THE EFFECT OF EARNINGS PER SHARE (EPS) AND PRICE

TO BOOK VALUE (PBV) ON THE SHARE PRICE OF PT

MAYORA INDAH TBK FOR THE PERIOD 2015-2024

Ariel Luzardi Musa1, Dika Mahendra2, Muhammad Rizqi3, Thoriq

Fathurrahman Anharie4
1234
Pamulang University
Management Study Program
Faculty of Economics and Business
ArielGolden@[Link]
Abstract

This study aims to analyze the effect of Earning Per Share (EPS) and Price
to Book Value (PBV) on the share price of PT Mayora Indah Tbk during the
period 2015–2024. The study uses a quantitative approach with secondary
data obtained from the company's annual financial reports and stock price
data published by the Indonesia Stock Exchange. The analysis methods us
ed include classical assumption tests, multiple linear regression, t-tests, F-
tests, and the coefficient of determination. The results show that EPS and
PBV do not have a significant partial or simultaneous effect on the compa
ny's stock price. A low coefficient of determination indicates that these
two fundamental variables only explain a small portion of stock price
variation, while the majority is influenced by external factors such as
market conditions, investor sentiment, and macroeconomic dynamics.
This finding confirms that PT Mayora Indah Tbk's stock price movements
are more influenced by factors outside the company's fundamentals.

Keywords: EPS, PBV, stock price, Mayora Indah, fundamental analysis

Introduction
The capital market plays an important role in the modern economy
because it serves as a means of raising long-term funds for companies
while providing investment alternatives for the public. Stock price
movements in the capital market reflect the value of a company based on
available information, both fundamental and non-fundamental. Therefore,
understanding the factors that affect stock prices is important for
investors, company management, and parties involved in financial
decision-making.
PT Mayora Indah Tbk is a company engaged in the Fast Moving
Consumer Goods (FMCG) industry and is known as a national and
international producer of processed foods and beverages. Despite its
stable reputation and strong sales performance, Mayora's share price
between 2015 and 2024 showed a pattern of fluctuation that did not
always correspond to changes in the company's fundamental
performance. This phenomenon raises questions about the extent to
which the company's fundamental factors influence its share price in the
market.
 Two fundamental indicators that are often used to assess the health
and performance of a company are Earnings Per Share (EPS) and Price to
Book Value (PBV). EPS describes a company's ability to generate earnings
per share, while PBV shows the market's assessment of the company's
book value. In theory, an increase in EPS and PBV should increase investor
interest in buying the company's shares, which will ultimately drive up the
share price. However, in practice, this is not always the case, as stock
prices can also be influenced by external factors such as macroeconomic
conditions, interest rates, inflation, market sentiment, and global
dynamics.
Given the misalignment between fundamental movements and the
share price of PT Mayora Indah Tbk during the research period, it is
important to conduct an empirical test to determine whether EPS and PBV
still have a significant influence on the company's share price. This study
aims to provide a deeper understanding of the relevant fundamental
factors and evaluate whether these two variables are reliable indicators
for investors in assessing Mayora shares.
Therefore, this study is expected to contribute to the academic
literature on fundamental analysis and provide useful information for
investors and capital market practitioners in making more rational and
data-driven investment decisions.

Theoretical Framework
Earning Per share
According to Nor Hadi (2015), Earnings per Share (EPS) is the ratio
between net income after tax in the fiscal year and the number of shares
issued by the company. According to Larson (in Sudirman, 2015),
“Earnings per share, also known as net income per share, is the amount of
profit earned per share of common stock outstanding of a company.”
(Earnings per share is also known as net income per share, which is the
amount of profit earned per share of common stock of a company).
According to Hantono (2018), Earnings Per Share is a per-share
ratio, also known as the book value ratio, which is used to measure the
success of management in generating profits for shareholders. In addition,
according to E. Santoso (2019), Earnings Per Share is part of the
company's net income allocated to each outstanding common share.
According to Fahmi (2012), Earnings per Share (EPS) is a form of
profit distribution given to shareholders for each share they own.
However, in practice, not all profits can be distributed, as some of them
are retained. Meanwhile, according to Hanafi and Halim (2015), Earnings
Per Share (EPS) is the financial ratio most widely used by stock investors
in analyzing a company's ability to generate profits based on the shares it
owns.
Based on the expert opinion above, it can be concluded that Earning
Per Share (EPS) is a financial ratio that measures the net profit per share
generated by a company for each common share outstanding. This ratio
serves as an important indicator for assessing the success of
management in creating profits for shareholders and is one of the most
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widely used analysis tools by investors in evaluating company

performance.

