Abstract:
For investing at the capital market, beginner investor needs to do a company analysis to know the expected
return of their investment.. This analysis can be done fundamentally, technically, and economically. The capital
market offers many sectors to ease the investors for making investment desicion. One of the sectors is banking
sector, which is the most important sector for all countries, because it has a lot of source of fund from the
community and used for business expansion through credit or loan scheme. This research attempts to analyze
the influence of dividend payout ratio, debt to equity ratio, and return on equity to price book value of state
bank within the period year 2012 – 2015. This research is using multiple linear regression using pool data. Pool
data is the combination of time series data and cross section data. The result of this research shows that
partially only return on equity significantly influence to price book value. But, simultaneously return on equity,
dividend payout ratio, and debt to equity ratio significantly influence to price book value. This research shows
the importance of making a fundamental analysis which include debt analysis, dividend analysis, and
profitability analysis before investing at the capital market.
