iShares U.S. Pharmaceuticals ETF (IHE) Valuation

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

IHE valuation today

Holdings combined · company data as of Oct 26, 2026
P/E (TTM)
50.6
trailing earnings
Forward P/E
14.8
analyst estimates
Price / sales
4.13
Price / book
5.11
EV / EBITDA
15.8
Earnings yield
1.98%
inverse of P/E
Dividend yield
1.59%
of the holdings
Return on equity
10.1%
combined
Net margin
8.2%
combined
Beta
0.48
weighted, vs S&P 500

IHE valuation vs other stock ETFs

P/E (TTM)Forward P/E
IHE valuation compared with other stock ETFs
ETFP/EFwd P/EP/SP/BDiv. yieldROENet marginLoss-makers
IHE50.614.84.135.111.59%10.1%8.2%13.8%
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.

IHE valuation by sector

IHE valuation by sector
SectorWeightP/EFwd P/EP/SP/BDiv. yieldROE
Healthcare99.5%50.614.84.135.111.59%10.1%

IHE earnings yield vs bond yields

IHE earnings yield (forward)
6.76%
IHE earnings yield (trailing)
1.98%
IHE dividend yield
1.59%
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 IHE weight splits by P/E

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

IHE largest holdings: valuation

IHE largest holdings valuation
SymbolCompanyWeightP/EFwd P/EP/SDiv. yieldShare of earnings
LLYEli Lilly and Company25.36%42.224.414.10.55%31.96%
JNJJohnson & Johnson21.68%38.821.06.22.10%29.72%
PFEPfizer Inc.4.92%38.99.72.65.81%6.72%
ZTSZoetis Inc.4.82%13.112.03.42.67%19.65%
VTRSViatris Inc.4.77%—6.41.52.57%−4.89%
RPRXRoyalty Pharma plc4.40%32.429.413.91.54%7.21%
MRKMerck & Co., Inc.4.25%115.815.35.42.33%1.95%
BMYBristol-Myers Squibb Company4.14%13.29.42.54.22%16.73%
JAZZJazz Pharmaceuticals plc2.93%14.410.93.0—10.80%
ELANElanco Animal Health Incorporated2.42%—17.42.3—−2.24%
CORTCorcept Therapeutics Incorporated2.27%244.819.314.3—0.49%
AXSMAxsome Therapeutics, Inc.1.47%—32.210.6—−1.86%
LGNDLigand Pharmaceuticals Incorporated1.34%31.124.820.3—2.29%
DFTXDefinium Therapeutics, Inc.1.08%—————
MANEVeradermics, Incorporated0.97%—————
INDVIndivior PLC0.86%11.69.52.9—3.95%
AMRXAmneal Pharmaceuticals, Inc.0.84%39.16.32.1—1.15%
OGNOrganon & Co.0.78%17.65.10.60.58%2.35%
EWTXEdgewise Therapeutics, Inc.0.72%—————
AMLXAmylyx Pharmaceuticals, Inc.0.62%—2.80.7—−1.77%
LQDALiquidia Corporation0.61%24.710.56.8—1.31%
ELVNEnliven Therapeutics, Inc.0.59%—————
TARSTarsus Pharmaceuticals, Inc.0.57%—68.05.3—−0.48%
SUPNSupernus Pharmaceuticals, Inc.0.54%—20.22.7—−1.46%
PRGOPerrigo Company plc0.50%—6.00.66.98%−19.80%

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 IHE valuation

Adding up its 45 holdings with company data, IHE trades at 50.6 times trailing earnings and 14.8 times analysts' forward estimates, with a price-to-book ratio of 5.11 and a dividend yield of 1.59%. Its earnings yield of 1.98% is 3.35 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 79.7% of the fund and earn 117.6% of its combined profit. Companies that lost money over the past year are 13.8% 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 95.7% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

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

IHE valuation FAQ

What is the P/E ratio of IHE?

Based on its holdings, IHE has a trailing P/E of 50.6 and a forward P/E of 14.8 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of IHE?

The trailing earnings yield is 1.98% (1 ÷ P/E) and the forward earnings yield 6.76%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is IHE more expensive than the S&P 500?

IHE trades at 50.6 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 14.8 and 19.9.

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

The holdings of IHE trade at 5.11 times book value, with a combined return on equity of 10.1%.