This study aims to empirically examine the effect of liquidity, leverage,
dividends, and activity on the price earnings ratio. The population used are
manufacturing companies in the food and beverage consumer goods industry
sub-sector listed in Indonesia Stock Exchange in 2017 – 2020. The sampling
technique used is purposive sampling technique, and 54 samples are obtained.
The analytical methods in this study are descriptive statistics, classical
assumption test, multiple regression, and hypothesis testing. The results of this
study indicated that leverage, dividends, and activity have a positive effect on
price earnings ratio, while liquidity has a negative effect on the price earnings
ratio.