The Influence Of Price Earning Ratio, Return On Equity And Dividend Payout Ratio On Company Value

Abstract

Business development is currently growing rapidly and experiencing changes for the better. However, since the covid-19 pandemic hit the world, the economic sector has experienced a serious impact, namely fluctuations in stock prices which also have an impact on company value. One of the impacts is quite large on automotive companies where there is also a decrease in the company's net profit. This study aims to determine the effect of price earning ratio , return on equity  and dividend payout ratio on firm value. The population in this study were 90 of the 18 automotive sub-sector manufacturing sector companies listed on the Indonesia Stock Exchange in 2019-2023. This research is a quantitative study with a sample size of 55 obtained through purposive sampling method. The analysis method used is multiple linear regression analysis with the SPSS 26 tool. The partial results showed that the price earning ratio and return on equity  variables had a significant positive effect on firm value, while the dividend payout ratio variable had no effect and was not significant to firm value. Simultaneously, the price earning ratio, return on equity and dividend

KEYWORDS: dividend payout ratio , firm value, price earning ratio, return on equity