The Effect of Return on Assets, Return on Equity and Net Profit Margin on Stock Prices with Price Earning Ratio as an Intervening Variable in the Properties and Real Estate Sector Listed on the IDX in 2021-2023

Abstract

The Indonesian capital market has experienced significant development and plays an important role in supporting the national economy, especially through stock instruments that reflect company performance. This study aims to analyze the effect of Return on Asset (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) on stock prices with Price Earning Ratio (PER) as an intervening variable in Properties & Real Estate sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2021–2023. This study uses a quantitative approach with an associative research type. The data used are secondary data obtained through documentation of the company's financial statements. The study population was 92 companies with a sample of 74 companies that had complete financial data during the study period. The results of the study show that ROA, ROE, and NPM have a significant effect both simultaneously and partially on stock prices through PER. The multiple correlation coefficient test shows a value of 1,000, which means a very strong relationship between variables. The coefficient of determination (R²) value of 1,000 indicates that 100% of the stock price variable can be explained by ROA, ROE, and NPM through PER. The F-test and t-test show significance at the 95% confidence level. This finding indicates the importance of profitability indicators in investment decision making in the property and real estate sector