Debt to Equity Ratio Dominates Stock Market Valuation in Indonesia
The study looked at factors influencing the price earnings ratio of manufacturing companies on the Indonesia Stock Exchange. They analyzed 98 companies and found that variables like return on equity, growth, and debt to equity ratio affect the price earnings ratio. Return on equity has a positive impact, while expected returns and capitalization rate have a negative impact. Debt to equity ratio is the most influential factor. The study provides valuable information for investors, companies, and the stock market.