High Price Earning Ratios Drive Banking Companies' Stock Prices Skyward
The study looked at how Price Earning Ratio (PER) affects market performance in banking companies on the Indonesia Stock Exchange. They found that a high PER value can attract investors to buy shares, leading to an increase in stock prices. This suggests that PER can influence stock prices more than Earnings Per Share (EPS). In conclusion, companies with a higher PER tend to have higher investor confidence in their future growth, which can drive up stock prices.