Influence of P/E ratio and market capitalization on returns of the securities in the energy sector in the stock exchange of Thailand

Abstract

This research aimed to study the influence of P/E ratio and market capitalization on returns of the securities in the energy sector in the Stock Exchange of Thailand. In this research, the researcher has studied and collected data from the closing prices of the securities in energy sector that are currently traded in the Stock Exchange of Thailand. From January 2015 to December 2019 from the Stock Exchange of Thailand, 15 companies and used descriptive analysis, mean and standard deviation to test the relationship between independent variables by using correlation analysis and multiple regression analysis to determine the influence of P/E ratio and market capitalization on returns of the securities in the energy sector. The results of the research showed that the P/E ratio had a significant positive influence on returns of the energy securities in the Stock Exchange of Thailand. The market capitalization factor also found that it had no influence on returns of the energy securities in the Stock Exchange of Thailand.