THE The Effect of Net Profit Margin, Debt to Asset Ratio and Sales Growth on Firm Value 2021-2024 in the Property and Real Estate Sector on The Indonesia Stock Exchange

Abstract

This study investigates the effect of net profit margin (NPM), debt to asset ratio (DAR), and sales growth on firm value in property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. The property and real estate sector plays a vital role in Indonesia’s economic structure and experienced significant dynamics during the post-pandemic recovery phase. Firm value is proxied by Tobin’s Q, which reflects market perceptions of corporate performance and growth prospects. This research employs a quantitative approach using secondary data obtained from audited annual financial statements and stock market records. Panel data regression analysis is conducted using SPSS to examine the relationships between financial performance indicators and firm value. The sample is selected through purposive sampling based on specific criteria related to financial stability, listing standards, and data availability. The results show that net profit margin, debt to asset ratio, and sales growth simultaneously have a significant effect on firm value. However, partially, only net profit margin has a significant positive effect on firm value, indicating that profitability is a key determinant of market valuation in this sector. In contrast, debt to asset ratio and sales growth do not have a significant impact on firm value, suggesting that leverage and revenue growth alone are insufficient to enhance firm valuation during the observed period. These findings imply that investors should prioritize profitability indicators, particularly net profit margin, when evaluating property and real estate firms.