The Influence of Stock Price Valuation on Stock Returns on the Indonesian Stock Exchange

Investors will place funds in companies that have profitable prospects, namely issuers that can provide the stock returns that investors want. Indicators for analyzing stock returns can use financial ratio analysis. This research uses the Price to Book Value (PBV) and Price to Earning Ratio (PER) ratios because they are often used by investors in conducting fundamental analysis to determine which shares are being traded at low prices (undervalued). This research was conducted on companies on the Indonesia Stock Exchange using secondary data accessed via the website www.idx.co.id. Based on purposive sampling criteria, it can be seen that the sample in this study was 29 companies, and there were 145 observations. The data collection method used in this research is the documentation method. The analytical method used in this research is multiple linear regression analysis. The research results show that the PBV variable has a significant positive effect on stock returns, and the Price to Earning Ratio variable has a significant positive effect on stock returns