Price to book Value

According to (Brigham & Houston, 2018), PBV is a ratio that shows
how much a company is able to create relative corporate value through
the amount of capital invested. PBV can be calculated by comparing the
share price with the book value per share. The higher the PBV, the higher
the level of shareholder welfare because this makes investors believe in
the company's good prospects in the future.
According to Husnan. S and Pudjiastuti (2006), the Price to Book
Value Ratio (PBV) is the ratio between the market price and the book
value of a stock. For companies with good performance, this ratio is
generally above one, indicating that the market value of the stock is
greater than its book value. The higher the PBV ratio, the higher the
investor's assessment of the company compared to the funds invested in
the company.
According to Kurniawan (2020), PBV is an indicator that compares
stock prices with BVPS. The lower the PBV, the cheaper the stock price.
Conversely, the higher the PBV, the more expensive the stock price.
Based on the opinions of the experts above, it can be concluded
that Price to Book Value (PBV) is a ratio that compares the market price of
a stock with its book value, which is calculated by comparing the stock
price to the book value per share (BVPS). In general, a PBV above 1
indicates that the market values the company higher than its book value,
reflecting investor optimism about the company's growth prospects and
ability to create added value above the invested capital. Conversely, a low
PBV may indicate that the stock is relatively cheap, but it may also signal
a lack of market confidence in the company's future performance or
prospects.

Stock Price
According to Darmadji and Fakhrudin (2012), the stock price is the
price that occurs on the exchange at a certain time. Stock prices can
change up or down in a very short time. These changes can occur in
minutes or even seconds. This is possible because it depends on the
balance between supply and demand between buyers and sellers of
shares.
According to Brigham and Houston (2014), stock prices determine
shareholder wealth. Maximizing shareholder wealth means maximizing
the company's stock price. The stock price at a given time will depend on
the future cash flows expected to be received by the “average investor” if
they purchase the stock.
According to Hadi (2015), the stock price is basically the current
stock price, and when trading closes, the stock price is the closing price.
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Previous Research
Previous research conducted by Putri, Suryono, and Munandar
(2025) shows that EPS has a significant effect on stock prices in banking
companies. These results indicate that changes in earnings per share
(EPS) are quite sensitive to investor response, so that increases or
decreases in EPS are directly reflected in changes in stock prices.
However, these findings are not entirely consistent with the results of
research conducted on PT Mayora Indah Tbk. Although EPS changed every
year, this variable did not have a significant effect on stock prices during
the 2015–2024 period. This condition shows that investors' perceptions of
fundamentals in the consumer goods sector differ from those in the
banking sector, which tends to be more stable and heavily influenced by
financial reports.
Different results are also seen when compared to research by
Zaman, Ludvy, and Nuryani (2023), who studied large companies in the
financial sector. That study concluded that EPS has a significant partial
effect on stock prices and is an important indicator for investors in
assessing company performance. These findings contradict the study on
PT Mayora Indah Tbk, where EPS did not contribute significantly to
explaining stock price movements. This difference may be due to different
industry characteristics and lower market sensitivity to changes in
earnings for food and beverage processing companies.
Meanwhile, research conducted by Labiba, Rasmini, and Kostin
(2021) shows that EPS is still a strong variable in influencing stock prices
in the mining sector. The study found that changes in EPS have a
significant impact on investor valuation, thereby affecting stock price
dynamics in the market. However, the findings of this mini-study differ
again because the EPS of PT Mayora Indah Tbk does not show a significant
relationship. This indicates that investor response in the consumer goods
sector does not always follow traditional fundamental patterns, but is
more influenced by business expansion, macroeconomic conditions, and
industry sentiment.
In the context of PBV, several previous studies, such as those by
Nurhayati (2023) and Dzakwan, Fariantin, and Setiawati (2023), show that
PBV has a significant effect on stock prices in a number of sectors. PBV is
often considered a measure of market valuation that reflects investors'
perceptions of a company's fair value. However, the results of a mini-
research study on PT Mayora Indah Tbk show that PBV did not have a
significant effect during the research period. This discrepancy may be
influenced by stock price fluctuation patterns that are more driven by
external factors, such as global economic conditions, changes in raw
material costs, and increasingly fierce industry competition.
In addition, changes in the consumer goods industry over the past
few years have led to differences in research results. During this period,
companies in the FMCG sector faced major challenges such as rising
production costs, changes in consumption patterns, and increasingly
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fierce competition from imported products and new brands. This situation
has prompted investors to focus more on long-term prospects, product
innovation, and market expansion rather than fundamental indicators
such as EPS and PBV directly. This can be seen from the relatively volatile
price movements of Mayora's shares, despite their relatively stable
fundamental valuations.

