The Effect of Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Loan to Deposit Ratio, and Cost to Income Ratio on the Firm Value of Banks Listed on the Indonesia Stock Exchange for the 2021–2024 Period

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Quantitative analysis reveals that capital adequacy and asset quality impact firm value in banks, suggesting implications for investor evaluations.

Capital adequacy ratio negatively affects firm value, highlighting its role in investor perceptions.
The net interest margin shows a significant negative correlation with firm value, suggesting efficiency concerns.
Loan-to-deposit ratio relates inversely to firm valuation, indicating potential risks in credit distribution.
Cost-to-income ratio appears to have no significant effect, revealing certain performance metrics may contribute less to firm value.

ATHAYYA et al. (2025) studied this question.

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Quantitative analysis reveals that capital adequacy and asset quality impact firm value in banks, suggesting implications for investor evaluations.