Invesco Aerospace & Defense ETF (PPA) Valuation
PPA valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 32.3 trailing earnings
- Forward P/E
- 23.0 analyst estimates
- Price / sales
- 2.26
- Price / book
- 5.34
- EV / EBITDA
- 18.3
- Earnings yield
- 3.10% inverse of P/E
- Dividend yield
- 1.02% of the holdings
- Return on equity
- 16.6% combined
- Net margin
- 7.0% combined
- Beta
- 0.75 weighted, vs S&P 500
PPA valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| PPA | 32.3 | 23.0 | 2.26 | 5.34 | 1.02% | 16.6% | 7.0% | 5.7% |
| 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.
PPA valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Industrials | 78.5% | 32.1 | 23.3 | 2.24 | 5.40 | 1.10% | 16.8% |
| Technology | 8.9% | 32.8 | 20.4 | 2.40 | 4.98 | 0.35% | 15.2% |
| Information Technology | 0.2% | n/m | 45.0 | 20.20 | 2.74 | 0.00% | −2.7% |
| Communication Services | 0.2% | 49.7 | 24.5 | 5.25 | 10.83 | 1.37% | 21.8% |
PPA 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 PPA weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
PPA largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| RTX | RTX Corporation | 9.75% | 34.1 | 24.6 | 2.8 | 1.51% | 11.11% |
| LMT | Lockheed Martin Corporation | 9.60% | 20.3 | 16.2 | 1.7 | 2.61% | 18.36% |
| BA | The Boeing Company | 9.09% | 67.9 | 49.5 | 1.6 | — | 5.21% |
| GCP | General Electric Company | 8.17% | — | — | — | — | — |
| GD | General Dynamics Corporation | 5.67% | 21.0 | 18.5 | 1.7 | 1.85% | 10.51% |
| NOC | Northrop Grumman Corporation | 5.18% | 16.5 | 17.0 | 1.7 | 1.90% | 12.19% |
| LHX | L3Harris Technologies, Inc. | 4.12% | 25.1 | 17.9 | 2.0 | 2.01% | 6.41% |
| HONAV | Honeywell Aerospace Inc. Common Stock When Issued | 4.09% | — | — | — | — | — |
| TDG | TransDigm Group Incorporated | 3.42% | 34.6 | 23.1 | 6.3 | — | 3.86% |
| HWM | Howmet Aerospace Inc. | 3.41% | 47.6 | 36.0 | 9.7 | 0.25% | 2.79% |
| PH | Parker-Hannifin Corporation | 3.25% | 33.8 | 27.5 | 5.7 | 0.83% | 3.74% |
| ESLT | Elbit Systems Ltd | 2.94% | — | — | — | — | — |
| APH | Amphenol Corporation | 2.06% | 39.7 | 24.6 | 6.7 | 0.63% | 2.02% |
| AXON | Axon Enterprise, Inc. | 2.01% | 161.9 | 58.1 | 9.8 | — | 0.48% |
| ETN | Eaton Corporation plc | 1.77% | 39.8 | 27.6 | 5.1 | 1.12% | 1.73% |
| PLTR | Palantir Technologies Inc. | 1.69% | 160.4 | 85.5 | 72.6 | — | 0.41% |
| HEI | HEICO Corporation | 1.25% | 51.6 | 42.6 | 8.4 | 0.08% | 0.94% |
| ATI | ATI Inc. | 1.23% | 54.4 | 28.8 | 5.4 | — | 0.88% |
| LDOS | Leidos Holdings, Inc. | 1.02% | 11.7 | 9.6 | 0.9 | 1.38% | 3.40% |
| CW | Curtiss-Wright Corporation | 1.02% | 34.6 | 28.4 | 5.1 | 0.21% | 1.14% |
| CACI | CACI International Inc | 1.00% | 25.4 | 17.8 | 1.4 | — | 1.53% |
| WWD | Woodward, Inc. | 0.98% | 36.5 | 31.6 | 4.6 | 0.39% | 1.05% |
| SPCX | Space Exploration Technologies Corp. | 0.94% | — | 200.0 | 83.5 | — | −0.16% |
| HII | Huntington Ingalls Industries, Inc. | 0.94% | 16.2 | 12.6 | 0.8 | 2.03% | 2.25% |
| TXT | Textron Inc. | 0.84% | 14.3 | 10.4 | 0.9 | 0.11% | 2.28% |
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 PPA valuation
Adding up its 58 holdings with company data, PPA trades at 32.3 times trailing earnings and 23.0 times analysts' forward estimates, with a price-to-book ratio of 5.34 and a dividend yield of 1.02%. Its earnings yield of 3.10% is 2.23 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 62.5% of the fund and earn 76.2% of its combined profit. By sector, Communication Services is the most expensive at 49.7 times earnings and Industrials the cheapest at 32.1. Companies that lost money over the past year are 5.7% 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 82.8% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.
Related: PPA chart, PPA performance, PPA holdings, PPA dividends.
PPA valuation FAQ
What is the P/E ratio of PPA?
Based on its holdings, PPA has a trailing P/E of 32.3 and a forward P/E of 23.0 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of PPA?
The trailing earnings yield is 3.10% (1 ÷ P/E) and the forward earnings yield 4.36%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is PPA more expensive than the S&P 500?
PPA trades at 32.3 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 23.0 and 19.9.
What is the price-to-book ratio of PPA?
The holdings of PPA trade at 5.34 times book value, with a combined return on equity of 16.6%.
Which sector in PPA has the highest P/E?
Communication Services has the highest P/E at 49.7 and Industrials the lowest at 32.1.