Therefore, previous studies generally show that EPS and PBV tend to
have a significant effect on stock prices in various sectors. However, the
results of this mini-study provide an exception for PT Mayora Indah Tbk
during the 2015–2024 period. This finding reinforces the understanding
that stock prices are not only influenced by fundamental factors, but also
by external conditions, industry sentiment, and market competition
dynamics, which are often more dominant.

Framework

Earning Per
Share (X1) H1
Stock Price
(Y)
H2
Price to Book
Value (X2)
H3

The Relationship Between Earnings per Share and Price-to-Book

Ratio on Stock Prices
This study discusses the relationship between Earnings per Share
(EPS) and Price to Book Value (PBV) on stock prices as part of
fundamental analysis used to assess company performance and
prospects. The purpose of this study is to determine the relationship
between Earnings per Share (EPS) and Price to Book Value (PBV) on stock
prices as part of fundamental analysis used to assess a company's
performance and prospects. Both indicators are theoretically closely
related to stock price movements because they are considered to reflect
profitability, company value, and market expectations for future growth.
EPS describes a company's ability to generate net income for each
share outstanding. This ratio is one of the main indicators used by
investors to assess a company's profitability and the effectiveness of its
management in managing resources. Companies with high EPS are
usually considered more stable and have good financial performance, as
they can demonstrate their ability to generate consistent profits. From a
signaling theory perspective, an increase in EPS is considered a positive
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signal to the market, which can drive investor interest and increase stock
prices through increased demand. Thus, EPS not only describes current
financial performance, but also provides an indication of future profit
expectations, which ultimately contributes to the formation of stock prices
in the capital market.

PBV shows the extent to which the market assesses a company's

book value, which is the ratio between the market price of a share and its
book value per share. This ratio reflects how investors appreciate the
value of a company's assets and its growth prospects. A high PBV
indicates that investors believe the company has good prospects, strong
asset quality, effective management, and promising growth potential.
Conversely, a low PBV may indicate that the market perceives the
company to be facing risks or undervalued. Therefore, PBV is an important
indicator in valuation analysis, helping investors assess whether a stock is
fairly priced by the market and whether it is suitable as an investment
instrument.
Thus, EPS and PBV have an important relationship with stock prices
because they represent two different but complementary fundamental
dimensions. EPS highlights financial performance in terms of profitability,
while PBV highlights the market's perception of the value and quality of a
company's assets. The combination of these two indicators provides a
comprehensive picture of a company's financial health and intrinsic value.
When EPS and PBV are at favorable levels, the market tends to respond
positively by increasing stock prices. In other words, EPS and PBV serve as
factors that can influence stock prices because they form the basis for
investment decisions made by market participants.

