| Price to book value (PBV), is considered one of the variables that can affect a company’s stock price, in this study the authors wanted to know how the effects of variables such as return on equity (ROE), earnings per share (EPS), debt to-equity ratio (DER), and the price of earnings ratio (PER) influence to PBV. This study uses data that has been listed on the Indonesia Stock Exchange (BEI), the sample used is that companies engaged in financial sector, and which has a positive value of EPS, for three consecutive years during the years 2007 to 2009 which amounted to 50 companies, this study uses the method of correlation and multiple linear regression method with the program spss version 17. Results obtained from this research, it turns out the independent variables, ROE, EPS, DER, and PER only to explain the dependent variable PBV of 25.6%, and based on the result of the study also discovered that ROE be the most dominant variables and give the largest contribution in determination of PBV. Yet to be seen there are many other fundamental factors that have an influence on PBV, there are also macro-economic factors that are difficult to predict, so it is expected for investors, to be more careful in conducting investment analysis, before making their investment, because investment in the stock is fairly high-risk investment. |