What Do Fundamental Screener Metrics Mean for Indonesian Stocks on Pluang?
Fundamental Screeners on Pluang use eleven standard accounting and valuation metrics — Market Cap, Net Profit Margin, P/E Ratio, P/B Ratio, ROE, ROA, Debt-to-Equity, Interest Coverage Ratio, Dividend Yield, Dividend Payout Ratio, and EPS Growth — plus 5-year Revenue Growth for the Combination screeners, and each measures a genuinely different aspect of a company's financials rather than duplicating another metric. P/E and P/B are valuation metrics that compare price to earnings and book value; ROE, ROA, and Net Profit Margin are profitability metrics that measure how efficiently a company turns revenue or capital into profit; Debt-to-Equity and Interest Coverage are financial-health metrics that measure leverage and how comfortably a company services its debt; and Dividend Yield, Payout Ratio, and EPS Growth together describe how much a company pays out, how sustainably, and whether its earnings are still growing. Every threshold Pluang uses is calibrated to Indonesian-market norms rather than borrowed from US or global benchmarks, since typical values for these metrics differ meaningfully between markets.
Plain-language explanations of each metric:
| Metric | What it measures | How to read it (Indonesian context) |
|---|---|---|
| Market Cap | Total market value of the company (price × shares outstanding) | Rp500T = very large; Rp100T = large; Rp1T–Rp100T = mid-cap; |
| Net Profit Margin | Net profit as % of revenue | Typical Indonesian average ~10–12%; >15% = competitive edge |
| P/E Ratio (Price-to-Earnings) | Stock price ÷ earnings per share | Long-term IDX average ~13–15; <13 may signal undervaluation; very low (<4) often signals problems |
| P/B Ratio (Price-to-Book) | Stock price ÷ book value per share | Indonesian banks often trade around 1.5; <1.5 may be cheaper; <1.0 = trading below book |
| ROE (Return on Equity) | Net profit as % of shareholder equity | 15% = solid; 20% = elite; measures profitability per Rupiah of equity |
| ROA (Return on Assets) | Net profit as % of total assets | Measures profitability per Rupiah of total assets; less affected by debt than ROE |
| Debt-to-Equity | Total debt ÷ shareholder equity | <0.5 = low debt; 0.7 = conservative quality (Pluang's Indonesian Stocks benchmark); >1.0 = highly leveraged |
| Interest Coverage Ratio | Operating profit ÷ interest expense | Indonesian average >8; >15 = very comfortable; <3 = stretched |
| Dividend Yield | Annual dividend ÷ stock price (%) | >5% = high; 3–7% = healthy range; 0% = no dividend paid |
| Dividend Payout Ratio | Dividend ÷ net profit (%) | <60% = sustainable; >100% = paying out more than profit |
| EPS Growth | Year-over-year growth in earnings per share | "Positive over 5 years" = consistently growing earnings |
| 5-year Revenue Growth | Compounded annual revenue growth over 5 years | >15% = strong growth profile |
A warning that applies to every one of these metrics: no single number tells the full story on its own. A low P/E can signal genuine undervaluation or a troubled business the market has correctly priced down. A high ROE can come from real profitability or purely from heavy leverage. Read the metrics together — that's exactly why Pluang's screeners combine two or three of them per screen rather than filtering on just one.
Related questions:
Q: Why is the Indonesian P/E benchmark different from the US market's?
Different markets carry different growth expectations, interest rate environments, and risk premiums, which all feed into what "normal" P/E looks like. The IDX's long-term average sits at 13–15, while the US S&P 500 has historically traded closer to 15–20+, so applying a US-style P/E cutoff to Indonesian stocks would flag almost everything as "cheap."
Q: Is a higher Dividend Yield always better?
Not always — a very high yield can actually be a warning sign rather than a benefit. It can mean the share price has fallen sharply (mechanically inflating the yield) or that the dividend itself isn't sustainable at current earnings. Always check Payout Ratio and EPS Growth alongside Yield before treating a high number as purely good news.
Q: What's the practical difference between ROE and ROA?
ROE measures profit generated per Rupiah of shareholder equity, while ROA measures profit generated per Rupiah of total assets, including debt-funded assets. Because ROE ignores how those assets were financed, a company that takes on significant debt can show an impressively high ROE while its ROA — the less debt-distorted measure — stays comparatively low.
Q: Why does Pluang combine multiple metrics in most Fundamental Screeners instead of just one?
Any single metric can be misleading in isolation — a low P/E alone doesn't distinguish a genuine bargain from a company in decline. By requiring two or three conditions to hold simultaneously (e.g. low P/E AND low P/B AND low Debt-to-Equity for Undervalued Opportunities), Pluang's screeners filter out more of the false positives a single-metric screen would let through.