THE ANALYSIS OF THE EFFECT OF NET PROFIT MARGIN, DEBT TO EQUITY RATIO AND EARNINGS PER SHARE ON STOCK PRICES

Abstract

This research aims to determine the influence of NPM, DER, and EPS on share prices of manufacturing companies in the food and beverage sector partially and simultaneously. This research was conducted on 8 companies from 2016 to 2020. The method used was the purposive sampling method. The research findings partially show that NPM, DER, and EPS have a positive and significant effect on stock prices, while simultaneously show that NPM, DER, and EPS have a positive and significant effect simultaneously or together on stock prices. The coefficient of determination value is 65.3%, while the remaining 34.7% is explained by other variables not studied such as interest rates, ROA, ROE or inflation. The difference in this research lies in the research object, research time, measurements. instruments, literature used, theories used and research results. This research is expected to be able to provide benefits in the financial sector of a company and assess profit margins, debt to equity ratios, earnings per share and share prices.