Method
This study uses a quantitative approach with a correlational
descriptive research design, which aims to determine the relationship and
influence between fundamental company variables, namely Earning Per
Share (EPS) and Price to Book Value (PBV), on stock prices. According to
Sugiyono (2020), quantitative research is a research method with a
systematic, planned, and structured design, based on the philosophy of
positivism, and aims to test theories through variable measurement and
statistical analysis. This approach was chosen because it is in line with the
research objectives, namely to capture and analyze the relationship
between variables objectively, measurably, and based on numbers.
The data used in this study was obtained from the annual financial
reports of PT Mayora Indah Tbk and year-end closing stock prices
published by the Indonesia Stock Exchange (IDX). All data collected was
numerical and could be processed using Statistical Package for the Social
Sciences (SPSS) software. This study was conducted on PT Mayora Indah
Tbk with a data coverage of 10 years, namely the period from 2015 to
2024. EPS and PBV data were obtained from the company's annual
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financial reports, while year-end stock price data was accessed through
the IDX official website ([Link]) and the company's official
platform.
The research population includes all annual financial reports
published by PT Mayora Indah Tbk. Sample selection uses purposive
sampling, which is a sampling technique based on specific criteria
relevant to the research objectives. The criteria used are: (1) the company
consistently published financial reports during the 2015–2024 period, (2)
EPS and PBV data were available in full in the financial reports, and (3)
there was year-end closing price data for the research period. Based on
these criteria, the research sample consisted of time series data for ten
years.
The independent variables in this study include Earning Per Share
(EPS) as X1 and Price to Book Value (PBV) as X2. Meanwhile, the
dependent variable is stock price (Y). EPS is calculated based on the
division of net income after tax by the number of outstanding shares,
while PBV is calculated from the ratio between stock price and book value
per share. The stock price in this study refers to the year-end closing price
data, which is considered to represent the company's annual market
value.
The data analysis method begins with testing classical assumptions,
including normality, multicollinearity, heteroscedasticity, and
autocorrelation tests to ensure that the regression model used is free
from statistical assumption violations. Once all assumptions are met, the
analysis continues using multiple linear regression to determine the
magnitude of the effect of EPS and PBV on stock prices, both partially and
simultaneously. Hypothesis testing is performed using the t-test to see the
effect of each variable partially, and the F-test to assess the effect of both
simultaneously. In addition, the coefficient of determination (R²) is used to
determine the extent to which the EPS and PBV variables explain the
variation in stock price changes.
Data was collected through documentation methods, namely by
accessing, recording, and processing data obtained from the financial
reports of PT Mayora Indah Tbk and summaries of IDX stock prices
relevant to the research variables. Since all data was sourced from official
publications, this study fully utilized verified secondary data that was
ready for analysis. Using this approach, the study is expected to provide
an empirical description of the relationship between company
fundamentals and stock prices during the period 2015–2024.

Earning Per Share (X1)

Earnings Per Share (EPS) is a financial ratio that shows the portion
of a company's net income allocated to each outstanding common share.
According to Financial Accounting Standards (FAS), EPS is the primary
measure of profitability for shareholders because it directly reflects the
return they receive from their share ownership. A high EPS value is
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generally interpreted as a positive signal about a company's ability to

create value for its owners, which can influence investor sentiment and
stock prices.

Net Profit
Earning Per Share=
Number of Shares Outstanding

Price to Book Value (X2)

Price to Book Value (PBV) is a ratio that compares a company's
market value (as reflected in its share price) with its book value. Book
value represents the total net assets of a company according to its
accounting records. This ratio is used to assess whether a stock is
overvalued or undervalued by the market.

Total Equity
Book Value of Shares=
Number of Shares Outstanding

Stock Price (Y)

According to Darmadji and Fakhrudin (2012), stock prices are prices
that occur on the exchange at a certain time. Stock prices can change up
or down in a very short time. They can change in minutes or even
seconds. This is possible because it depends on the supply and demand
between stock buyers and sellers.
According to Brigham and Houston (2014), stock prices determine
the wealth of shareholders. Maximizing shareholder wealth translates into
maximizing the company's stock price. The stock price at a given time will
depend on the expected future cash flow received by the “average”
investor if the investor buys the stock.

Results

Table 1. PT Mayora Indah Tbk Stock Price Data

YEA STOCK
R PRICE
2015 Rp1,220
2016 Rp1,645
2017 Rp2,020
2018 Rp2,620
2019 Rp2,050
2020 Rp2,710
2021 Rp2,040
2022 Rp2,500
2023 Rp2,490
2024 Rp2,780
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Based on Table 1, the share price of PT Mayora Indah Tbk (MYOR)

shows a significant long-term upward trend with an appreciation of
127.87% from IDR 1,220 in 2015 to IDR 2,780 in 2024. However, this price
movement is not linear and experiences volatility that reflects market
dynamics, with several sharp corrections such as a 21.76% decline in
2019. The price level around IDR 2,000 to IDR 2,100 consistently acted as
strong support, as shown by the price's ability to bounce back at that level
in 2019, 2021, and 2023. Meanwhile, the IDR 2,700 to IDR 2,800 level was
a resistance that was only convincingly broken in 2024. These price
fluctuations are influenced by external factors such as global
macroeconomic conditions and profit-taking, while also reflecting the
issuer's resilience. Overall, MYOR's stock price performance indicates a
positive market response to the company's long-term fundamentals.

