Determinants of Property Company Value: Analysis of Liquidity and Profitability on the Indonesia Stock Exchange

Abstract

This study aims to analyze the determinants of company value in the property and real estate sector listed on the Indonesia Stock Exchange (IDX) for the 2020-2023 period. The variables examined include the Current Ratio (CR) as a proxy for liquidity and Return on Equity (ROE) as a proxy for profitability, with Price to Book Value (PBV) representing company value. Using a quantitative approach and purposive sampling, five major property companies were selected as samples. Data were analyzed using multiple linear regression via SPSS 26. The results indicate that during the observation period, the average CR of the sampled companies was 244.7%, and the average ROE was 13.01%. Simultaneously, liquidity and profitability significantly influence company value, contributing 49% to the variation in PBV. These findings suggest that investors should meticulously evaluate both liquidity and profitability metrics before making investment decisions in the property sector