<![CDATA[Stock valuation on the exchange is not solely driven by macroeconomic conditions but also by financial signals embedded in corporate disclosures. This study examines the extent to which two profitability indicators—Net Profit Margin (NPM) and Return on Assets (ROA)—shape share price movements of PT. Gudang Garam Tbk over a ten-year horizon (2014–2023). The departure point is an observed anomaly whereby profitability trends and stock price responses do not consistently align. A descriptive-quantitative design was adopted, drawing on quarterly financial data to generate 40 observational pairs. Analytical tools included simple and multiple linear regression, Pearson correlation, coefficient of determination, and t- and F-significance tests. Statistical outcomes reveal that: 1) NPM independently accounts for 54.2% of share price variation (t= 6.700; sig.= 0.000); 2) ROA contributes 16.6% independently (t = 2.754; sig.= 0.009); and 3) the two variables jointly explain 54.5% of price variation (F = 22.196; sig.= 0.000). This pattern corroborates signalling theory, whereby transparent profitability disclosures heighten investor attention toward a company's shares.]]>
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