<![CDATA[The Price Earning Ratio (PER) represents a fundamental benchmark extensively adopted for evaluating a company's market valuation and investors' expectations of future performance. However, previous research findings concerning the impact of leverage and profitability on PER continue to show disparate results, notably within developing economies like Indonesia. This research endeavors to analyze the effects of Debt to Equity Ratio (DER) and Return on Equity (ROE) on PER of PT Indofood Sukses Makmur Tbk, a prominent food and beverage enterprise registered on the Indonesia Stock Exchange, over the 2013–2022 timeframe. This investigation adopted a quantitative method by exploiting secondary data gathered from the firm's yearly financial reports. A total sampling approach was implemented, encompassing a ten-year observation period. The variables were computed employing descriptive statistics, classical assumption tests, multiple linear regression, coefficient of determination, and hypothesis testing operating IBM SPSS Statistics. The statistical output reveals that neither DER (p = 0.938) nor ROE (p = 0.347) demonstrates a significant consequence on PER. Additionally, the simultaneous analysis of DER and ROE yields an insignificant result toward PER (p = 0.622). The coefficient of determination (R²) reveals that just 12.3% of PER variation is captured by the two independent variables, while 87.7% originates from unmodeled factors outside the proposed model. Such observations indicate that investors' valuation of PT Indofood Sukses Makmur Tbk is contingent upon a wider matrix of fiscal and non-fiscal determinants distinct from leverage and profitability. This study adds to the financial management literature by offering recent empirical evidence originating within Indonesia's food and beverage industry as well as presenting actionable frameworks intended for asset managers and firm executives in gauging organizational worth via financial ratio analysis]]>
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