The Effect of Profitability on Company Value in Banking Companies Listed on the Indonesia Stock ExchangeSabrin1*, Omasrianto1, Muhammad Amir2, Muhammad Nur Afiat3, Darmono4

This study aims to analyse the effect of profitability on firm value in banking companies listed on the Indonesia Stock Exchange from 2019 to 2023. Profitability is measured using three main indicators: return on assets (ROA), return on equity (ROE), and net profit margin (NPM). Meanwhile, firm value is measured by using the price to book value (PBV) ratio. The research adopts a quantitative approach with multiple linear regression analysis, using secondary data from the audited annual financial statements of 20 selected banking companies, based on purposive sampling criteria. The results show that ROA, ROE, and NPM have a positive and significant effect on firm value both partially and simultaneously. Keywords: Profitability, firm value, banking, ROA, ROE, NPM