Who collects the number, and from what data
SimilarWeb is a private digital data analytics company, not a Google service and not an official source of website traffic. The number it shows for any given domain usually doesn't come from a direct connection to that site's analytics, with one specific exception: when the site's own owner has granted SimilarWeb access to its data. For everything else, the vast majority of domains looked up in the tool, including almost any competitor's site, the number is an estimate built from other sources.
According to SimilarWeb's own documentation, the company combines four types of source. The first is first-party analytics that millions of websites and apps voluntarily share because they've connected their own data directly: the only source that comes close to a real measurement. The second is a user panel: browser extensions and proprietary apps installed on millions of devices worldwide, which collect anonymized browsing paths from whoever installed them. The third is crawling the public web with a proprietary crawler that indexes pages on an ongoing basis. The fourth is data agreements with outside partners, including internet service providers, ad platforms, and measurement companies, which contribute already-aggregated behavioral data about sites and apps.
For a site with no direct connection, which is the normal situation when looking at a competitor, SimilarWeb doesn't measure its traffic: it models it from what shows up in its panel, what its data partners contribute, and what its crawler finds, then extrapolates a number from that. The larger that site's footprint in the panel and in partner data, the closer the model gets to a solid number. The smaller that footprint, the more the result depends on statistical extrapolation instead of direct observation.