Pengaruh Profitability dan Firm Size terhadap Firm Value pada Perushaan Sub Sektor Perbankan yang terdaftar di BEI Periode 2022-2024

Firm value is an important indicator used by investors to assess a company’s ability to create shareholder wealth. Firm value is influenced by fundamental factors, including profitability and company size, which reflect the company’s ability to generate profits, manage risks, and optimize assets. This study aims to examine and analyze the effect of profitability and firm size on firm value, both partially and simultaneously. The research was conducted on banking subsector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. Data were collected through library research, with a sample consisting of 51 observations. The analytical method used was multiple linear regression analysis. The results indicate that profitability has a significant effect on firm value. Profitability, measured by Return on Assets (ROA), serves as an important indicator for investors in evaluating banking performance because higher profitability reflects the company’s ability to generate stable and sustainable returns. Firm size also has a significant effect on firm value, although large asset ownership does not always guarantee improved market performance. Simultaneously, profitability and firm size significantly influence firm value. These findings indicate that investors consider not only profit generation but also the company’s capacity to maintain business sustainability and manage resources effectively, which ultimately strengthens market confidence and increases firm value.