The Effect of Profitability and Market Ratios on Stock Prices (A Case Study of Food & Beverage Companies Listed on the Indonesia Stock Exchange in 2019-2024)

Abstract

This study aims to examine the influence of profitability and market ratios on stock prices, using a case study of food and beverage companies listed on the Indonesia Stock Exchange during the period 2019–2024. A quantitative research approach was employed. The study population consisted of 955 companies, from which 28 were selected as samples using purposive sampling. Data were analyzed using descriptive statistics, multiple linear regression, the coefficient of determination (R²), F-test, and t-test, with the assistance of SPSS version 16. The empirical findings reveal that, partially, Return on Assets (ROA) has a negative impact on stock prices, whereas Return on Equity (ROE) and Earnings Per Share (EPS) have a positive impact. Simultaneous testing indicates that ROA, ROE, and EPS collectively exert a positive influence on stock prices. These results suggest that both profitability and market performance indicators play a significant role in determining stock price movements within the food and beverage sector