THE EFFECT OF RETURN ON EQUITY, DEBT TO EQUITY RATIO, AND CURRENT RATIO ON COMPANY VALUE IN PHARMACEUTICAL SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2020-2023 PERIOD

Abstrak

Company Value is one of the important things when choosing an investment plan in the capital market. One approach to determine the high or low of shares or the assessment of a share is by looking at the Price to Book Value of the company. The higher the Price to Book Value ratio, it can be interpreted that the company is more successful in creating value for shareholders. This study aims to test The Effect of Return on Equity, Debt to Equity Ratio, and Current Ratio Factors on Company Value. The population in this study were all pharmaceutical companies listed on the Indonesia Stock Exchange for the period 2020-2023. The sampling technique used purposive sampling and 8 companies were obtained as research samples. The analysis technique used in this study was multiple linear regression analysis using SPSS where the data had previously been tested using classical assumption tests such as normality, multicollinearity, heteroscedasticity and autocorrelation tests. The results of this study indicate that Return on Equity, Debt to Equity Ratio, and Current Ratio together have a significant effect on Company Value with an R Square of 60.9%. While individually, Return on Equity has a negative and insignificant effect on Company Value, while Debt to Equity Ratio and Current Ratio have a positive and significant effect on Company Value.