Bank Stock Prices on the Indonesia Stock Exchange: Do Profitability and Valuation Ratios Matter?
DOI:
https://doi.org/10.47841/icorad.v3i2.241Keywords:
Stock Prices, Return on Asset, Return on Equity, Earning Per ShareAbstract
The stock price reflects the value of a company traded in the capital market and represents investors' perspectives on the company's performance and prospects. This study aims to analyze the influence of profitability ratios, specifically Return on Assets (ROA) and Return on Equity (ROE), as well as the valuation ratio, Earning Per Share (EPS), on the stock prices of banking companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2023 period. The study uses data from 35 companies selected through purposive sampling, with data analysis conducted using multiple linear regression. The results indicate that ROA and ROE do not have a significant impact on stock prices, while EPS shows a significant influence.