Price Earnings Ratio Key Factor in Food Sector Stock Returns
The study looked at how Earnings Per Share (EPS) and Price Earnings Ratio (PER) affect stock returns in the food and beverages sector from 2005 to 2008. They analyzed data from 13 companies in Indonesia. The researchers found that only Price Earnings Ratio had a partial impact on stock returns, but both EPS and PER together had a significant influence. This suggests that investors during this period considered both EPS and PER when buying shares.