Analysis of Financial Performance Economic Value Added Market Value Added to Company Value (Empirical Study of PT Toba Pulp Lestari Tbk 2019-2023)

Abstract

This study aims to examine the influence of financial performance indicators (current ratio, debt-to-equity ratio, inventory ratio, net profit margin) and economic value added, as well as market value added, on firm value as represented by the price-to-earnings ratio. This research employs a quantitative methodology. The data is obtained from secondary sources, specifically the financial records of PT Toba Pulp Lestari TBK from 2019 to 2023. The employed method is multiple linear regression analysis with EViews 12. Conclusions can be derived from the study titled Analysis of Financial Performance of Economic Value Added and Market Value Added in Relation to Company Value at Toba Pulp Lestari TBK from 2019 to 2023. Current Ratio (CR) positively and significantly influences company value, while Debt to Equity Ratio (DER) negatively and significantly impacts company value. Inventory Turnover (ITO) also has a negative and significant effect on company value. Net Profit Margin (NPM) positively affects company value but is insignificant. Economic Value Added (EVA) and Market Value Added (MVA) both positively and significantly enhance company value.