iShares MSCI USA Quality Factor ETF (QUAL) Valuation

Cboe BZX: QUALP/E, earnings yield and other ratios of the holdings combined.

QUAL valuation today

Holdings combined · company data as of Oct 26, 2026

P/E (TTM): 27.3
Forward P/E: 21.9
Price / sales: 4.76
Price / book: 7.35
EV / EBITDA: 17.9
Earnings yield: 3.67%
Dividend yield: 0.99%
Return on equity: 27.0%
Net margin: 17.5%
Beta: 1.01

QUAL valuation vs other stock ETFs

P/E (TTM)Forward P/E

QUAL valuation compared with other stock ETFs
ETF	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE	Net margin	Loss-makers
QUAL	27.3	21.9	4.76	7.35	0.99%	27.0%	17.5%	0.7%
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.

QUAL valuation by sector

P/E (TTM)Forward P/E

QUAL valuation by sector
Sector	Weight	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE
Technology	37.4%	31.2	24.8	8.60	13.47	0.67%	43.1%
Financial Services	12.3%	20.2	18.7	4.79	3.96	0.81%	19.6%
Healthcare	10.0%	48.7	20.8	8.10	11.27	1.23%	23.2%
Communication Services	9.8%	21.7	20.8	7.62	7.53	0.25%	34.7%
Consumer Cyclical	8.8%	23.1	21.5	2.09	8.76	1.04%	38.0%
Industrials	7.0%	29.9	23.2	3.50	14.92	1.40%	49.9%
Consumer Defensive	4.5%	31.1	27.4	2.10	8.77	1.71%	28.2%
Energy	3.6%	19.7	13.8	2.16	2.41	2.29%	12.2%
Utilities	2.0%	19.9	17.1	3.46	1.80	2.86%	9.0%
Basic Materials	1.8%	30.9	22.7	5.17	6.20	1.13%	20.1%
Real Estate	1.6%	27.4	26.0	4.21	3.42	3.22%	12.5%

QUAL earnings yield vs bond yields

QUAL earnings yield (forward)

4.57%

QUAL earnings yield (trailing)

3.67%

QUAL dividend yield

0.99%

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 QUAL weight splits by P/E

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

QUAL largest holdings: valuation

QUAL largest holdings valuation
Symbol	Company	Weight	P/E	Fwd P/E	P/S	Div. yield	Share of earnings
MSFT	Microsoft Corporation	7.50%	29.5	25.1	11.8	0.74%	7.02%
AAPL	Apple Inc.	7.00%	39.4	35.2	10.7	0.31%	4.90%
NVDA	NVIDIA Corporation	6.03%	27.1	24.9	17.1	0.47%	6.14%
META	Meta Platforms, Inc.	4.33%	26.7	22.1	7.9	0.30%	4.47%
LLY	Eli Lilly and Company	4.05%	42.2	24.4	14.1	0.55%	2.64%
TJX	The TJX Companies, Inc.	3.76%	27.3	24.9	2.6	1.30%	3.80%
V	Visa Inc.	3.39%	34.3	24.0	17.0	0.67%	2.73%
LRCX	Lam Research Corporation	2.65%	45.8	33.7	14.2	0.50%	1.60%
XOM	Exxon Mobil Corporation	2.52%	23.0	14.8	2.0	2.30%	3.01%
MA	Mastercard Incorporated	2.36%	34.0	24.2	15.4	0.56%	1.92%
JNJ	Johnson & Johnson	2.20%	38.8	21.0	6.2	2.10%	1.56%
AMAT	Applied Materials, Inc.	2.19%	35.3	23.4	10.5	0.52%	1.71%
BRK.B	Berkshire Hathaway Inc.	2.01%	13.4	22.7	3.0	—	4.14%
KLAC	KLA Corporation	1.97%	45.3	34.8	15.9	0.56%	1.20%
GOOGL	Alphabet Inc.	1.84%	17.1	22.8	9.3	0.26%	2.96%
NFLX	Netflix, Inc.	1.62%	22.2	18.7	6.1	—	2.01%
MRK	Merck & Co., Inc.	1.42%	115.8	15.3	5.4	2.33%	0.34%
GOOG	Alphabet Inc.	1.42%	16.9	21.8	9.2	0.26%	2.32%
ROST	Ross Stores, Inc.	1.42%	28.6	27.4	3.1	0.75%	1.36%
ADP	Automatic Data Processing, Inc.	1.32%	26.4	22.0	5.2	2.35%	1.37%
ANET	Arista Networks, Inc.	1.25%	55.8	39.2	21.2	—	0.62%
FTNT	Fortinet, Inc.	1.17%	59.8	45.0	16.5	—	0.54%
COST	Costco Wholesale Corporation	1.14%	47.6	40.3	1.4	0.59%	0.66%
ADBE	Adobe Inc.	1.08%	13.7	8.7	3.7	—	2.18%
LIN	Linde plc	1.06%	32.2	23.6	6.5	1.28%	0.91%

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 QUAL valuation

Adding up its 118 holdings with company data, QUAL trades at 27.3 times trailing earnings and 21.9 times analysts' forward estimates, with a price-to-book ratio of 7.35 and a dividend yield of 0.99%. Its earnings yield of 3.67% is 1.66 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 43.6% of the fund and earn 38.2% of its combined profit. By sector, Healthcare is the most expensive at 48.7 times earnings and Energy the cheapest at 19.7. Companies that lost money over the past year are 0.7% 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 100.0% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

QUAL valuation FAQ

What is the P/E ratio of QUAL?

Based on its holdings, QUAL has a trailing P/E of 27.3 and a forward P/E of 21.9 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of QUAL?

The trailing earnings yield is 3.67% (1 ÷ P/E) and the forward earnings yield 4.57%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is QUAL more expensive than the S&P 500?

QUAL trades at 27.3 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 21.9 and 19.9.

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

The holdings of QUAL trade at 7.35 times book value, with a combined return on equity of 27.0%.

Which sector in QUAL has the highest P/E?

Healthcare has the highest P/E at 48.7 and Energy the lowest at 19.7.