Valuation of Stocks with Price Earning Ratio and Factors Affecting them on the Indonesia Stock Exchange (Basic Materials Sector Company Indexed LQ 45)
Journal Title: International Journal of Multidisciplinary Research and Analysis - Year 2022, Vol 5, Issue 11
Abstract
This research is about the valuation of stocks with a Price Earning Ratio in basic materials sector companies indexed by LQ 45 listed on the Indonesia Stock Exchange. In addition, this research is also an effort to identify the determining factors of the Price Earning Ratio, because the Price Earning Ratio Assessment has always been the center of attention of investors and market analysts. The samples used in this study were 9 companies using the non probability sampling method, namely Purposive Sampling with an observation period from 2017-2021. Data processing is carried out with the Eviews 12 program with stages of processing (1) descriptive statistics that describe the data used, (2) Panel regression models and the selection of the best models through the Chow, Hausman and Test tests, Lagrange Multiplier test models to produce the best model, (3) Selected models are carried out Classical Assumption Tests with the aim of Based on the selected model, the Radom effect model shows that: return on assets, debt to equity ratio, current ratio simultaneously has a positive and significant effect on the Price Earning Ratio. In partial Return on Asset, the Price Earning Ratio has a positive and significant effect. Meanwhile, the debt equity ratio and Current Ratio to the Price Earning Ratio have a negative and significant effect.
Authors and Affiliations
Wahyu Murti, Yolanda, Agustina Massora, Arni Kurniati, Elly Sulistyo Purnamasari
Keywords
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- EP ID EP712843
- DOI 10.47191/ijmra/v5-i11-26
- Views 88
- Downloads 0
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