First Trust New Constructs Core Earnings… (FTCE) Valuation
FTCE valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 67.4 trailing earnings
- Forward P/E
- 17.0 analyst estimates
- Price / sales
- 2.28
- Price / book
- 5.00
- EV / EBITDA
- 17.4
- Earnings yield
- 1.48% inverse of P/E
- Dividend yield
- 1.52% of the holdings
- Return on equity
- 7.4% combined
- Net margin
- 3.4% combined
- Beta
- 1.09 weighted, vs S&P 500
FTCE valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| FTCE | 67.4 | 17.0 | 2.28 | 5.00 | 1.52% | 7.4% | 3.4% | 16.3% |
| SPY | 25.9 | 19.9 | 3.67 | 5.47 | 1.08% | 21.1% | 14.2% | 1.9% |
| QQQ | 34.2 | 23.4 | 5.93 | 9.27 | 0.58% | 27.1% | 17.4% | 6.9% |
| DIA | 20.9 | 18.4 | 3.16 | 5.52 | 1.55% | 26.4% | 15.1% | 0.0% |
| VTI | 28.2 | 19.4 | 3.31 | 5.00 | 1.07% | 17.7% | 11.8% | 4.6% |
| IWM | n/m | 13.9 | 1.25 | 2.03 | 1.38% | −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.
FTCE valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Technology | 40.6% | n/m | 19.0 | 3.52 | 5.68 | 1.03% | −0.7% |
| Financial Services | 12.4% | 27.2 | 18.0 | 6.10 | 5.62 | 1.10% | 20.6% |
| Healthcare | 10.9% | 59.3 | 16.9 | 2.37 | 7.23 | 1.71% | 12.2% |
| Consumer Cyclical | 8.6% | n/m | 10.3 | 0.60 | 2.55 | 2.54% | −3.5% |
| Communication Services | 7.0% | 49.4 | 26.7 | 4.59 | 9.33 | 0.19% | 18.9% |
| Industrials | 6.9% | 28.9 | 18.6 | 2.14 | 6.03 | 1.72% | 20.9% |
| Consumer Defensive | 5.1% | 23.7 | 14.4 | 1.30 | 18.36 | 3.93% | 77.6% |
| Energy | 4.0% | 18.1 | 11.7 | 2.35 | 2.23 | 2.38% | 12.4% |
| Utilities | 2.1% | 22.2 | 15.3 | 2.90 | 2.00 | 2.90% | 9.0% |
| Real Estate | 2.0% | 47.6 | 33.6 | 3.98 | 3.45 | 3.18% | 7.2% |
| Basic Materials | 1.7% | 21.7 | 13.8 | 4.62 | 3.91 | 1.61% | 18.0% |
FTCE earnings yield vs bond yields
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 FTCE weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
FTCE largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| IBM | International Business Machines Corporation | 5.33% | 20.6 | 17.4 | 3.2 | 2.91% | 17.21% |
| ACN | Accenture plc | 4.75% | 16.9 | 12.4 | 1.9 | 2.98% | 18.65% |
| SBUX | Starbucks Corporation | 4.35% | 56.4 | 30.9 | 2.9 | 2.58% | 5.14% |
| META | Meta Platforms, Inc. | 4.32% | 26.7 | 22.1 | 7.9 | 0.30% | 10.77% |
| LLY | Eli Lilly and Company | 4.11% | 42.2 | 24.4 | 14.1 | 0.55% | 6.49% |
| PANW | Palo Alto Networks, Inc. | 4.11% | 855.0 | 94.3 | 24.4 | — | 0.32% |
| V | Visa Inc. | 3.92% | 34.3 | 24.0 | 17.0 | 0.67% | 7.62% |
| STX | Seagate Technology Holdings plc | 3.35% | 46.0 | 25.7 | 11.9 | 0.46% | 4.85% |
| ADBE | Adobe Inc. | 3.25% | 13.7 | 8.7 | 3.7 | — | 15.80% |
| INTC | Intel Corporation | 3.20% | — | 63.3 | 8.3 | — | −5.03% |
| MA | Mastercard Incorporated | 2.89% | 34.0 | 24.2 | 15.4 | 0.56% | 5.67% |
| NET | Cloudflare, Inc. | 2.79% | — | 178.6 | 42.0 | — | −0.33% |
| GM | General Motors Company | 2.47% | 37.7 | 5.6 | 0.4 | 0.86% | 4.36% |
| MO | Altria Group, Inc. | 2.43% | 15.8 | 11.9 | 6.1 | 5.91% | 10.25% |
| ABBV | AbbVie Inc. | 1.77% | 80.6 | 16.4 | 7.8 | 2.42% | 1.46% |
| F | Ford Motor Company | 1.75% | — | 7.0 | 0.3 | 4.83% | −17.27% |
| LITE | Lumentum Holdings Inc. | 1.69% | — | 42.9 | 24.8 | — | −12.69% |
| APH | Amphenol Corporation | 1.62% | 39.7 | 24.6 | 6.7 | 0.63% | 2.72% |
| TTWO | Take-Two Interactive Software, Inc. | 1.61% | — | 28.2 | 5.7 | — | −0.90% |
| EOG | EOG Resources, Inc. | 1.47% | 12.3 | 10.1 | 3.1 | 2.58% | 7.98% |
| CL | Colgate-Palmolive Company | 1.46% | 37.1 | 21.0 | 3.6 | 2.25% | 2.62% |
| MSTR | MicroStrategy Incorporated | 1.44% | — | 6.8 | 116.3 | — | −66.41% |
| ETN | Eaton Corporation plc | 1.34% | 39.8 | 27.6 | 5.1 | 1.12% | 2.24% |
| SLB | Schlumberger Limited | 1.33% | 23.9 | 15.9 | 2.0 | 2.38% | 3.71% |
| MRK | Merck & Co., Inc. | 1.33% | 115.8 | 15.3 | 5.4 | 2.33% | 0.77% |
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 FTCE valuation
Adding up its 100 holdings with company data, FTCE trades at 67.4 times trailing earnings and 17.0 times analysts' forward estimates, with a price-to-book ratio of 5.00 and a dividend yield of 1.52%. Its earnings yield of 1.48% is 3.84 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 40.7% of the fund and earn 81.8% of its combined profit. By sector, Healthcare is the most expensive at 59.3 times earnings and Energy the cheapest at 18.1. Companies that lost money over the past year are 16.3% 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 100.0% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.
Related: FTCE chart, FTCE performance, FTCE holdings, FTCE dividends.
FTCE valuation FAQ
What is the P/E ratio of FTCE?
Based on its holdings, FTCE has a trailing P/E of 67.4 and a forward P/E of 17.0 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of FTCE?
The trailing earnings yield is 1.48% (1 ÷ P/E) and the forward earnings yield 5.88%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is FTCE more expensive than the S&P 500?
FTCE trades at 67.4 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 17.0 and 19.9.
What is the price-to-book ratio of FTCE?
The holdings of FTCE trade at 5.00 times book value, with a combined return on equity of 7.4%.
Which sector in FTCE has the highest P/E?
Healthcare has the highest P/E at 59.3 and Energy the lowest at 18.1.