Abstract

As a prospective investor in the capital market, the right strategy should be known and applied to choose shares in the right company. One thing that must be understood is the behavior of the company's fundamental ratios such as return on equity (ROE) and price earnings ratio (PER). The purpose of this study was to determine the effect of ROE on PER, for property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period 2010-2016. Sampling is done by purposive sampling technique, totaling 24 property companies. The source of the data used comes from the company's financial statements. From the results obtained it can be concluded that ROE can predict PER on property companies on the IDX for the period 2010-2016.

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