Communication Services Select Sector SPDR Fund (XLC) Valuation

NYSE Arca: XLCP/E, earnings yield and other ratios of the holdings combined.

XLC valuation today

Holdings combined · company data as of Oct 26, 2026
P/E (TTM)
19.3
trailing earnings
Forward P/E
14.1
analyst estimates
Price / sales
2.37
Price / book
3.37
EV / EBITDA
11.6
Earnings yield
5.17%
inverse of P/E
Dividend yield
1.26%
of the holdings
Return on equity
17.4%
combined
Net margin
12.2%
combined
Beta
1.11
weighted, vs S&P 500

XLC valuation vs other stock ETFs

P/E (TTM)Forward P/E
XLC valuation compared with other stock ETFs
ETFP/EFwd P/EP/SP/BDiv. yieldROENet marginLoss-makers
XLC19.314.12.373.371.26%17.4%12.2%10.1%
SPY25.919.93.675.471.08%21.1%14.2%1.9%
QQQ34.223.45.939.270.58%27.1%17.4%6.9%
DIA20.918.43.165.521.55%26.4%15.1%0.0%
VTI28.219.43.315.001.07%17.7%11.8%4.6%
IWMn/m13.91.252.031.38%−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.

XLC valuation by sector

XLC valuation by sector
SectorWeightP/EFwd P/EP/SP/BDiv. yieldROE
Communication Services100.1%19.314.12.373.371.26%17.4%

XLC earnings yield vs bond yields

XLC earnings yield (forward)
7.11%
XLC earnings yield (trailing)
5.17%
XLC dividend yield
1.26%
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 XLC weight splits by P/E

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

XLC largest holdings: valuation

XLC largest holdings valuation
SymbolCompanyWeightP/EFwd P/EP/SDiv. yieldShare of earnings
METAMeta Platforms, Inc.22.43%26.722.17.90.30%16.31%
GOOGLAlphabet Inc.12.31%17.122.89.30.26%13.99%
GOOGAlphabet Inc.9.96%16.921.89.20.26%11.45%
DISThe Walt Disney Company5.12%22.813.81.91.36%4.36%
TTWOTake-Two Interactive Software, Inc.4.62%—28.25.7—−0.76%
CMCSAComcast Corporation4.61%7.15.90.66.03%12.67%
NFLXNetflix, Inc.4.36%22.218.76.1—3.82%
VZVerizon Communications Inc.4.29%11.78.71.36.32%7.15%
TMUST-Mobile US, Inc.4.11%16.611.71.92.94%4.81%
APPAppLovin Corporation4.08%20.515.413.1—3.87%
TAT&T Inc.4.06%7.79.91.34.74%10.19%
LYVLive Nation Entertainment, Inc.3.70%—119.01.5—−0.47%
OMCOmnicom Group Inc.3.21%212.07.41.03.97%0.29%
RDDTReddit, Inc.2.82%36.323.210.8—1.51%
FOXAFox Corporation1.82%16.711.11.60.90%2.11%
ECHOEchoStar Corporation1.78%—4.71.7—−5.51%
CHTRCharter Communications, Inc.1.61%2.92.50.3—10.94%
NWSANews Corporation1.51%29.222.01.80.67%1.01%
TKOTKO Group Holdings, Inc.1.50%61.448.86.31.80%0.47%
FOXFox Corporation1.09%14.99.91.41.01%1.42%
PSKYParamount Skydance Corporation0.59%—————
NWSNews Corporation0.56%31.924.42.00.61%0.34%

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 XLC valuation

Adding up its 21 holdings with company data, XLC trades at 19.3 times trailing earnings and 14.1 times analysts' forward estimates, with a price-to-book ratio of 3.37 and a dividend yield of 1.26%. Its earnings yield of 5.17% is 0.16 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 75.9% of the fund and earn 77.7% of its combined profit. Companies that lost money over the past year are 10.1% 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 99.4% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

Related: XLC chart, XLC performance, XLC holdings, XLC dividends.

XLC valuation FAQ

What is the P/E ratio of XLC?

Based on its holdings, XLC has a trailing P/E of 19.3 and a forward P/E of 14.1 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of XLC?

The trailing earnings yield is 5.17% (1 ÷ P/E) and the forward earnings yield 7.11%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is XLC more expensive than the S&P 500?

XLC trades at 19.3 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 14.1 and 19.9.

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

The holdings of XLC trade at 3.37 times book value, with a combined return on equity of 17.4%.