AVLV Avantis U.S. Large Cap Value ETF

Avantis U.S. Large Cap Value ETF (AVLV) currently reports 265 stock positions (subject to change), placing it in the widely spread range by holdings breadth. The top line-up is MU (5.67%), AMZN (3.16%), AAPL (3.06%), with MU as the largest single weight at 5.67%. Together, the top three holdings account for 11.89%, which points to a relatively flat weight distribution where no single cluster of names dominates outcomes. The weight distribution suggests a portfolio designed to capture thematic upside while avoiding excessive dependence on any single name outside the largest positions.

Assessing the quality of returns on invested capital, ROIC is 30.43%, WACC is 8.54%, and the economic spread is 21.89%. On balance, the portfolio's businesses are clearing their capital cost hurdle with room to spare. Supporting metrics show ROE at 32.29% and ROA at 9.75%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

The portfolio's current market valuation reflects trailing P/E of 19.66, forward P/E of 14.32, PEG of 3.02. The trailing-to-forward compression is present but not extreme — consistent with a portfolio where earnings are expected to grow at a steady rather than exceptional pace. Growth-adjusted valuation is stretched here — the multiple implies either above-consensus growth or a willingness to pay a premium for quality. The current ratio of 1.58 is in an acceptable range, reflecting reasonable short-term financial health. Across multiples and liquidity, the portfolio is priced in a way that reflects current expectations reasonably well — leaving limited room for error, but also limited near-term downside from valuation compression alone.

Looking at margins from gross to free cash flow, gross margin sits at 44.32%, operating margin at 23.07%, and free cash flow margin at 15.19%. Gross margins are constructive — not exceptional, but indicative of businesses with reasonable unit economics. At this level, operating margins reflect businesses that are scaling with discipline without dramatic cost pressure. The portfolio's cash conversion is solid — a sign that operating profits are translating into real liquidity at the fund level. Together, these margins describe a portfolio where business quality varies — and where macro or sector headwinds could disproportionately impact the weaker-margin holdings.

Projected 12-month EPS growth of 37.3% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Zooming out from the valuation discussion, TTM revenue growth of 20.51% pointing to sustained and broad-based revenue growth within the basket, while the estimated 12-month price change of 11.94%, where target prices point to mid-range appreciation potential from current levels. Anchoring to reported revenues provides discipline; analyst price targets add context about how the market currently values that operating reality. The path to realizing analyst-implied returns runs through revenue execution, margin stability, and a macro environment that doesn't undermine either. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The quantitative profile, taken as a whole, is above average on virtually every dimension that matters for long-term return generation.

This assessment reflects quantitative metrics only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results.