The Effect of EPS, ROA, DER, and PER on Stock Prices of LQ45 Companies, 2022–2024

Abstract

This study aims to analyze the effect of Earning Per Share (EPS), Return On Asset (ROA), Debt to Equity Ratio (DER), and Price Earning Ratio (PER) on stock prices of companies consistently listed in the LQ45
Index during the 2022–2024 period, both partially and simultaneously. This research employs a quantitative associative approach using secondary data obtained from the Indonesia Stock Exchange (IDX). The sample was determined through purposive sampling, resulting in 24 companies consistently listed in the LQ45 Index for three consecutive years, yielding 72 observations. Data were analyzed using multiple linear regression with the assistance of SPSS version 21, preceded by classical
assumption tests (normality, multicollinearity, heteroscedasticity, and autocorrelation). The results show that, partially, EPS has a positive and significant effect on stock prices (t = 15.993; sig. = 0.000), while ROA (sig. = 0.279), DER (sig. = 0.345), and PER (sig. = 0.609) show no significant effect. Simultaneously, EPS, ROA, DER, and PER significantly affect stock prices (F = 68.861; sig. = 0.000) with a
coefficient of determination (R²) of 0.804, indicating that 80.4% of stock price variation can be explained by these four variables. These findings confirm that EPS is the most dominant fundamental signal responded to by investors in the Indonesian capital market during the postpandemic
recovery period