<![CDATA[This empirical inquiry examines the structural relationships between distinct profitability metrics specifically Return on Equity, Gross Profit Margin, and Net Profit Margin and corporate valuation, while concurrently evaluating the conditioning role of corporate governance operationalized via managerial ownership. Situated within the consumer non-cyclicals sector of the Indonesia Stock Exchange (IDX) from 2022 to 2024, the study adopts a quantitative methodology using a purposively selected panel dataset of 126 firm-year observations across 42 enterprises. Statistical estimation was executed via variance-based Partial Least Squares Structural Equation Modeling (PLS-SEM) utilizing the SmartPLS 4 suite. The empirical outcomes reveal that Return on Equity enhances firm value, whereas Gross Profit Margin and Net Profit Margin exert no influence. Moreover, interaction analysis indicates that managerial ownership fails to moderate or amplify the profitability valuation nexus. These insights suggest that capital market participants prioritize an enterprise's efficiency in generating returns on equity over top- or bottom-line profit margins during asset appraisal. Ultimately, the inquiry underscores that ROE remains a pivotal heuristic for market valuation, whereas internal governance monitoring mechanisms do not structurally optimize the translation of operational earnings into market premiums.]]>
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