Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)
Vol. 19 No. 2 (2025): Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal)

Analysis of Company Valuation Based on Tobin's Q Model in Industrial Sector Companies on the Indonesia Stock Exchange

sriwahyuni (Politeknik Negeri Ujung Pandang)



Article Info

Publish Date
03 Dec 2025

Abstract

The industrial sector on the Indonesia Stock Exchange experienced significant challenges with fluctuating contributions to the JCI, showing an increase in the early period but declining substantially in recent years. This study aims to analyze the company value of industrial sector issuers on the Indonesia Stock Exchange using the Tobin's Q model for the period of four years. The research employs a quantitative descriptive approach with industrial sector companies selected through purposive sampling technique. Data was collected through financial statement documentation and analyzed using the Tobin's Q ratio to classify companies based on their market valuation conditions. The results reveal that the majority of companies have a Tobin's Q value below one, indicating that stock market values are lower than the book value of assets. Only a small portion of companies fall into the overvalued category. This study concludes that most industrial sector companies on the IDX have not optimally managed their assets and require improved asset management efficiency to create added value for shareholders. The findings suggest significant room for improvement in asset utilization within Indonesia's industrial sector.

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Journal Info

Abbrev

jebe

Publisher

Subject

Description

The focus areas of the journal include, but are not limited to: Economic theories and models: The journal welcomes articles that explore and analyze economic theories, models, and frameworks to understand the behavior of markets, industries, and economies. Management practices and strategies: ...