Bayu Wijayantini

Universitas Muhammadiyah Jember

Alfi Arif

Universitas Jember

Achmad Hasan Hafidzi 

Universitas Muhammadiyah Jember

Ahmad Rusdy Al Mahdi

Universitas Muhammadiyah Jember

Taufik Sobri

Universitas Mahakarya Asia Kampus Baturaja 

DOI: https://doi.org/10.19184/bisma.v20i1.60011

ABSTRACT 

This study investigates the relevance of Benjamin Graham’s classical financial indicators—Earnings per Share (EPS), Price-to-Book Value (PBV), Price Earnings Ratio (PER), Return on Equity (ROE), Current Ratio (CR), and Debt-to-Equity Ratio (DER)—in explaining Indonesian banking stock prices during 2020–2023 within the context of sustainable business transformation. Using panel data from six major LQ45 banks (BBCA, BBRI, BMRI, BBNI, BRIS, and BBTN), the analysis employed a fixed effects panel regression model supported by robustness checks. The findings reveal that PBV and ROE are strong positive determinants of stock prices, while DER and PER have significant negative effects, indicating investor caution toward leverage and overvaluation. EPS and CR were found to be insignificant. These results confirm the enduring relevance of Graham’s value-investing principles while highlighting how market valuation is increasingly shaped by sustainability and resilience considerations in Indonesia’s evolving financial landscape.

Keywords:  Banking Sector, Benjamin Graham,  ESG Finance, Net Zero, Sustainable Business, Value Investing