Principal U.S. Mega-Cap ETF (USMC) Valuation
USMC valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 27.5 trailing earnings
- Forward P/E
- 21.3 analyst estimates
- Price / sales
- 5.28
- Price / book
- 6.57
- EV / EBITDA
- 20.5
- Earnings yield
- 3.63% inverse of P/E
- Dividend yield
- 0.80% of the holdings
- Return on equity
- 23.9% combined
- Net margin
- 19.2% combined
- Beta
- 1.17 weighted, vs S&P 500
USMC valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| USMC | 27.5 | 21.3 | 5.28 | 6.57 | 0.80% | 23.9% | 19.2% | 1.9% |
| 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.
USMC valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Technology | 40.9% | 32.6 | 21.5 | 11.61 | 15.19 | 0.50% | 46.6% |
| Financial Services | 21.2% | 18.9 | 18.0 | 5.65 | 3.18 | 1.03% | 16.8% |
| Healthcare | 9.6% | 48.0 | 20.5 | 8.93 | 18.20 | 1.52% | 37.9% |
| Communication Services | 8.9% | 20.2 | 22.5 | 8.67 | 7.05 | 0.28% | 34.9% |
| Consumer Defensive | 7.7% | 45.9 | 39.5 | 1.38 | 10.70 | 0.67% | 23.3% |
| Consumer Cyclical | 6.2% | 32.0 | 35.6 | 4.92 | 6.81 | 0.00% | 21.3% |
| Energy | 5.7% | 22.1 | 15.0 | 2.07 | 2.33 | 2.72% | 10.5% |
USMC 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 USMC weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
USMC largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| AAPL | Apple Inc. | 7.94% | 39.4 | 35.2 | 10.7 | 0.31% | 5.54% |
| NVDA | NVIDIA Corporation | 7.64% | 27.1 | 24.9 | 17.1 | 0.47% | 7.75% |
| MSFT | Microsoft Corporation | 5.69% | 29.5 | 25.1 | 11.8 | 0.74% | 5.30% |
| MA | Mastercard Incorporated | 5.32% | 34.0 | 24.2 | 15.4 | 0.56% | 4.30% |
| GOOGL | Alphabet Inc. | 5.08% | 17.1 | 22.8 | 9.3 | 0.26% | 8.17% |
| COST | Costco Wholesale Corporation | 5.02% | 47.6 | 40.3 | 1.4 | 0.59% | 2.90% |
| V | Visa Inc. | 4.89% | 34.3 | 24.0 | 17.0 | 0.67% | 3.92% |
| JPM | JPMorgan Chase & Co. | 4.33% | 14.2 | 13.5 | 4.7 | 1.94% | 8.34% |
| LLY | Eli Lilly and Company | 4.19% | 42.2 | 24.4 | 14.1 | 0.55% | 2.73% |
| AVGO | Broadcom Inc. | 4.00% | 43.3 | 19.4 | 17.6 | 0.79% | 2.54% |
| MU | Micron Technology, Inc. | 3.92% | 11.8 | 7.0 | 7.5 | 0.07% | 9.11% |
| META | Meta Platforms, Inc. | 3.83% | 26.7 | 22.1 | 7.9 | 0.30% | 3.94% |
| BRK.B | Berkshire Hathaway Inc. | 3.79% | 13.4 | 22.7 | 3.0 | — | 7.79% |
| AMZN | Amazon.com, Inc. | 3.72% | 20.1 | 23.6 | 3.5 | — | 5.09% |
| LRCX | Lam Research Corporation | 3.29% | 45.8 | 33.7 | 14.2 | 0.50% | 1.97% |
| CSCO | Cisco Systems, Inc. | 3.27% | 32.2 | 19.8 | 6.7 | 1.56% | 2.79% |
| AMD | Advanced Micro Devices, Inc. | 3.24% | 134.9 | 39.5 | 20.9 | — | 0.66% |
| XOM | Exxon Mobil Corporation | 2.95% | 23.0 | 14.8 | 2.0 | 2.30% | 3.52% |
| BAC | Bank of America Corporation | 2.90% | 12.2 | 10.8 | 3.1 | 2.50% | 6.53% |
| ABBV | AbbVie Inc. | 2.90% | 80.6 | 16.4 | 7.8 | 2.42% | 0.99% |
| CVX | Chevron Corporation | 2.78% | 21.2 | 15.2 | 2.1 | 3.16% | 3.60% |
| WMT | Walmart Inc. | 2.70% | 43.0 | 38.0 | 1.3 | 0.83% | 1.72% |
| JNJ | Johnson & Johnson | 2.55% | 38.8 | 21.0 | 6.2 | 2.10% | 1.81% |
| TSLA | Tesla, Inc. | 2.44% | 328.4 | 158.7 | 13.5 | — | 0.20% |
| INTC | Intel Corporation | 1.87% | — | 63.3 | 8.3 | — | −1.21% |
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 USMC valuation
Adding up its 25 holdings with company data, USMC trades at 27.5 times trailing earnings and 21.3 times analysts' forward estimates, with a price-to-book ratio of 6.57 and a dividend yield of 0.80%. Its earnings yield of 3.63% is 1.70 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 54.1% of the fund and earn 51.5% of its combined profit. By sector, Healthcare is the most expensive at 48.0 times earnings and Financial Services the cheapest at 18.9. Companies that lost money over the past year are 1.9% 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: USMC chart, USMC performance, USMC holdings, USMC dividends.
USMC valuation FAQ
What is the P/E ratio of USMC?
Based on its holdings, USMC has a trailing P/E of 27.5 and a forward P/E of 21.3 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of USMC?
The trailing earnings yield is 3.63% (1 ÷ P/E) and the forward earnings yield 4.68%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is USMC more expensive than the S&P 500?
USMC trades at 27.5 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 21.3 and 19.9.
What is the price-to-book ratio of USMC?
The holdings of USMC trade at 6.57 times book value, with a combined return on equity of 23.9%.
Which sector in USMC has the highest P/E?
Healthcare has the highest P/E at 48.0 and Financial Services the lowest at 18.9.