Abstract
This research aims to determine the influence of return on assets, return on equity, and net profit margin against stock valuation reflected with the price earning ratio and its impact on the price to book value of retail trade companies listed on the Indonesia Stock Exchange period 2009-2018. The method used in this research is a descriptive method of analysis with a quantitative approach. The type of data used in this study is secondary data. The population in this research is a trade retail company listed on the Indonesia Stock Exchange period 2009-2018, consisting of 31 retail trade companies. Sampling technique used in this research is purposive sampling technique, with certain predefined criteria, which obtained 11 trade retail companies that meet the criteria. The analytical technique that will be used in this study is a double linear regression analysis technique that expanded by a method of pathway analysis to obtain a thorough picture of the relationship between one variable and another variable. The results found that a partial return on asset variable, return on equity, and net profit margin had a significant influence on the price earning ratio, and the price earning ratio also had a significant influence on price to book value.
Highlights
As a matter of fact, it is known that the world market has been experiencing a recession
In this research the researched object is the profitability that is procated using return on asset (ROA), Return on equity (ROE) and net profit margin (NPM), and the effect on the valuation of the stock price and its impact on the value of the company in the retail trade listed on the Indonesia Stock Exchange period 2009-2018 will be analyzed
The Data required from each sample in the form of information is related to return on asset (ROA), Return on equity (ROE) and net profit margin (NPM), stock valuation and company value
Summary
As a matter of fact, it is known that the world market has been experiencing a recession It all started from the Subprime Mortgage crisis that took place in the United States. Which means that it is the change of regulation that gives permission to lend money to those who do not fit in a decent list/credit score. Someone with a bad credit score can still get a loan from the bank with higher interest rate Ownership credits with this interest are known to the public as Subprime Mortgage. With no paying for MORTGAGE installments by the homeowners, the interest payment of bonds has become hampered, which results the value of the letter of the debt becomes a fall (www.qmfinancial.com)
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