Table 2. Earning Per Share PT Mayora Indah Tbk

YEA NET PROFIT NUMBER OF SHARES EPS
R OUTSTANDING
2015 Rp 1,220,020,581,458 RP 894,347,989 Rp 1,364
2016 Rp 1,354,950,312,035 Rp 22,358,699,725 Rp 61
2017 Rp 1,594,441,049,254 Rp 22,358,699,725 Rp 71
2018 Rp 1,716,355,870,266 Rp 22,358,699,725 Rp 77
2019 Rp 1,987,755,412,096 Rp 22,358,699,725 Rp 89
2020 Rp 2,060,631,850,945 Rp 22,358,699,725 Rp 92
2021 Rp 1,186,598,590,767 Rp 22,358,699,725 Rp 53
2022 Rp 1,942,229,752,036 Rp 22,358,699,725 Rp 87
2023 Rp 3,193,816,276,615 Rp 22,358,699,725 Rp 143
2024 Rp 3,000,372,094,158 Rp 22,358,699,725 Rp 134

Based on Table 2, there was significant growth from IDR 1,364 to

IDR 134, followed by a drastic structural change in the number of
outstanding shares in 2016. After normalization with a new share base,
EPS showed a consistent upward trend from IDR 61 (2016) to a peak of
IDR 143 (2023), reflecting an increase in real profitability per share.
Despite experiencing pressure in 2021 with EPS falling to Rp 53 due to the
impact of the pandemic, the company demonstrated resilience with a
rapid recovery in 2022 to Rp 87. The highest achievement in 2023 is in
line with the realization of a net profit of Rp 3.193 trillion, indicating
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optimal operational efficiency amid economic challenges. The stabilization

of EPS at Rp 134 in 2024 indicates the ability to maintain performance
even in fluctuating market conditions. The cumulative growth pattern of
119.7% since 2016 confirms the consistency of the company's
fundamental performance in creating shareholder value. This EPS data
reflects the success of the business expansion strategy and the
effectiveness of management in managing operational scalability. Overall,
the EPS development confirms Mayora's strong position as a consumer
goods issuer with healthy fundamentals and sustainable growth
prospects.

Table 3. Price to Book Value PT Mayora Indah Tbk

YEA STOCK BOOK VALUE PB

R PRICE PERSHARE V
Rp 0.2
2015 Rp 5,808.097062
1,220 1
Rp 5.8
2016 Rp 280.215579
1,645 7
Rp 6.1
2017 Rp 328.925495
2,020 4
Rp 6.8
2018 Rp 382.068036
2,620 6
Rp 4.6
2019 Rp 442.777993
2,050 3
Rp 5.3
2020 Rp 504.120015 Based
2,710 8
on Table 3,
Rp 4.0
we can 2021 Rp 508.081039 see an
2,040 2
Rp 4.3
2022 Rp 574.035800
2,500 6
Rp 3.6
2023 Rp 683.496329
2,490 4
Rp 3.6
2024 Rp 764.911580
2,780 3
interesting evolution in valuation, starting from a very low PBV of 0.21 in
2015, which indicates that the stock was significantly undervalued.
However, there was a dramatic jump to 5.87 in 2016, reflecting changes
in capital structure or market adjustments to the company's fair value.
The 2017-2018 period recorded the highest PBV of 6.14 and 6.86,
respectively, indicating market optimism about Mayora's growth
prospects. The PBV trend then experienced gradual consolidation during
2019-2024 with a range of 3.63-5.38 even though the share price and
book value continued to increase. The gradual decline in PBV from its
peak of 6.86 to 3.63 indicates that book value growth was faster than
share price appreciation. The stabilization of PBV at around 3.6x in the last
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two years reflects valuation maturity, where the market has found the
right equilibrium price. The consistent PBV pattern above 3.5x confirms
Mayora's position as a premium issuer with strong fundamentals
recognized by the market.
EMPIRICAL FINDINGS
Test Result

