This study aims to examine the effect of Economic Value Added (EVA) and profitability ratio on stock prices in banking sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2019–2023 period. The method used is a quantitative approach with multiple linear regression analysis. The research sample consisted of 24 companies with a total of 120 annual observations, selected through purposive sampling techniques. The results of the analysis show that partially, EVA has no significant effect on stock prices, while Net Profit Margin (NPM) has a positive and significant effect. Simultaneously, EVA and NPM have a significant effect on stock prices. The Adjusted R² value of 0.239 indicates that 23.9% of the variation in stock prices can be explained by the two independent variables. This finding indicates that investors consider easily accessible profitability indicators such as NPM in making investment decisions, while EVA has not been a primary consideration. The implications of this study are the importance of companies maintaining operational efficiency and profitability to attract investors, as well as the need for investor education regarding the use of EVA indicators as a more comprehensive performance evaluation tool.
Handayani et al. (Sat,) studied this question.