Vanguard U.S. Quality Factor (VFQY) Valuation

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

VFQY valuation today

Holdings combined · company data as of Oct 26, 2026

P/E (TTM): 24.5
Forward P/E: 15.8
Price / sales: 1.83
Price / book: 3.89
EV / EBITDA: 12.8
Earnings yield: 4.08%
Dividend yield: 1.07%
Return on equity: 15.9%
Net margin: 7.5%
Beta: 1.02

VFQY valuation vs other stock ETFs

P/E (TTM)Forward P/E

VFQY valuation compared with other stock ETFs
ETF	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE	Net margin	Loss-makers
VFQY	24.5	15.8	1.83	3.89	1.07%	15.9%	7.5%	5.4%
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.

VFQY valuation by sector

P/E (TTM)Forward P/E

VFQY valuation by sector
Sector	Weight	P/E	Fwd P/E	P/S	P/B	Div. yield	ROE
Technology	24.0%	31.3	18.7	3.59	9.07	0.45%	28.9%
Financial Services	20.1%	11.4	11.3	2.33	1.93	1.77%	17.0%
Industrials	17.7%	29.0	19.4	1.80	5.75	1.25%	19.8%
Consumer Cyclical	13.0%	29.9	14.4	0.92	3.44	1.23%	11.5%
Healthcare	9.7%	78.1	18.8	2.84	6.03	0.47%	7.7%
Consumer Defensive	6.6%	52.5	19.2	0.82	3.70	1.21%	7.1%
Basic Materials	3.4%	84.3	15.3	2.52	4.23	1.75%	5.0%
Communication Services	3.0%	55.9	16.4	2.71	4.57	0.14%	8.2%
Energy	2.0%	14.9	12.1	1.79	2.34	1.61%	15.7%
Services	0.2%	14.2	15.3	1.60	2.99	2.71%	21.0%

VFQY earnings yield vs bond yields

VFQY earnings yield (forward)

6.32%

VFQY earnings yield (trailing)

4.08%

VFQY dividend yield

1.07%

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 VFQY weight splits by P/E

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

VFQY largest holdings: valuation

VFQY largest holdings valuation
Symbol	Company	Weight	P/E	Fwd P/E	P/S	Div. yield	Share of earnings
KLAC	KLA Corporation	1.88%	45.3	34.8	15.9	0.56%	1.03%
LRCX	Lam Research Corporation	1.80%	45.8	33.7	14.2	0.50%	0.97%
FTNT	Fortinet, Inc.	1.75%	59.8	45.0	16.5	—	0.72%
SNDK	Sandisk Corporation	1.51%	17.6	8.0	9.3	—	2.12%
LLY	Eli Lilly and Company	1.45%	42.2	24.4	14.1	0.55%	0.85%
AAPL	Apple Inc.	1.39%	39.4	35.2	10.7	0.31%	0.87%
ADSK	Autodesk, Inc.	1.33%	31.1	17.6	6.4	—	1.05%
TT	Trane Technologies plc	1.32%	34.2	25.2	4.5	0.92%	0.96%
V	Visa Inc.	1.29%	34.3	24.0	17.0	0.67%	0.93%
COST	Costco Wholesale Corporation	1.25%	47.6	40.3	1.4	0.59%	0.65%
WDC	Western Digital Corporation	1.18%	12.3	22.8	9.6	0.18%	2.36%
CTAS	Cintas Corporation	1.17%	42.1	36.2	7.3	0.97%	0.69%
INTU	Intuit Inc.	1.15%	19.8	12.7	4.1	1.70%	1.44%
GILD	Gilead Sciences, Inc.	1.11%	—	15.6	6.4	2.10%	−0.46%
MMM	3M Company	1.08%	29.3	17.8	3.4	1.89%	0.91%
BNY	The Bank of New York Mellon Corporation	1.05%	15.9	15.0	4.4	1.55%	1.63%
ROST	Ross Stores, Inc.	1.03%	28.6	27.4	3.1	0.75%	0.88%
TRV	The Travelers Companies, Inc.	1.01%	10.5	10.8	1.7	1.28%	2.38%
ADBE	Adobe Inc.	1.00%	13.7	8.7	3.7	—	1.81%
AXP	American Express Company	0.99%	19.0	15.1	3.0	1.21%	1.28%
WMT	Walmart Inc.	0.93%	43.0	38.0	1.3	0.83%	0.53%
TJX	The TJX Companies, Inc.	0.91%	27.3	24.9	2.6	1.30%	0.83%
NFLX	Netflix, Inc.	0.90%	22.2	18.7	6.1	—	1.01%
NEM	Newmont Corporation	0.89%	15.0	11.6	4.8	0.88%	1.46%
PG	The Procter & Gamble Company	0.86%	24.1	21.2	4.3	2.73%	0.89%

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 VFQY valuation

Adding up its 431 holdings with company data, VFQY trades at 24.5 times trailing earnings and 15.8 times analysts' forward estimates, with a price-to-book ratio of 3.89 and a dividend yield of 1.07%. Its earnings yield of 4.08% is 1.25 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 15.0% of the fund and earn 10.2% of its combined profit. By sector, Basic Materials is the most expensive at 84.3 times earnings and Financial Services the cheapest at 11.4. Companies that lost money over the past year are 5.4% 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 99.6% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

VFQY valuation FAQ

What is the P/E ratio of VFQY?

Based on its holdings, VFQY has a trailing P/E of 24.5 and a forward P/E of 15.8 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of VFQY?

The trailing earnings yield is 4.08% (1 ÷ P/E) and the forward earnings yield 6.32%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is VFQY more expensive than the S&P 500?

VFQY trades at 24.5 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 15.8 and 19.9.

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

The holdings of VFQY trade at 3.89 times book value, with a combined return on equity of 15.9%.

Which sector in VFQY has the highest P/E?

Basic Materials has the highest P/E at 84.3 and Financial Services the lowest at 11.4.