THE EFFECT OF RETURN ON EQUITY (ROE), DEBT TO ASSET RATIO (DAR) AND GROWTH TO PRICE EARNING RATIO (PER) IN FOOD AND SUB-SECTOR MANUFACTURING COMPANIES BEVERAGES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) 2017-2021

Abstract

Competition in the business world today has resulted in the economy in Indonesia growing and increasing rapidly. As a result, companies must compete with other companies by developing for market expansion so that these companies can maintain the viability of the company and increase company value. The purpose of this study was to determine the effect of Return On Equity (ROE), Debt to Asset Ratio (DAR), and Growth on the Price Earning Ratio (PER) and determine the effect of Return On Equity (ROE), Debt to Asset Ratio (DAR), and Growth simultaneously affect the Price Earning Ratio (PER). Population in this research is 26 companies using a sample of 18 companies based on the purposive sampling method. This research is a quantitative research with multiple linear regression analysis method. Based on the results of the study, it was found that there was a negative and significant effect between the ROE variable on PER that is 0,001 < 0,05, there was a positive and significant effect between the DAR variable on PER that is 0,042 < 0,05, but there was no and insignificant effect between the Growth variable and the PER that is 0,0769 > 0,05. Through the significance value for the effect of ROE, DAR and Growth simultaneously on PER is 0.002 < 0.05 (α). This proves that Ho is rejected and Ha is accepted. This means that there is an effect of ROE, DAR and Growth simultaneously on PER. The value of the coefficient of determination obtained is 0.235, which means that the magnitude of the effect of ROE, DAR and Growth on PER is 23.5%, the remaining 76.5% is influenced by other factors.