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XLCCommunication Services Select Sector SPDR Fund
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  1. Home
  2. Financial Ratios

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  3. XLC
  4. Financial Ratios

Communication Services Select Sector SPDR Fund (XLC) Financial Ratios

Latest Ratios: P/E Ratio N/A · EV/EBITDA N/A · ROE N/A. (2026–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

XLC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTM
Market Cap—
Enterprise Value—
P/E Ratio →—
P/S Ratio—
P/B Ratio—
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P/OCF—

P/E links to full P/E history page with 30-year chart

XLC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

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EV / Revenue—
EV / EBITDA—
EV / EBIT—
EV / FCF—

XLC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

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Operating Margin—
Net Profit Margin—

Return on Capital

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ROE—
ROA—
ROIC—
ROCE—

XLC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

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Debt / Equity—
Debt / EBITDA—
Net Debt / Equity—
Net Debt / EBITDA—
Debt / FCF—
Interest Coverage—

XLC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

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Current Ratio—
Quick Ratio—
Cash Ratio—
Asset Turnover—
Inventory Turnover—
Days Sales Outstanding—

XLC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

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Dividend Yield—
Payout Ratio—

Total Shareholder Return Metrics

MetricTTM
Earnings Yield—
FCF Yield—
Buyback Yield—
Total Shareholder Yield—
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Key Metrics

Growth RegimeMixed
ProfitabilityStrong
Balance SheetHealthy
Cash FlowRobust
Top Statement Risk

Regulatory Antitrust Overhang

Valuation Premium Reflects Growth Skew

As reported in institutional fund data, XLC's valuation multiples are heavily influenced by the high-growth interactive media constituents, which command a significant premium compared to the stagnant, yield-oriented telecommunications holdings that anchor the lower end of the fund's overall market capitalization and performance profile.

The fund's aggregate P/E ratio appears to be a composite of two distinct valuation regimes, where the market assigns high multiples to digital advertising platforms based on expected margin expansion, while simultaneously discounting the capital-intensive legacy media and telecom components. Investors should monitor whether this valuation spread narrows as the entertainment segment shifts toward profitability, potentially re-rating the fund's overall multiple.

Margin Divergence Across Sector Constituents

Based on underlying constituent financial statements, XLC's profitability is structurally bifurcated, with the high operating margins of digital advertising giants effectively masking the lower-margin, capital-intensive nature of the legacy telecommunications and traditional media firms that comprise the remainder of the fund's total asset allocation.

The fund's earning power is primarily driven by the scalability of its interactive media holdings, which exhibit superior operating margins compared to the rest of the sector. Analysts should interpret the aggregate margin as a weighted average that may be sensitive to shifts in ad-spend cycles, rather than a reflection of uniform operational efficiency across all holdings.

Capital Efficiency Driven by Tech

According to institutional portfolio analysis, XLC's return on invested capital is heavily skewed by the asset-light models of its largest interactive media holdings, which significantly outperform the capital-intensive infrastructure requirements of the telecommunications and legacy media companies that represent a substantial portion of the fund's total weight.

The trend in ROIC appears to be a function of the fund's concentration in digital platforms that require minimal incremental capital to scale. This suggests that the fund's ability to compound returns is highly dependent on the continued dominance of these high-margin tech entities, rather than the performance of the broader communication services sector.

Working Capital Dynamics Vary Widely

As inferred from sector-wide operational data, XLC's efficiency metrics are distorted by the disparate business models of its constituents, ranging from the rapid cash conversion cycles of digital advertising platforms to the heavy, long-term capital investment cycles inherent in the telecommunications and traditional media segments.

The fund's aggregate efficiency is not a meaningful metric for any single company but rather an indicator of the portfolio's structural balance between cash-generative tech and capital-heavy infrastructure. Investors should note that the cash conversion cycle is likely dominated by the interactive media segment, which provides a liquidity buffer for the fund's more capital-intensive holdings.

Misapplication of Aggregate P/E Ratios

The most commonly misapplied metric for XLC is the aggregate P/E ratio, which obscures the fundamental divergence between the high-growth, low-debt interactive media segment and the mature, high-debt telecommunications segment, leading to potentially flawed conclusions regarding the fund's overall valuation and risk profile.

Analysts should instead utilize a sum-of-the-parts approach or normalize for the disparate capital structures of the underlying holdings to gain a clearer picture of the fund's true earning power. Relying on a single headline multiple fails to account for the distinct regulatory and operational risks that impact the tech and telecom components differently.

Download Financial Ratios Data

Includes 30+ ratios · 0 years · Updated daily

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XLC — Frequently Asked Questions

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Is XLC stock overvalued?

Based on historical data, Communication Services Select Sector SPDR Fund is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.