Stock Prices Soar with ROA, ROE, and EPS Performance Boost!
The study looked at how return on assets, return on equity, and earnings per share affect stock prices in the food and beverage manufacturing sector in Indonesia from 2013 to 2017. The researchers found that all three factors together have a significant impact on stock prices. However, individually, only earnings per share has a direct effect on stock prices. This means that investors can use these financial ratios to assess the potential profitability of investing in certain stocks.