The prediction of stock prices movement has always been a concern for investors when they make investment decisions. Most of stock markets all over the world provide data on price to earnings ra-tio (P/E) and price to book value ratio (P/B). How reliable these data are for investment is not clear-ly known. This study examines how accounting data of P/E and P/B can predict the stock prices. The study selects data from 218 firms listed in Indonesian Stock Exchange as sample over the peri-od 2007-2016 and they are analyzed by multiple linear regression. The study shows that price to earnings ratio (P/E ratio) had no effect on stock prices for each year and also in all periods, but price to book value ratio (P/B ratio) had positive effect on stock prices, which means that the higher the P/B ratio, the more expensive the stock price. The decision of firm management is to maximize price to book value ratio (P/B ratio) which means to maximize the shareholders’ wealth. However, on the contrary, investors always seek the lower P/B ratio to get the desirable gains. Nevertheless, since the statistical analyses show there are many other variables affecting the stock prices movement, the investors should not rely only on P/B ratio for making investment decisions.

Investment decision making by Engineering Managers needs to take into account microeconomic and macroeconomic factors in a country. The role of Engineering Managers in making decisions is crucial and very important. Technical Managers need to consider macro-economic effects such as the US dollar exchange rate against the rupiah, the interest rate set by Bank Indonesia, inflation, especially during the preparation of the Budget Plan (RAB). This research is to analyze the macroeconomic effect on stock prices, to prove the hypothesis, a quantitative approach is used. Macroeconomics are assessed through the US dollar exchange rate, and financial statements data of banking companies.