The Effect of Profitability, Asset Growth, and Profit Growth on Company Value

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Quantitative analysis reveals profitability and profit growth significantly boost firm value, indicating strategic priorities for technology firms.

Higher profitability and profit growth significantly enhance firm value in the technology sector.
The simultaneous test confirms profitability, asset growth, and profit growth collectively influence firm value with an F-value of 10.203.
The study finds that 48.9% of firm value variation is attributed to profitability, asset growth, and profit growth.
Companies in the technology sector should prioritize strategies that enhance profitability and profit growth for improved market valuation.

Pasaribu et al. (2025) studied this question.

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Quantitative analysis reveals profitability and profit growth significantly boost firm value, indicating strategic priorities for technology firms.