A Analysis of Price to Book Value Determinants: The Role of ROE, DER, and Firm Size in the BEI Miscellaneous Industry Sector (2020-2024)

The Role of ROE, DER, and Firm Size in the BEI Miscellaneous Industry Sector (2020-2024)

  • Dwi Perwitasari W Universitas Jember
  • Elisabeth Fransiska Sibarani Universitas Jember
  • Salahuddin Rijal Arifin Universitas Jember
DOI: https://doi.org/10.36841/growth-journal.v23i1.6491

Abstract

This study reveals that return on equity (ROE) significantly increases price to book value (PBV), while debt to equity ratio (DER) and firm size do not show a significant effect. A comprehensive analysis proves that these three factors together influence company valuation, with profitability emerging as the main determining factor. These findings reinforce the importance of financial performance in market valuation, while capital structure and operational scale show a more limited impact.


 


Keywords: return on equity, debt to equity rasio, firm size, price to book value

Published
2025-06-13
How to Cite
W, Dwi Perwitasari; SIBARANI, Elisabeth Fransiska; ARIFIN, Salahuddin Rijal. A Analysis of Price to Book Value Determinants: The Role of ROE, DER, and Firm Size in the BEI Miscellaneous Industry Sector (2020-2024). Growth, [S.l.], v. 23, n. 1, p. 139-153, june 2025. ISSN 0215-1030. Available at: <https://unars.ac.id/ojs/index.php/growth-journal/article/view/6491>. Date accessed: 08 feb. 2026. doi: https://doi.org/10.36841/growth-journal.v23i1.6491.
Citation Formats
Issue
Vol 23 No 1 (2025): MEI
Section
Articles