The Effect of Profitability and Firm Value on Stock Price(Empirical Study on Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange)

Abstract

The purpose of this study is to examine the significance of the relationship between share prices and corporate value and profitability. Profitability is measured by return on assets (ROA), capital market closing prices are used to determine share prices, and price to book value (PBV) is used to determine firm value. Companies in the food and beverage subsector that were listed on the Indonesia Stock Exchange (BEI) between 2020 and 2023 made up the study's population. A sample of 64 financial reports was used for the investigation. Purposive sampling is used in the sampling procedure. Using SPSS version 29 as a data processing tool, the multiple regression analysis, F test, and t test data analysis methods are employed. The results of this research show that profitability has a positive and significant effect on stock prices, and company value has a positive and significant effect on stock prices. Meanwhile, for simultaneous influence, profitability and company value influence share prices.