schwab (FRA:SWG) is currently considered Modestly Undervalued. The stock's GF Value™ is €87.66, compared to a current price of €77.28 — trading 11.8% below its estimated fair value. The current Moat Score is 7. Charles Schwab's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Charles Schwab (FRA:SWG), the current Moat Score is 7 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Charles Schwab (FRA:SWG) Overvalued in 2026?

Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued. The current stock price of €77.28 is trading 11.8% below its estimated GF Value™ of €87.66. GuruFocus considers Charles Schwab to be Modestly Undervalued.

Key valuation signals for FRA:SWG:

  • Moat Score: 7
  • GF Value™: €87.66 vs. price of €77.28 (11.8% below fair value)
  • GF Score™: 73/100 with 2 warning signs

No single metric tells the full story. See the FRA:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Charles Schwab Business Description

Address 3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€77.28
Price
€87.66
GF Value