1. Test Clasical Assumptions

a. Normality Test

Based on the normality test results showing that the sig value of 0.200 is
greater than 0.05, it can be concluded that this data is normally distributed.

b. Heteroscedasticity Test

Based on the results of the heteroscedasticity test above, the significance value
of variable X1 is 0.858 and the significance of variable X2 is 0.329. Therefore, it can
be concluded that variables X1 and X2 do not exhibit heteroscedasticity.

c. Multicollinearity Test
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Based on the results of the multicollinearity test above, the

Tolerance values for variable X1 and variable X2 are 0.313 and the
VIF value is 3.190, so it can be concluded that there is no
multicollinearity between variable X1 and variable X2.

d. Autocorrelation Test

Based on the results of the autocorrelation test above, the DU value is 1.6413,
the DW value is 2.353, and the 4-DU value is 2.3587. Since DU<DW<4-DU, it can
be concluded that variables X1 and X2 do not exhibit autocorrelation.

2. Simple Regression Test

a. EPS (X1) Regarding Stock Prices (Y)

The regression results show a regression coefficient value for EPS of –

0.815 with a significance value of 0.041, which is less than 0.05. This
indicates that EPS has a significant effect on stock prices, but the direction
of the effect is negative. This means that every increase in EPS actually
lowers the stock price by 0.815 units. The R Square value of 0.425
indicates that EPS explains 42.5% of the variation in stock price changes.
The rest is explained by other factors outside the model.
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b. Price to Book Value (X2) Regarding Stock Prices (Y)

Simple regression testing shows that the PBV coefficient value is

123.970 with a significance value of 0.185. Since this value is greater than
0.05, PBV does not have a significant effect on stock prices partially.
Although the coefficient direction is positive, its effect is not strong
enough to predict stock prices. The coefficient of determination of 0.208
indicates that PBV can only explain 20.8% of the variation in stock prices.

3. Multiple Linear Regression

Stock Price = 2770,433 – 1,092(EPS) – 72,821(PBV)

The equation shows that if EPS and PBV are considered constant, the predicted share
price is 2770.433. Each one-unit increase in EPS is estimated to decrease the share price by
1.092 points, while each one-unit increase in PBV is estimated to decrease the share price by
72.821 points. However, both coefficients are not significant, so their effect cannot be stated
with statistical certainty.

4. Coeffisient Test
5. Correlation Coeffisient Test
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Based on the Model Summary output in multiple linear regression, it is

known that the correlation coefficient (R) value is 0.669. This value
describes the level of closeness of the relationship between the
independent variables EPS and PBV and the dependent variable, namely
stock price. An R value of 0.669 indicates that the relationship between
EPS and PBV and stock price is in the moderate to strong category.
a. Test the Coefficient of Determination

Source: SPSS Version 25

It is known that the R Square value of 0.447 explains that 44.7% of stock price
variation can be explained by the EPS and PBV variables. The remaining 55.3% is influenced
by other variables outside the scope of this study.

6. Hypothesis Test
a. T-Test (Partial)

Source: SPSS Version 25

The partial effect of independent variables on dependent variables
is as follows:
a. The T-test result for the EPS variable (X1) obtained a
significant value of 0.125>0.05. Therefore, Ha is rejected and
Ho is accepted, meaning that the EPS variable has no effect
on the share price of PT. Mayora Indah TBK for 2015-2024.
b. The T-test result for the PBV variable (X2) obtained a
significant value of 0.610>0.05. Therefore, Ha is rejected and
Ho is accepted, meaning that the PBV variable has no effect
on the share price of PT. Mayora Indah TBK in 2015-2024.

b. F-Test
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Source : SPSS Version 25

The F-test result shows a significance value of 0.125, which is
greater than 0.05. This condition indicates that the regression model is
simultaneously insignificant. In other words, the EPS and PBV variables
together do not have a significant effect on stock prices. This indicates
that changes in stock prices cannot be strongly explained by these two
variables simultaneously.

