<![CDATA[Purpose: The pharmaceutical subsector shows notable variation in market valuation over 2021-2025, which prompts this study to test whether four core ratios, Current Ratio, Debt to Equity Ratio, Total Asset Turnover, and Return on Assets, help explain differences in firm value as captured by Price to Book Value. Research Methodology: Seven pharmaceutical Companies traded on the Indonesia Stock Exchange during the 2021-2025 period form the sample for this analysis, processed through EViews 14 under a Random Effect Model panel regression with 35 total observations. Because the initial estimation reveals autocorrelation, the study applies a data differencing procedure to correct it. Results: Among the four ratios, only Return on Assets carries a positive and statistically significant partial influence on firm value; Current Ratio, Debt to Equity Ratio, and Total Asset Turnover do not. Taken together, the four variables jointly explain 59.47% of the variance in firm value (Adjusted R-squared = 0.594702). Conclusions: Among the tested variables, profitability, captured through Return on Assets, emerges as the strongest driver of firm value in this subsector, while liquidity, leverage, and asset efficiency carry no individual explanatory weight. Limitations: A sample restricted to seven pharmaceutical firms and 28 differenced observations limits the statistical power available to detect partial effects. Contributions: The findings extend financial management literature on valuation within healthcare-related industries and offer practical guidance for investors and corporate managers operating in the pharmaceutical subsector.]]>
