Price earnings (PE) multiples is generally regarded as the most used and
popular multiples in ratio valuation. PE multiples is also remained at the center
attention of security analysts and investors ever since the origin of Gordon Growth
Dividend Discount Model. This paper aims to test three factors that explains variations
in PE multiples which are return on equity, dividend payout ratio, and total asset
growth. Further, this paper also examines the ability of PE multiples to predict stock
returns. The sample will be taken from Indonesian Liquidity 45 stocks that is listed 10
consecutive times in period 2010-2014. There are 17 companies are selected to be used
as sample. This study uses multiple regression analysis and simple linear regression
analysis. The research results revealed that dividend payout ratio and return on equity
found to be significant towards PE multiples. Further, the annual PE multiples do not
prove and give any direction of future stock returns.

Creator(s)

• (34412042) BILLY KRESNO HANDOJO

Contributor(s)

• Liem Pei Fun, S.E., M.Com. → Advisor 1
• Tessa Vanina Soetanto → Examination Committee 1

Publisher

Universitas Kristen Petra; 2016

Language

English

Category

s1 – Undergraduate Thesis

Sub Category

Skripsi/Undergraduate Thesis

Source

Undergraduate Thesis No. 34010259/MAN/2016; Billy Kresno Handojo (34412042)

Subject(s)

• RATE OF RETURN
• STOCKS-PRICES
• STOCKS

File(s)

• jiunkpe-is-s1-2016-34412042-38833-stock_return-cover.pdf
• jiunkpe-is-s1-2016-34412042-38833-stock_return-abstract_toc.pdf
• jiunkpe-is-s1-2016-34412042-38833-stock_return-references.pdf