THE EFFECT OF EARNING PER SHARE AND RETURN ON EQUITY ON PRICE TO BOOK VALUE IN COAL MINING SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

This study aims to determine and analyze the effect of EPS and ROE on PBV. This study uses a purposive sampling method with a total of 11 samples of financial reports of coal mining companies listed on the Indonesia Stock Exchange for the period 2020 to 2023. The data collection method uses documentation. The analysis technique used is multiple regression analysis. The results of this study indicate that (1) Earning Per Share has a significant positive effect on Price To Book Value. This is because Price To Book Value increases, so investors will make purchases of shares which will increase the purchase price of shares. (2) Return On Equity has an effect and is significant on Price To Book Value. This is because Return On Equity has increased in terms of profit on share capital, making investors interested and making purchases of shares causing the share price to increase, (3) Earning Per Share and Return On Equity have an effect and are significant on Price To Book Value. Increasing share prices accompanied by good management can increase purchases of shares, thereby contributing to Price To Book Value.