Factors Affecting Firm Value in Indonesian Manufacturing Companies

The objective of this research is to obtain an empirical evidence about the effect of sales growth, firm size, leverage, and profitability on firm value. The object of this research is manufacturing companies listed in the Indonesia Stock Exchange during 2018-2020. The sample was selected using a purposive sampling method with the criteria that companies listed on the Indonesia Stock Exchange are included in the manufacturing sector and prepare audited financial statements for the year ending December 31 using the rupiah currency; companies that do not include stock splits, reverse stock splits, rights issues, or buybacks and companies should actively trade; the company has positive profits in a row and has successive sales growth. The secondary data was analyzed by using descriptive statistics, normality test, classical assumption tests, and hypothesis testing. The results of this study are (1) sales growth (SG) has no effect on firm value (PBV), (2) firm size (FS) does not affect firm value (PBV), (3) leverage (DER) does not affect firm value. (PBV), (4) profitability (ROA) has a significant positive effect on firm value (PBV). Sales growth, firm size, leverage, and profitability simultaneously have a significant effect on firm value.