This study aims to examine and analyze the contribution of financial performance in shaping the stock price valuation of banking companies listed on the Indonesia Stock Exchange from 2020 to 2024. The approach used is an associative quantitative approach utilizing secondary data in the form of annual financial reports and closing stock price data. A purposive sampling technique was applied to select 10 banking issuers that met the research criteria, resulting in 50 observation units over five years. Financial performance measurement refers to four main ratio dimensions, namely Current Ratio (CR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Total Asset Turnover (TATO). Data analysis was performed using simple linear regression that had previously gone through a series of classical assumption tests. The research findings revealed that financial performance has a negative and significant effect on stock prices (t = -2.940; sig = 0.005 < 0.05), with an explanatory power of 67.9% (Adjusted R² = 0.679). These results indicate that the dynamics of banking stock prices are not solely determined by internal fundamental factors, but are also influenced by macroeconomic conditions, market sentiment, and other external factors that are more dominant during the period studied.
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