Franklin Intelligent Machines ETF (IQM) Valuation
IQM valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 42.2 trailing earnings
- Forward P/E
- 25.1 analyst estimates
- Price / sales
- 3.42
- Price / book
- 13.86
- EV / EBITDA
- 30.7
- Earnings yield
- 2.37% inverse of P/E
- Dividend yield
- 0.32% of the holdings
- Return on equity
- 32.8% combined
- Net margin
- 8.1% combined
- Beta
- 1.70 weighted, vs S&P 500
IQM valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| IQM | 42.2 | 25.1 | 3.42 | 13.86 | 0.32% | 32.8% | 8.1% | 6.6% |
| 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.
IQM valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Technology | 71.4% | 41.7 | 22.9 | 3.03 | 15.99 | 0.38% | 38.3% |
| Industrials | 17.6% | 55.0 | 34.9 | 5.32 | 12.83 | 0.15% | 23.3% |
| Energy | 3.0% | 18.6 | 19.6 | 2.09 | 4.68 | 0.62% | 25.2% |
| Consumer Cyclical | 2.4% | 191.0 | 104.9 | 12.08 | 11.49 | 0.00% | 6.0% |
| Healthcare | 2.2% | 44.7 | 33.2 | 12.73 | 12.00 | 0.00% | 26.9% |
| Communication Services | 2.1% | 17.1 | 22.8 | 9.34 | 6.90 | 0.26% | 40.4% |
IQM 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 IQM weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
IQM largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corporation | 8.42% | 27.1 | 24.9 | 17.1 | 0.47% | 15.53% |
| TSM | Taiwan Semiconductor Manufacturing Company Limited | 6.65% | 26.7 | 21.4 | 0.4 | 0.91% | 12.42% |
| AAPL | Apple Inc. | 4.65% | 39.4 | 35.2 | 10.7 | 0.31% | 5.90% |
| AVGO | Broadcom Inc. | 4.25% | 43.3 | 19.4 | 17.6 | 0.79% | 4.90% |
| CLS | Celestica Inc. | 4.22% | — | — | — | — | — |
| SNDK | Sandisk Corporation | 4.04% | 17.6 | 8.0 | 9.3 | — | 11.46% |
| GEV | GE Vernova Inc. | 3.23% | 26.4 | 38.8 | 5.9 | 0.22% | 6.11% |
| BE | Bloom Energy Corporation | 3.08% | 291.2 | 57.1 | 20.9 | — | 0.53% |
| ANET | Arista Networks, Inc. | 2.79% | 55.8 | 39.2 | 21.2 | — | 2.50% |
| TER | Teradyne, Inc. | 2.69% | 44.6 | 30.7 | 11.4 | 0.16% | 3.01% |
| AMD | Advanced Micro Devices, Inc. | 2.60% | 134.9 | 39.5 | 20.9 | — | 0.96% |
| TSLA | Tesla, Inc. | 2.28% | 328.4 | 158.7 | 13.5 | — | 0.35% |
| LRCX | Lam Research Corporation | 2.02% | 45.8 | 33.7 | 14.2 | 0.50% | 2.21% |
| ASML | ASML Holding N.V. | 1.88% | 40.4 | 28.9 | 16.0 | 0.55% | 2.33% |
| NET | Cloudflare, Inc. | 1.85% | — | 178.6 | 42.0 | — | −0.16% |
| KLAC | KLA Corporation | 1.85% | 45.3 | 34.8 | 15.9 | 0.56% | 2.04% |
| PWR | Quanta Services, Inc. | 1.83% | 72.4 | 33.0 | 2.9 | 0.07% | 1.26% |
| LITE | Lumentum Holdings Inc. | 1.76% | — | 42.9 | 24.8 | — | −9.91% |
| 000660 | SK Hynix Inc | 1.73% | — | — | — | — | — |
| AMAT | Applied Materials, Inc. | 1.67% | 35.3 | 23.4 | 10.5 | 0.52% | 2.37% |
| APH | Amphenol Corporation | 1.41% | 39.7 | 24.6 | 6.7 | 0.63% | 1.77% |
| MRVL | Marvell Technology, Inc. | 1.40% | 72.3 | 62.1 | 21.7 | 0.11% | 0.97% |
| STX | Seagate Technology Holdings plc | 1.30% | 46.0 | 25.7 | 11.9 | 0.46% | 1.42% |
| FTI | TechnipFMC plc | 1.21% | 24.3 | 21.3 | 2.6 | 0.29% | 2.50% |
| GOOGL | Alphabet Inc. | 1.21% | 17.1 | 22.8 | 9.3 | 0.26% | 3.54% |
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 IQM valuation
Adding up its 62 holdings with company data, IQM trades at 42.2 times trailing earnings and 25.1 times analysts' forward estimates, with a price-to-book ratio of 13.86 and a dividend yield of 0.32%. Its earnings yield of 2.37% is 2.96 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 44.0% of the fund and earn 63.3% of its combined profit. By sector, Consumer Cyclical is the most expensive at 191.0 times earnings and Communication Services the cheapest at 17.1. Companies that lost money over the past year are 6.6% 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 85.4% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.
Related: IQM chart, IQM performance, IQM holdings.
IQM valuation FAQ
What is the P/E ratio of IQM?
Based on its holdings, IQM has a trailing P/E of 42.2 and a forward P/E of 25.1 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of IQM?
The trailing earnings yield is 2.37% (1 ÷ P/E) and the forward earnings yield 3.98%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is IQM more expensive than the S&P 500?
IQM trades at 42.2 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 25.1 and 19.9.
What is the price-to-book ratio of IQM?
The holdings of IQM trade at 13.86 times book value, with a combined return on equity of 32.8%.
Which sector in IQM has the highest P/E?
Consumer Cyclical has the highest P/E at 191.0 and Communication Services the lowest at 17.1.