Discussion
The results of this study provide an important overview of the
relationship between fundamental indicators—Earning Per Share (EPS)
and Price to Book Value (PBV)—and the share price of PT Mayora Indah
Tbk during the period 2015–2024. Empirical findings show that these two
variables have no significant effect, either partially or simultaneously, on
the share price. This condition indicates that the company's stock price
movements are more influenced by external dynamics than internal
fundamental changes as measured by EPS and PBV.
Theoretically, EPS is commonly viewed as a key indicator of
profitability that should increase investor interest when its value
increases. However, the regression results show a negative and
insignificant coefficient direction when tested simultaneously, implying a
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difference from the signal theory which states that an increase in profit is
usually interpreted as positive news for the market. This discrepancy can
be explained by the characteristics of the FMCG industry, which tends to
have stable margins, high levels of competition, and dependence on
fluctuations in raw material costs. In a mature industry such as FMCG,
investors tend to pay more attention to long-term growth, market
expansion, and product innovation than to annual fluctuations in net
profit.
Findings related to PBV also show patterns that are inconsistent with
many previous studies. In general, PBV is considered a valuation indicator
that reflects market expectations of a company's ability to create value.
However, in this study, PBV did not have a significant effect on stock
prices. The data shows that book value per share increased relatively
quickly, while stock prices moved more slowly. This created a downward
trend in PBV in the long term, even though the company's fundamentals
improved. This phenomenon indicates that the market may have reached
a point of equilibrium in assessing the valuation of PT Mayora Indah Tbk
shares. Thus, the PBV variable is no longer a dominant factor in shaping
investor perceptions.
When compared to studies in other sectors such as banking, mining,
and finance, these findings show quite clear differences. Previous studies
often found that EPS and PBV had a significant effect on stock prices in
those sectors. This difference in results is likely related to industry
characteristics, market structure, and investor sensitivity, which vary
across sectors. For consumer goods companies such as Mayora,
expectations of operational stability and long-term distribution
sustainability are factors that are given more attention than technical
annual fundamental changes.
From a practical standpoint, these findings have implications for
investors and company management. Investors need to consider that
traditional fundamental indicators do not always reflect stock price
movements in consumer goods companies. External factors such as
macroeconomic conditions, exchange rates, global commodity prices,
consumer behavior, and industry competition can have a greater
influence. For management, these results indicate the importance of
market communication strategies, investor expectation management, and
strengthening non-financial factors that are perceived by the market as
indicators of sustainable growth.
Overall, the results of this study show that the market value of PT
Mayora Indah Tbk in the 2015–2024 period is more sensitive to external
dynamics and market sentiment than to key fundamental variables such
as EPS and PBV. This reinforces that stock analysis in the consumer goods
sector requires a more holistic approach, not only relying on financial
ratios but also considering structural factors and dynamic market
behavior.
 1st International Conference on
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Conclusion
This study aims to analyze the effect of Earning Per Share (EPS) and
Price to Book Value (PBV) on the share price of PT Mayora Indah Tbk
during the period 2015–2024. The results of the analysis show that both
variables have no significant effect, either partially or simultaneously.
Statistically, EPS and PBV can only explain a small portion of stock price
variation, while the majority is influenced by other factors outside the
research model.
These findings contribute significantly to the literature on
fundamental analysis, particularly in the context of the consumer goods
industry. Unlike the banking or mining sectors, which consistently show
stock price sensitivity to fundamental indicators, FMCG companies such as
Mayora demonstrate that external factors, market perceptions, and
macroeconomic conditions play a more dominant role. Thus, this study
confirms that the use of EPS and PBV as the main tools for assessing stock
prices in the consumer goods sector needs to be done carefully and
supplemented with other more representative indicators.
This study has limitations, particularly in terms of the limited
number of observations over a 10-year period and the use of only two
fundamental variables. Future research should include additional variables
such as ROE, DER, sales growth, macroeconomic factors, and non-
financial variables such as product innovation and market expansion. In
addition, more comprehensive methodological approaches such as panel
data models, VAR, or volatility analysis could also enrich our
understanding of the factors that influence stock price dynamics.

Acknowledgments
The author would like to express his deepest gratitude to Mrs. Siti
Apriliani, S.E., M.M., for her guidance and academic support, which
enabled this research to be completed successfully. The author also
thanks the Indonesia Stock Exchange (IDX) and PT Mayora Indah Tbk for
providing financial report data and market information openly, which
served as the main source for the empirical analysis in this research.
Thanks are also extended to colleagues who provided input, scientific
discussions, and constructive suggestions that helped improve the quality
and accuracy of this scientific work.

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