SPDR S&P Aerospace & Defense ETF (XAR) Valuation
XAR valuation today
Holdings combined · company data as of Oct 26, 2026- P/E (TTM)
- 131.4 trailing earnings
- Forward P/E
- 24.1 analyst estimates
- Price / sales
- 2.72
- Price / book
- 4.08
- EV / EBITDA
- 20.7
- Earnings yield
- 0.76% inverse of P/E
- Dividend yield
- 0.58% of the holdings
- Return on equity
- 3.1% combined
- Net margin
- 2.1% combined
- Beta
- 1.02 weighted, vs S&P 500
XAR valuation vs other stock ETFs
| ETF | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE | Net margin | Loss-makers |
|---|---|---|---|---|---|---|---|---|
| XAR | 131.4 | 24.1 | 2.72 | 4.08 | 0.58% | 3.1% | 2.1% | 17.4% |
| 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.
XAR valuation by sector
| Sector | Weight | P/E | Fwd P/E | P/S | P/B | Div. yield | ROE |
|---|---|---|---|---|---|---|---|
| Industrials | 93.5% | 131.4 | 24.1 | 2.72 | 4.08 | 0.58% | 3.1% |
XAR 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 XAR weight splits by P/E
Share of the covered weight in companies with a trailing P/E in each range.
XAR largest holdings: valuation
| Symbol | Company | Weight | P/E | Fwd P/E | P/S | Div. yield | Share of earnings |
|---|---|---|---|---|---|---|---|
| LMT | Lockheed Martin Corporation | 3.69% | 20.3 | 16.2 | 1.7 | 2.61% | 26.24% |
| HONAV | Honeywell Aerospace Inc. Common Stock When Issued | 3.54% | — | — | — | — | — |
| TDG | TransDigm Group Incorporated | 3.39% | 34.6 | 23.1 | 6.3 | — | 14.16% |
| NOC | Northrop Grumman Corporation | 3.28% | 16.5 | 17.0 | 1.7 | 1.90% | 28.70% |
| GD | General Dynamics Corporation | 3.25% | 21.0 | 18.5 | 1.7 | 1.85% | 22.35% |
| LHX | L3Harris Technologies, Inc. | 3.09% | 25.1 | 17.9 | 2.0 | 2.01% | 17.82% |
| HII | Huntington Ingalls Industries, Inc. | 3.06% | 16.2 | 12.6 | 0.8 | 2.03% | 27.24% |
| TXT | Textron Inc. | 3.05% | 14.3 | 10.4 | 0.9 | 0.11% | 30.78% |
| HEI | HEICO Corporation | 3.04% | 51.6 | 42.6 | 8.4 | 0.08% | 8.50% |
| WWD | Woodward, Inc. | 3.01% | 36.5 | 31.6 | 4.6 | 0.39% | 11.89% |
| RTX | RTX Corporation | 2.99% | 34.1 | 24.6 | 2.8 | 1.51% | 12.65% |
| MOG.A | Moog Inc. | 2.96% | 31.1 | 31.7 | 2.7 | 0.33% | 13.75% |
| KRMN | Karman Holdings Inc. | 2.92% | 119.6 | 41.3 | 7.8 | — | 3.53% |
| BA | The Boeing Company | 2.85% | 67.9 | 49.5 | 1.6 | — | 6.06% |
| GCP | General Electric Company | 2.79% | — | — | — | — | — |
| HWM | Howmet Aerospace Inc. | 2.77% | 47.6 | 36.0 | 9.7 | 0.25% | 8.40% |
| FTAI | FTAI Aviation Ltd. | 2.76% | 35.8 | 13.5 | 5.4 | 1.22% | 11.14% |
| AXON | Axon Enterprise, Inc. | 2.74% | 161.9 | 58.1 | 9.8 | — | 2.44% |
| KTOS | Kratos Defense & Security Solutions, Inc. | 2.70% | 237.8 | 45.2 | 5.0 | — | 1.64% |
| SARO | StandardAero, Inc. | 2.69% | 22.0 | 14.2 | 1.1 | — | 17.71% |
| HXL | Hexcel Corporation | 2.66% | 45.6 | 20.3 | 3.4 | 0.80% | 8.42% |
| AVAV | AeroVironment, Inc. | 2.62% | — | 55.2 | 3.1 | — | −12.60% |
| ATI | ATI Inc. | 2.55% | 54.4 | 28.8 | 5.4 | — | 6.77% |
| CW | Curtiss-Wright Corporation | 2.55% | 34.6 | 28.4 | 5.1 | 0.21% | 10.65% |
| BWXT | BWX Technologies, Inc. | 2.47% | 35.5 | 27.0 | 3.6 | 0.77% | 10.07% |
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 XAR valuation
Adding up its 46 holdings with company data, XAR trades at 131.4 times trailing earnings and 24.1 times analysts' forward estimates, with a price-to-book ratio of 4.08 and a dividend yield of 0.58%. Its earnings yield of 0.76% is 4.57 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).
The ten largest holdings are 32.4% of the fund and earn 200.3% of its combined profit. Companies that lost money over the past year are 17.4% 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 91.1% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.
Related: XAR chart, XAR performance, XAR holdings, XAR dividends.
XAR valuation FAQ
What is the P/E ratio of XAR?
Based on its holdings, XAR has a trailing P/E of 131.4 and a forward P/E of 24.1 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).
What is the earnings yield of XAR?
The trailing earnings yield is 0.76% (1 ÷ P/E) and the forward earnings yield 4.15%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.
Is XAR more expensive than the S&P 500?
XAR trades at 131.4 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 24.1 and 19.9.
What is the price-to-book ratio of XAR?
The holdings of XAR trade at 4.08 times book value, with a combined return on equity of 3.1%.