THE EFFECT OF CAPITAL STRUCTURE AND PROFITABILITY ON THE COMPANY'S VALUE AT PT MAYORA INDAH

Abstract

This research aims to analyze the influence of Capital Structure (Debt to Equity Ratio/DER) and Profitability (Return on Equity/ROE) on Company Value (Price Earning Ratio/PER) at PT Mayora Indah Tbk during the 2014–2024 period. This research uses quantitative methods with a statistical approach with the help of the SPSS version 27 program. The analysis used includes descriptive tests, classical assumption tests, simple and multiple linear regression, t tests, F tests, and coefficient of determination. The research results show that partially Capital Structure has a positive and significant effect on Company Value, while Profitability has a negative and significant effect on Company Value. Simultaneously Capital Structure and Profitability have a significant positive effect on Company Value. The coefficient of determination (R²) value of 0.775 indicates that 77.5% of the variation in Company Value can be explained by Capital Structure and Profitability, while the remaining 22.5% is influenced by other factors outside this research. The results of this research indicate that optimal capital structure management and sustainable increase in profitability are important factors in increasing company value.