Escalate : Economics and Business Journal
Vol. 4 No. 4 (2026): Escalate : Economics and Business Journal

The Effect of Leverage and Profitability on Company Value at PT Bank Sinarmas Tbk for the 2015-2024 Period

Yutisa Telaumbanua (Program Studi Manajemen Fakultas Ekonomi Dan Bisnis Universitas Pamulang Tangerang Selatan)
Dina Novita (Program Studi Manajemen Fakultas Ekonomi Dan Bisnis Universitas Pamulang Tangerang Selatan)



Article Info

Publish Date
22 Oct 2026

Abstract

The development of the banking sector and fluctuations in company value encourage the importance of analyzing financial factors that influence market valuation of companies. This study aims to analyze the effect of leverage and profitability on company value at PT Bank Sinarmas Tbk for the period 2015–2024. The study uses a quantitative approach with a descriptive method. The study population is the annual financial statements of PT Bank Sinarmas Tbk for the period 2015–2024, with a sample of 10 reports selected using saturated sampling. The research instrument is documentary data obtained from annual financial statements and stock price data. Data analysis uses descriptive statistics, classical assumption tests, multiple linear regression, t-tests, F-tests, and coefficients of determination with EViews 12. The results show that DER has no significant effect on PBV with a significance value of 0.2847, while ROA has a positive and significant effect on PBV with a significance value of 0.0273. Simultaneously, DER and ROA have no significant effect on PBV with a significance value of 0.074004. In conclusion, profitability is a more relevant factor in explaining company value than leverage in the research object.

Copyrights © 2026






Journal Info

Abbrev

escalate

Publisher

Subject

Economics, Econometrics & Finance

Description

Escalate invites both empirical and theoretical articles that explore micro and macro phenomena. The journals publication scope encompasses a wide array of domains, including macro and micro economics, business strategy and policy, entrepreneurship, finance and accounting studies, human resource ...