Analysis of Financial Ratios to Stock Prices

(Case Studies in Banking on The Indonesian stock Exchange)

Abstract

This study aims to determine the effect of Return On Asset (ROA), Net Profit Margin (NPM), Earning Per Share (EPS) on share prices partially or simultaneously in banking companies listed on the Indonesia Stock Exchange for the period 2012-2016. The independent variables in this study are Return On Asset (ROA), Net Profit Margin (NPM), Earning Per Share (EPS). While the dependent variable in this study is the stock price.

Sampling was done by purposive sampling method, with the number of samples used as many as 7 (seven) companies with a sample of 35 observational data. The research method used is a quantitative method with descriptive and verification approaches. The data analysis method used is statistical analysis using SPSS 20 software.

The results show that partially there is a significant effect of Return on Assets (ROA) and Net Profit Margin (NPM) on stock prices, but there is no significant effect of Earning Per Share (EPS) on stock prices.