Fidelity Enhanced Small Cap ETF (FESM) Valuation

NYSE: FESMP/E, earnings yield and other ratios of the holdings combined.

FESM valuation today

Holdings combined · company data as of Oct 26, 2026
P/E (TTM)
186.1
trailing earnings
Forward P/E
13.3
analyst estimates
Price / sales
0.96
Price / book
2.28
EV / EBITDA
6.1
Earnings yield
0.54%
inverse of P/E
Dividend yield
1.08%
of the holdings
Return on equity
1.2%
combined
Net margin
0.5%
combined
Beta
1.13
weighted, vs S&P 500

FESM valuation vs other stock ETFs

P/E (TTM)Forward P/E
FESM valuation compared with other stock ETFs
ETFP/EFwd P/EP/SP/BDiv. yieldROENet marginLoss-makers
FESM186.113.30.962.281.08%1.2%0.5%26.3%
SPY25.919.93.675.471.08%21.1%14.2%1.9%
QQQ34.223.45.939.270.58%27.1%17.4%6.9%
DIA20.918.43.165.521.55%26.4%15.1%0.0%
VTI28.219.43.315.001.07%17.7%11.8%4.6%
IWMn/m13.91.252.031.38%−1.7%−1.0%28.1%

Same method for every fund. n/m = not meaningful (combined trailing earnings below zero or close to it). Loss-makers = weight of holdings with negative trailing earnings.

FESM valuation by sector

P/E (TTM)Forward P/E
FESM valuation by sector
SectorWeightP/EFwd P/EP/SP/BDiv. yieldROE
Healthcare20.8%n/m17.02.123.910.12%−25.8%
Technology18.3%62.914.81.543.660.16%5.8%
Financial Services17.7%13.710.70.951.452.05%10.6%
Industrials13.6%72.613.90.812.450.97%3.4%
Consumer Cyclical8.9%n/m11.70.602.370.87%−4.8%
Energy4.6%55.111.80.381.542.02%2.8%
Real Estate4.1%29.417.51.101.644.44%5.6%
Basic Materials3.7%n/m12.81.042.291.08%−5.9%
Communication Services2.7%73.812.11.072.110.35%2.9%
Utilities1.8%18.914.91.991.373.95%7.3%
Consumer Defensive1.2%n/m10.70.181.140.82%−7.2%
Services0.4%14.215.31.602.992.71%21.0%
Financials0.1%16.2—4.221.271.94%7.8%

FESM earnings yield vs bond yields

FESM earnings yield (forward)
7.52%
FESM earnings yield (trailing)
0.54%
FESM dividend yield
1.08%
Bond market yield (AGG)
5.33%
T-bill yield (BIL)
3.91%

Earnings yield = earnings ÷ price (1 ÷ P/E). The gap to bond yields is a rough gauge of the extra return stocks are priced to deliver.

How FESM weight splits by P/E

Share of the covered weight in companies with a trailing P/E in each range.

FESM largest holdings: valuation

FESM largest holdings valuation
SymbolCompanyWeightP/EFwd P/EP/SDiv. yieldShare of earnings
OSCROscar Health, Inc.0.78%24.7588.20.6—6.45%
GKOSGlaukos Corporation0.76%——15.9—−3.06%
CMCCommercial Metals Company0.74%11.110.40.81.23%13.50%
ANFAbercrombie & Fitch Co.0.73%13.210.01.2—11.28%
ENSEnerSys0.73%18.114.21.60.68%8.20%
FLRFluor Corporation0.71%—16.50.4—−36.81%
OUTOutfront Media Inc.0.71%21.919.02.84.05%6.62%
HQYHealthEquity, Inc.0.71%33.219.75.6—4.34%
OPCHOption Care Health, Inc.0.71%23.611.20.8—6.09%
IBPInstalled Building Products, Inc.0.66%20.017.81.70.84%6.74%
GFFGriffon Corporation0.66%20.010.21.70.95%6.68%
PLXSPlexus Corp.0.65%34.024.21.3—3.91%
KARKAR Auction Services Inc0.65%—————
BCPCBalchem Corporation0.63%33.629.35.00.56%3.82%
PECOPhillips Edison & Company, Inc.0.61%33.565.87.23.61%3.71%
ACIWACI Worldwide, Inc.0.61%24.112.62.9—5.15%
KLICKulicke and Soffa Industries, Inc.0.60%36.113.34.31.04%3.36%
SONOSonos, Inc.0.59%38.537.31.4—3.13%
PAYOPayoneer Global Inc.0.59%50.9—2.2—2.36%
HOMBHome Bancshares, Inc. (Conway, AR)0.57%12.011.05.22.95%9.62%
WSFSWSFS Financial Corporation0.56%12.811.13.61.05%8.94%
BTSGBrightSpring Health Services, Inc.0.56%53.922.20.8—2.11%
WSBCWesBanco, Inc.0.55%10.79.83.44.08%10.42%
DKDelek US Holdings, Inc.0.54%20.820.30.41.33%5.33%
WKWorkiva Inc.0.54%89.7—4.2—1.23%

Share of earnings = the holding's part of the fund's combined trailing profit. Green: earns more than its weight; orange: less. Symbol links go to each company's key metrics.

About FESM valuation

Adding up its 678 holdings with company data, FESM trades at 186.1 times trailing earnings and 13.3 times analysts' forward estimates, with a price-to-book ratio of 2.28 and a dividend yield of 1.08%. Its earnings yield of 0.54% is 4.79 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 7.3% of the fund and earn 23.3% of its combined profit. By sector, Communication Services is the most expensive at 73.8 times earnings and Financial Services the cheapest at 13.7. Companies that lost money over the past year are 26.3% of the covered weight.

How these figures are calculated. Each ratio treats the fund as one company: the earnings, sales and book value of every holding are added up in proportion to its weight and divided into the fund's price. In practice that is a weighted harmonic mean, so a single stock with a very high P/E cannot distort the result, and loss-making companies reduce the fund's earnings instead of being dropped. Covers 92.6% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

Related: FESM chart, FESM performance, FESM holdings, FESM dividends.

FESM valuation FAQ

What is the P/E ratio of FESM?

Based on its holdings, FESM has a trailing P/E of 186.1 and a forward P/E of 13.3 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of FESM?

The trailing earnings yield is 0.54% (1 ÷ P/E) and the forward earnings yield 7.52%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is FESM more expensive than the S&P 500?

FESM trades at 186.1 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 13.3 and 19.9.

What is the price-to-book ratio of FESM?

The holdings of FESM trade at 2.28 times book value, with a combined return on equity of 1.2%.

Which sector in FESM has the highest P/E?

Communication Services has the highest P/E at 73.8 and Financial Services the lowest at 13.7.